RTM Obligations

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    RTM Obligations

    Afternoon,

    I have used this Forum previously for excellent helpful advice throughout obtaining our Right To Manage.

    We had no option than to invoke the RTM procedure as we had an 'extremely aggressive Freeholder' that I shall not mention in a public forum. We took over around 18 months ago and have filed our first accounts with companies house.

    Can I just ask a couple of questions please.

    1) Am I correct in saying the RTM Ltd company is a 'vehicle' and has no transactions and can be made dormant? i.e. The company is non profit but we obviously have expenses like water, maintenance etc which would be split as per lease to the flats.

    2) I'm presuming I do not have to send the freeholder these accounts?

    Unfortunately our first year Accountant was not the best and has not been able to answer our questions. I plan to obtain a decent Accountant before this years accounts are due.

    Thanks in advance

    #2
    1. Yes
    2. Yes and No . The freeholder should be a member of your company and should be invited to attend meetings where he could propose that he be included in the account circulation.

    Most RTMs however do seem to completely ignore the freeholder, sadly.

    Comment


      #3
      Thank you Section20z

      Comment


        #4
        The RTM Company Ltd ( backed by a majority of leaseholders in the block ) has the legal right to claim administration of the service charge account. The RTM Company has no income from ground rent or trading with external parties and is basically a non-profit making company.

        If the RTM appoints an external managing agent or a leaseholder to manage the service charge account, then it can be declared as a dormant company in annual returns to Companies House. The service charge account and unspent money is treated as belonging to the leaseholders.

        Comment


          #5
          Thanks for the update Gordon. Much appreciated!

          Comment

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