Power of Residents Management Company

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    Power of Residents Management Company

    Obviously, directors are responsible for the running of the Company. If shareholders are unhappy with their actions do they have any legal ways to affect their decisions ? Obviously option to replace but this could be too late or no replacement available. Any insights appreciated.

    #2
    Your options will probably depend on exactly what it is that you are unhappy with, and what you want to achieve.

    Shareholders can potentially challenge company decisions, but that might depend on the company articles and how the decision was made.
    Leaseholders can challenge any work that they are expected to pay for as part of their services charges, and anything that might be a requirement of the lease (but what they can challenge, and how they should challenge this, may differ dependent on circumstances).

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      #3
      Thanks for your prompt and helpful response. Unfortunately that seems to mean pursuing decision through tribunal or court action. This would incur hassle and cost.
      Probably end up only one doing work and others benefiting !

      Comment


        #4
        Originally posted by scot22 View Post
        Thanks for your prompt and helpful response. Unfortunately that seems to mean pursuing decision through tribunal or court action. This would incur hassle and cost.
        Probably end up only one doing work and others benefiting !
        Depending on the situation, that is often the only way - unless you are able to approach any of the directors informally and ask them to reconsider decisions.
        Company decisions, which will include decisions concerning the service charges, will usually require voting by directors but in some cases may also require shareholders to be consulted. Make sure that you know what the company articles state, and that any requirements are being followed.

        Sometimes though, results can be achieved without actually taking tribunal/court action, especially if you know that you are in the right and can put forward a convincing argument.
        In the same way that you don't want the hassle of taking official action, most directors will probably want to avoid the hassle of having to defend against action - especially if their is a good chance that they will lose.

        Comment


          #5
          Thanks again for your valuable advice.

          Comment

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