RTM conflict of interest

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    RTM conflict of interest

    Dear LLZ members

    I had a few queries that I would be grateful for clarification on, in relation to RTM arrangements.

    -Are representatives of directors of RTM companies allowed to carry out services e.g. gardening, cleaning, for money, or is this a conflict of interest?
    - Under what circumstances can directors and officers be removed from a company?
    -If a representative for a director has had insurance declined previously, and this was not declared to the D&O fact find on initial questioning (given that it is the representative rather than the director), is this something that would void the D&O insurance policy? If so, are there any ways around this situation to ensure that the policy is still valid?

    Thanks in advance for advice


    #2
    It is unclear what you mean by representatives, will you please explain,

    The directors should comply with the Articles of the RTM Company, the model Articles 19 state that conflicts of interest should be declared and the director concerned should not participate in the decision making process.

    Directors and officers can be removed by a majority vote at a meeting of .members.

    The proposal form for the insurance should be completed accurately, so you should check it. The reply to your question depends on what you mean by "representatives" and whether or not there is a relevant fact which should be disclosed.to the insurer and which would influence the insurer's decision to accept the risk.You could approach the insurer and disclose the information now if it is relevant. That may result in the insurer declining the risk or increasing the premium but it would be unable to state that it was unaware if and when a claim is made.

    Comment


      #3
      Thanks. I was told that Under Article 10 of the RTM rules apparently a director can delegate their duties and powers to a nominated representative.

      Comment


        #4
        Article 10 is intended to allow directors to form sub committees to report back to the directors and a director to appoint a specific person to act on behalf of that director eg in case of illness or absence. The members of the Company have the power to change the Articles if they so wish,

        Comment


          #5
          The RTM rules are on this link :

          https://www.legislation.gov.uk/uksi/2009/2767/made

          Under clause 24, Directors are not entitle to remuneration.

          Comment


            #6
            Originally posted by shuey View Post
            Thanks. I was told that Under Article 10 of the RTM rules apparently a director can delegate their duties and powers to a nominated representative.
            if you had only one director for 10 flats, He / she can delegate their duties to a) a leaseholder who is an accountant b) a person to engage workmen and ensure the property is well maintained by the tradesmen. c) delegate their duties to other mere mortals at the property for mundane tasks, checking the car park for unauthorised cars, cos the director is out at wsork all day.

            Directors are there to run the property, and not to profit from a director cutting the grass.

            The Director will not have insurance to cover himself if as a result of his gardeing actions, some one is hurt, therefore he should be stopped from acting as a paid tradesman.Directos only delegate their duties as one would in an office. Directors do not put on overalls and do the maintenence work -- end of.

            Comment


              #7
              Section 16 of the RTM Rules :

              Quorum for directors’ meetings

              16.—(1) At a directors’ meeting, unless a quorum is participating, no proposal is to be voted on, except a proposal to call another meeting.

              (2) The quorum for directors’ meetings may be fixed from time to time by a decision of the directors, but it must never be less than two, and unless otherwise fixed it is two.

              (3) If the total number of directors for the time being is less than the quorum required, the directors must not take any decision other than a decision—

              (a)to appoint further directors, or

              (b)to call a general meeting so as to enable the members to appoint further directors.

              Comment

              Latest Activity

              Collapse

              • Reply to Service charges according to floorspace vs lease stipulation
                by eagle2
                A Tribunal will only look at the way that the total costs have been apportioned and consider whether or not it is "fair and reasonable". It is bound to find that allocating charges equally is "fair and reasonable", similarly it would also find that splitting costs by floor area is...
                28-01-2022, 10:48 AM
              • Service charges according to floorspace vs lease stipulation
                by Santa Fe
                Hello. I own a flat in a block of four. The new owner of the smallest flat is disputing their contribution to service charges based on floor size. All four flats have historically paid 25% each, but of the four leases only mine states that I pay 25%. I have spoken with a solicitor about this and he...
                24-01-2022, 22:55 PM
              • AGM cancelled.
                by Grumio
                Is this legal?

                A bit of background, we currently have three directors, we are allowed to have up to a maximum of eight directors according to the articles of association. We are all leaseholders. Last summer the three directors decided to hire a managing agent who is now in charge of the...
                26-01-2022, 00:46 AM
              • Reply to AGM cancelled.
                by fos333
                The OP needs to check his articles along side Table A and determine if those regulations apply or not, it's usual for this type of company to exclude regulations 73 to 80 inclusive, but as eagle2 states 76 & 77 could still apply.

                This also removes the requirement for directors to retire...
                28-01-2022, 10:44 AM
              • Reply to Service charges according to floorspace vs lease stipulation
                by eagle2
                The leaseholders are regarded as having accepted the terms of the lease, how much say they had in the matter is probably very little,...
                28-01-2022, 10:22 AM
              • Licenced Garage
                by Pariah81
                Some leaseholders on our estate have a garage that is granted on licence when they purchase their flat. There are a few individual garages and also a communal garage.

                The licence states that the only use of the garage must be for the parking of a vehicle and it is required that a vehicle...
                27-01-2022, 19:26 PM
              • Reply to Licenced Garage
                by nukecad
                Could you clarify that, if it's a comunal garage then how can it be 'their' space?

                Conversely, if they are individual garages then how can they be 'comunal'?

                What do the leases of those who don't have a 'garage licence' say about this communal parking?...
                28-01-2022, 10:07 AM
              • Reply to Leaseholders with no information on the residential association accounts.
                by Andrew Folga
                Thanks for the replies.

                We've had a chat among leaseholders and we want to remove the director that is abusing his powers and does not give us access to all information we request.

                Yesterday we had another AGM to explain enormous charges that were imposed on us by the MA and...
                28-01-2022, 09:55 AM
              • Leaseholders with no information on the residential association accounts.
                by Andrew Folga
                Hi,

                I am one of the 6 leaseholders/freeholders of the property and also a shareholder of a residents association holding one share out of six.

                There is a director of a residents association that does not live here. He does not share any information on the company account balances...
                22-12-2021, 22:41 PM
              • Reply to Service charges according to floorspace vs lease stipulation
                by Macromia
                Have they?
                Sort of, but only in that they have purchased a lease in which there is a clause stating that they have to pay a "fair and reasonable" proportion of the service charges.


                If the four joint freeholders unanimously agree how the service charges should be split,...
                28-01-2022, 09:49 AM
              Working...
              X