RTM Hand Over Issues

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    RTM Hand Over Issues

    RTM handing over issues

    Our RTM companies comprise 4 blocks of 6 identical two bedroom flats and each block is registered at Companies House as a separate company.
    Following the acquisition date, it was discovered the former directors ignored legal advice and changed property management companies in the middle of a service charge period, without consulting shareholders and without a competitive tendering process taking place.
    An EGM was held attended by the former directors whom neglected to mention during the meeting that £13,000 was not handed over by the previous property management company whom so far refuse to pay. A chartered accountant has examined the accounts at transfer and established beyond doubt that the previous company was still charging for services after the acquisition date and which they were no longer providing.
    As one of the newly appointed resident directors, I feel duty bound to recover the £13,000 and gave the previous company 14 days to respond but, as with the freeholder,(owner of the property management company), also refuses to reply to letters sent recorded delivery.
    Would a 1st tier Tribunal (Property Chamber) adjudicate or say it was outside their remit?
    Should shareholders write off this £13,000 and put it down to experience, or is their any hope of recovery, and if so, how could this be achieved in a cost effective way?

    #2
    I am clearly no expert but i think this statement from the all knowing WWW appears to fit the bill for what has happened to you.................

    '' Fraud can be broadly defined as the deliberate use of deception or dishonesty to disadvantage or cause loss (usually financial) to another person or party''



    I would be reporting this to the Police.

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      #3
      You could sue the other company for the money owed.

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        #4
        We lost a fair bit of reserve fund when we went RTM but consoled ourselves with the knowledge they would no longer be ripping us off annually.

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          #5
          You appear to have a claim against the freeholder, not the individual companies, who are acting as agent for the freeholder. A Tribunal does not have the jurisdiction to deal with monies which should be handed over, it is a matter for the courts,

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