Reporting the directors of a RMC to be unfit

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Reporting the directors of a RMC to be unfit

    Hello...and thank you for listening
    I am wondering if one could report the RMC directors to be unfit - several breaches of Companies Act - blackmailing / coercing the residents / misleading statements regarding the right to acquire the freehold - probably false accounting ( still investigating this). Talking to the other residents is not an option as the directors have misled them as to their rights and they believe that any objections would cost them money. Most of them are pensioners and they can't afford legal expenses --- also, they are not versed in company & leasehold law.
    The RMC should be not-for-profit -- the accounts show differently? - and the Insolvency service says that we can only report a trading company???
    Please help!

    #2
    In practice, this is almost impossible.

    I don't understand the not for profit thing. How are the profits being distributed. It is normally possible to get dispensation from tax if temporary excesses are always used for future expenditure. NB. service charge monies are never beneficially owned by the company and therefore don't affect the company profit situation. Many RMCs probably still fail to distinguish between service charge monies and company monies.

    You can report breaches to Companies House, but it is unlikely they will start a prosecution for an RMC.

    Really there are only two ways of dealing with a rogue RMC:

    - get the members to vote the directors out of office;

    - get the FTT to appoint a manager, who will take over all service charge responsibilities.

    You seem to have ruled out the first and the second definitely will cost the leaseholders money.

    You seem to have started tow threads on the same basic issue; I believe that is against the forum rules. The other thread is https://forums.landlordzone.co.uk/fo...ort-for-an-rmc As discussed in the other thread, transfers from the payment on account to the reserve fund are internal operations within the service charge trust, for any vaguely normal lease, so don't constitute a profit for the company. Service charge monies should not appear on the company end of year balance sheet.

    Comment


      #3
      Hello Leaseholder 64,
      Thank your for your reply. I didn't think that they are the same issues ...that's why I started another post. I can now see how they can have a common point. To my mind, whether I can report the directors was different to what is the correct account report for a RMC. My apologies.
      Sorry to hear that if one is a RMC director can be very costly or emotionally stressful.

      Comment

      Latest Activity

      Collapse

      • Applying to Tribunal
        by Paulsen
        I have a complicated history with my managing agent and I have written a few times on here. They have issued debt collecting for “unpaid” ground rent and I don’t think I have an option but to apply to the Tribunal.
        They issued a letter suggesting to use my insurance payment of £3997 against...
        17-01-2020, 15:14 PM
      • Reply to Applying to Tribunal
        by Paulsen
        “Following the expiry of this letter and neither a response nor payment being made, we will continue to collect the arrears in full” this is what it states at the end of the letter. £100 ground rent and £250 fees.

        They are acting on behalf of the freeholders, but the managing agent...
        21-01-2020, 00:34 AM
      • Reply to Applying to Tribunal
        by fos333
        If they have put your account on hold again it should not be a problem.

        Did the letter not contain 'Following the expiry of this letter and neither a response nor payment being made, we will (where applicable) notify the parties with a registered financial interest on HM Land Registry of...
        21-01-2020, 00:04 AM
      • Reply to Applying to Tribunal
        by leaseholder64
        Lenders often ask to be informed at an early stage, so I would say they can, and if they are in the habit of it, will do so early.
        20-01-2020, 23:52 PM
      • Reply to Applying to Tribunal
        by Paulsen
        Yes the letter from DCA did say to only communicate with them which I have done and they have put the account on hold. I received an email today saying I need to pay them, but I rang again and forwarded the letter from the agent where they are suggesting using my insurance money towards costs. I also...
        20-01-2020, 23:30 PM
      • Reply to Applying to Tribunal
        by fos333
        ARMA will not be the redress scheme for your MA, it will be either The Property Ombudsman or Property Redress Scheme.

        Google 'leasehold redress schemes' and the information you require is there.

        The old MA will be regulated by ARMA who may look at your issues as you already...
        20-01-2020, 22:47 PM
      • Being removed as a director from freeholder company
        by surreygirl
        I have just had a notification that I and the rest of the Directors have been removed as Directors from the Company. We have a Managing Agent now and he sent out an email a week ago to say he is now ready to "Manage" the property and has called a meeting for next month to discuss the work...
        20-01-2020, 14:42 PM
      • Reply to Being removed as a director from freeholder company
        by surreygirl
        Yes I am. I have checked thank you!!...
        20-01-2020, 21:57 PM
      • Reply to Being removed as a director from freeholder company
        by surreygirl
        Thank you all for your comments. Very interesting. The Agent did come back to me and say that we had been put down as owning more the 25% and that was incorrect and so we have been removed as "a person with significant control".

        But thank you all for your interest and comments....
        20-01-2020, 21:57 PM
      • Law Commission's suggested schemes For Leasehold reform
        by TruthLedger
        Has anyone had a chance to read through the new proposals for leasehold reform? What do you make of the three schemes suggested by the Law Commission? Which scheme do you favor?
        18-01-2020, 17:16 PM
      Working...
      X