Right to Manage

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    Right to Manage

    A Ltd company ABC Ltd was set up after gaining the right to manage a apartment development, which has 3 directors who won apartments within the development. The directors have instructed a local agent to badly manage the block. After 3 years the Ltd has filed dormant accounts, and the local managing agent has supplied accounts which consist of hand written invoices, photos of suggested invoices and claims the Ltd is legal. Surly the Ltd should keep accounts and the agent act under instruction of the Ltd?

    #2
    The service charge accounts are not company accounts. The company accounts will usually be limited to ground rents received (if any), and fees paid to company (for subletting etc), and company expenses (like filing).

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      #3
      Originally posted by woodchip35 View Post
      ... after gaining the right to manage ... directors have instructed a local agent to badly manage the block. ....Surly the Ltd should keep accounts and the agent act under instruction of the Ltd?
      An RTM company instructing an agent to badly manage? Splitting infinitives in agent instructions is unwise. In my experience some don't need to be instructed to manage badly.

      The RTM company will have dormant company accounts because it does not receive ground rent and is unlikely to collect admin fees if an agent is doing the work. Meanwhile the lease likely requires service charge accounts be provided annuaolly, no? If yes, same are required if only under ICAEW Tech 03/11 to be in the form of accrual accounts: an income statement, balance sheet, and notes, not just hand-written invoices.

      Being legit as an RTM company has nothing to do with the accounts?

      Agents should act under instructions, badly or otherwise. The challenge is finding leaseholder directors who know how to instruct managing agents or are prepared to do so. The Law Commission has advocated free training for volunteer RTM directors...something to which we can all look forward....to.



      Do not read my offerings, based purely on my research or experience as a lessee, as legal advice. If you need legal advice please see a solicitor.

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