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?
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?
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