Accounting for RMC

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  • eagle2
    replied
    SHill,

    You should be able to obtain statements of the bank account. The name of the account should have been supplied to you and you can demonstrate that it was open in June 2019.

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  • eagle2
    replied
    Originally posted by SHill View Post
    Would setting up a new company (RMC) negate the appointment of the Manager as well?
    The appointment has been made by the Tribubal which would not be affected as such, one of the parties to the case would no longer exist, The manager is working to the terms of the lease which do not change, The Tribunal would need to be satisfied that the new company is entitled to takeover the terms of lease and manage the building. If you are not careful, you could end up with a permanent appointed manager. Probably better to remove the manager first before considering setting up a new company, although I would not recommend a new company.

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  • eagle2
    replied
    Originally posted by SHill View Post
    I don’t think the accountant will hand over any information - it may take a court case to get it which will involve more time and money which I have neither.
    There is clearly a lot of misconduct in relation to the accounts so no doubt a lot of debt.

    Is the better option to strike off the company and start again?
    It would be complicated to strike off the company and start again, the rights and liabilities under the lease would need to be transferred to the new company and there could be objections from the other members, the manager and the creditors of the existing company. It would also deter prospective purchasers of the apartments..

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  • eagle2
    replied
    Originally posted by SHill View Post
    Nothing is easy dealing with the husband of the Director. He is instructing the accountant to not handover the accounts and they are not answering my emails or recognising my position as Director.

    I have reached another brick wall.

    I have filled out a complaint form with the ICAEW but there are long timelines involved before they do anything. What else can I do to enforce them to handover the accounts?
    I cannot risk missing another filing deadline under my name as Director. The fines double each year.
    You can only refer the accountants to Companies House to prove that you are a director and that the previous director has no authority to act, You can make a formal complaint and threaten to recover from them any costs which arise.

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  • SHill
    replied
    Can anyone tell me what are the rules about closing a trust account (ring fenced in line with S.42) holding the service charges.

    1.The company has not been struck off so the account should not have been closed.
    2. Is the bank obliged to tell me as Director of the RMC where the balance has been transferred to? Or does data protection not allow this.
    3 I have asked the bank to tell me who closed the account , on what date and where the balance was transferred to but they have said they can’t give me these answers due to data protection.

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  • SHill
    replied
    Trying to get the service charge transaction history (Trust Account) from the bank and this is their response below.

    Do you understand the banking system and how I can obtain the transaction history. The name and maybe the account number was probably changed deliberately by the Directors to prevent me from accessing it.

    I personally last paid money into the Company Trust Account account on 28.06.19 and have been paying into it since 2016 so there is no doubt of it's existence you would not believe it would be too difficult to locate. It is a Trust account and the Company is the legal trustee.

    The bank's response:-
    " We do not have an open account with this number. Unfortunately we can only search closed accounts by name and I have not been able to locate a closed account with this number searching on variations of XXX XXX Service Charge Trust.

    If we did hold an account with this number it will indeed be closed. As I have not been able to locate the account using the information provided I am unable to ascertain when it would have been closed. I could locate a closed current account for XXX XXX ( closed in 2015, not the number you have quoted) and that account was held with our Banking Services department, not Commercial Banking.
    "

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  • SHill
    replied
    Would setting up a new company (RMC) negate the appointment of the Manager as well?

    Leave a comment:


  • SHill
    replied
    I don’t think the accountant will hand over any information - it may take a court case to get it which will involve more time and money which I have neither.
    There is clearly a lot of misconduct in relation to the accounts so no doubt a lot of debt.

    Is the better option to strike off the company and start again?

    Leave a comment:


  • SHill
    replied
    Nothing is easy dealing with the husband of the Director. He is instructing the accountant to not handover the accounts and they are not answering my emails or recognising my position as Director.

    I have reached another brick wall.

    I have filled out a complaint form with the ICAEW but there are long timelines involved before they do anything. What else can I do to enforce them to handover the accounts?
    I cannot risk missing another filing deadline under my name as Director. The fines double each year.

    Leave a comment:


  • SHill
    replied
    Ok thanks, I have already sent a Formal Complaint to the Accountants and referred them to Companies House so I will wait for their response.

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  • eagle2
    replied
    1 It is a matter professional etiquette that an accountant enquires if there is any professional reason why he should not accept a new appointment, The outgoing accountant should confirm immediately.
    2 The outgoing accountant should handover all records within his possession eg books, accounts, documents and details of any adjustments which he has had to make.
    3 They are obliged to handover all accounts and cannot challenge your authority, just refer them to Companies House
    4 There is no reason to supply them with a copy of the minutes.
    5 to 7 You can threaten to report them to their governing body, if they are members of the ICAEW, that is where complaints should be addressed. Complaints forms are usually available on the relevant web sites. You usually need to supply evidence that the complaint has been
    sent to the accountant and adequate time has been allowed for a response.

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  • SHill
    replied
    I have appointed a new Accountant to deal with Company accounts only ( the appointed manager deals with the service charge accounts) He has sent his professional clearance letter to the previous accountant.

    1. What information should the previous accountant send to the new accountant and what timeline would be considered reasonable.

    2. What information should the previous Accountant handover to me as the Director of the Company.

    3. I have asked the previous accountant to send me the 2018 and 2019 service charge accounts for approval but they so far have not done so and have challenged my position as Director.

    4. They have asked me to send them the minutes of the meeting. I don’t think I should have to do this because they will forward them to the husband of the previous Director who is not a leaseholder or member of the Company and is causing all the problems by refusing to handover the bank accounts.

    5. If they continue to challenge my position as Director and refuse to handover the accounts for signing which is further delaying the filing at CH who do I make a complaint to. Is there a phone number for the ICAEW.

    6. The previous accountant had already told me, months ago, that the accounts have been prepared and were with the previous Directors for approval so the previous Accountant will be deliberately blocking the filing of the accounts if they continue to challenge my position.

    7. What pressure can I apply to make them comply.

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  • eagle2
    replied
    1 If you do not change the lease, you would need to make charges to the members and call a meeting to approve them. At this stage, it is better to change the terms of the leases but it looks like you need to watch the costs carefully. Will the manager pay for the legal costs involved from the service charges?
    2 The accountant may attempt to claim a lien over the records until payment of any outstanding fees is made.
    3 You are entitled to request the terms of the appointment, I suggest that you make it clear that you are making the request on behalf of the Company which instructed him
    4 You should be able to attend the FTT proceedings on behalf of the Company
    5 Similarly, the manager should update the Company, so enquire on its behalf rather than in your capacity as leaseholder.
    6 agreed
    7 You will be much more capable of managing the building than the manager, so yes, apply to the FTT to terminate the appointment and take control of the service charge monies.

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  • SHill
    replied
    There will be money owed to the accountant because as a result of the s.27a hearing it was determined Accountant's fees were not service chargeable. So the preparation of the 2018 and 2019 accounts will not have been paid for. The Company expenses previously had always been collected through the service charge.

    The Judge had to review this for s.24 management order to allow the Appointed Manager to allocate the service charge accounting expenses to the service charge and invited us to have the lease varied.

    1. I will have to make another Tribunal application to get a variation to the lease to allow for Company expenses to be included in the service charge. Is this your advice?
    2. For the moment I may need to lend the company the money to pay the previous accountant's bill otherwise he will have the right to withhold the Company information. I am sure this is a clause in his Terms of Business.
    3. Is the previous accountant obligated to provide me with a copy of his terms of business for the Company on request.
    4. The Appointed Manager is still in the middle of Tribunal proceedings to obtain information from the Respondent and the 2nd Respondent (previous Managing Agent). The Directors had me excluded from the proceedings to keep me in the dark. Ironically I am now the Respondent for the proceedings!
    5. The Appointed Manager is still not replying to my emails so I am unaware if she has obtained the information in line with the Tribunal Directions. I suspect not.
    6. If I can obtain the information from the Accountant this will be a start.
    7. When I know what Company information is being withheld by the Director's husband I will enforce this through the court because I know the Appointed Manager won't.
    7. I will sort out the Company first then move onto the matter of the Appointed Manager who has not proved herself to be capable at resolving matters or communicating on matters.

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  • eagle2
    replied
    I cannot see that the accountants can challenge your authority, just refer them to the Companies House website, I see no reason why they should request or you should supply the minutes of the meeting,. The accountants have a duty to handover any records which are in their possession and they should not obstruct the changeover, Are they claiming that they are owed any monies?
    If the former director is still withholding information, either the Company or the Manager can take action against him.
    I assume that now you will be applying for the appointment of the manager to be terminated.
    As you say, there is a lot to sort out.

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