Freehold Nepotism

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    Freehold Nepotism

    Hi there,

    My block of flats has 8 shares. I have one flat and one share. the majority shareholder has 1 flat, 3 shares. She started the building limited company before I moved in, and it's just her and her ex partner on the board. The two of them always end up doing the work on the building (well, they have set up a building 'company' and they get their mates to do the work). The work they do is below acceptable and we are in constant battles with the managing agent (a separate company) to get them to chase up the freeholder to rectify the rubbish workmanship. They don't like doing this, they just want to take the service charge and not be bothered with any actual work.

    There are many twists and turns with all of this but I'll keep it short.
    I have a share of the freehold, am I legally obliged to be on the board of directors of the management company? I have checked the articles of association and reading through the legal terminology I think it's saying I don't. Which I understand, but what I don't understand is how mine and every other shareholders' votes do not count. I say vote, we don't even have the opportunity to discuss anything. We aren't privvy to any decisions.

    +Can anyone advise how we can exercise our right to enable our voice to be heard?

    +Can we call a meeting with other leaseholders and tell the majority freeholders to do one?

    +If we ask the managing agent and the majority freeholder to meet us, do they have to meet us? Say if we call an AGM (if we even have the right to)

    I don't have the money for a legal battle, I did contact a law school who offer free advice but the over seeing solicitor had a conflict of interest (the chances?!) so couldn't help with my case.

    I just want work to be done, when needed, by the qualified people and actually use my share of freehold to keep the grade ii listed building in some sort of decent order.

    Thank you in advance.

    It all depends upon what type of shares you have been allocated. I would have thought that the people actually running the management company (who according to you are also share part of the freehold) would have a vested interest in doing the repairs as it's their property as well. Leaving that aspect out, you should seek legal advise on the matter, and as a leaseholder you could contact

    If it is badly managed have you thought about selling and moving on, without the hassle of dealing with it?


      - Nobody can be forced to be a director of a company (indeed some people are disqualified)
      - If you are disabled and you feel the property is not managed according to the law/lease it is better not to be a director (or even a minority shareholder).


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