RTM Company Member Incorporation

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

    RTM Company Member Incorporation

    Hi,

    Apologies is this is in the wrong forum section but does anyone know how to go about adding a member (not a director) to a RTM company several years after the company was formed?

    #2
    You should follow the Articles of Association. The model Articles 7 sets out a proposed application form to be completed and then 9 states that the directors consider the eligibility and if satisfied add the person to the register.

    The main point to consider is how the initial costs were dealt with at the time the RTM Company was formed. Were the costs added to the service charges? Did the original members lend monies to the Company?

    Comment


      #3
      Thanks for the info. The initial costs to set up the RTM company were paid for by all six leaseholders privately & not through the service charge.

      Comment


        #4
        The membership of RTM has to be kept above 50% or the freeholder may claim back the service charge account.

        Check the listing of RTM Ltd company at Companies House for past filing of members.

        Comment


          #5
          My understanding was that this is a proposed amendment to RTM reform but has not yet been brought in? Presently the membership can be anything as long as it's 50%+ at the start of acquisition.

          Comment


            #6
            Where is the law to say Membership can be anything ? The service charge account is funded by the leaseholders and leaseholders collectively should always keep the service charge account under their control.

            Comment


              #7
              Originally posted by Neil M82 View Post
              ... The initial costs to set up the RTM company were paid for by all six leaseholders privately & not through the service charge.
              How many leaseholders are there in total? If a leaseholder did not participate originally and is now seeking to become a member, you should make it a condition that he/she pays a contribution towards the initial costs. You should then credit the 6 leaseholders in the proportion in which they contributed to those costs.

              Comment


                #8
                There are six, five of which participated in the formation of the RTM company. I've already done exactly what you have suggested & asked them to contribute 1/6 of the original costs & split that equally between the original five leaseholders. I was just wondering if there's anything I need to do on the Companies House website to officially incorporate them but all it seems I can do is add them as a director.

                Comment


                  #9
                  Hi Eagle, the model articles do not make it a condition that they pay for the setup costs to become a member, any leaseholder is entitled to become a member.

                  Comment


                    #10
                    Neil M82,

                    I suggest you send email enquiry to Companies House asking "how to file new member's details for RTM company ( limited by guarantee )" ?

                    Comment


                      #11
                      Originally posted by Gordon999 View Post

                      Neil M82,

                      I suggest you send email enquiry to Companies House asking "how to file new member's details for RTM company ( limited by guarantee )" ?
                      There is no requirement to hold the membership register with companies house, it should be maintained at the head office of the RTM and made available for inspection by members.

                      All companies limited by guarantee (as well as other types of company) are required to keep a Register of Members under the Companies Act 2006.

                      The Register of Members of a company limited by guarantee must state:

                      - names and addresses of the members;

                      - the date on which each person was registered as a member;

                      - the date at which any person ceased to be a member.

                      Comment


                        #12
                        Originally posted by Gordon999 View Post
                        Where is the law to say Membership can be anything ? The service charge account is funded by the leaseholders and leaseholders collectively should always keep the service charge account under their control.
                        If there are 50% of the leaseholders as members when the RTM company takes over (as required), then most of those leaseholders sell up and cease to be members, leaving 1 member of the RTM, there is nothing to currently say this is wrong, so the membership level can be anything (of course not zero) after takeover.

                        There is a proposal to say if membership drops below 50% the freeholder can claim back management but this is not yet law.

                        Comment


                          #13
                          Originally posted by Milhouse View Post
                          Hi Eagle, the model articles do not make it a condition that they pay for the setup costs to become a member, any leaseholder is entitled to become a member.
                          I agree that there are different ways of dealing with the initial costs and any leaseholder may apply to become a member. In this case, 5 of the leaseholders have paid the total costs and therefore it is reasonable to ask the 6th leaseholder to pay a share of those costs as a condition of becoming a member.

                          Comment


                            #14
                            I think the leaseholders can vote to re-imburse the 5 leaseholders for RTM set up expenses from the service charge account .

                            Comment


                              #15
                              Originally posted by eagle2 View Post

                              I agree that there are different ways of dealing with the initial costs and any leaseholder may apply to become a member. In this case, 5 of the leaseholders have paid the total costs and therefore it is reasonable to ask the 6th leaseholder to pay a share of those costs as a condition of becoming a member.
                              You can't make it conditional on paying a fee to become an RTM member.

                              Comment

                              Latest Activity

                              Collapse

                              • Ground Rent review
                                by Century
                                United Scientific Holdings v Burnley Borough Council

                                Does this case mean that for a residential lease failure to give notice of GR increase during the review period doesn't matter? I.e review can be at any time, even after specified review date?
                                11-08-2022, 14:47 PM
                              • Reply to Ground Rent review
                                by Lawcruncher
                                I think the way the law sees it is that the tenant has a lease with the provision in it and knows that on certain dates the rent will increase and on what basis.



                                Must be the same developer and/or conveyancer.

                                Having a rent review for a ground rent is not generally...
                                12-08-2022, 12:18 PM
                              • Reply to Freeholder Premium to consent
                                by Limply
                                According to the lease, the roof and the roof structure are included in the Demised Premises. There is no mention of the space above the roof.

                                And wow I wasn't expecting that many answers! In any case, the other leaseholder (we are only 2 in the house) is open to buying the freehold so...
                                12-08-2022, 12:17 PM
                              • Freeholder Premium to consent
                                by Limply
                                Hi all,

                                I am looking at extending my leasehold flat by adding a newbuild next to the loft (will be erected on top of the first floor). I have just asked my freeholder for the process to follow. In the past they have asked me to pay a "Landlord’s premium for the consent to be established
                                ...
                                11-08-2022, 16:20 PM
                              • Reply to Freeholder Premium to consent
                                by AndrewDod
                                Not sure it does suggest that (either the no-ownership or the inferiority). A contract can be an asset in itself.

                                Some contracts are worth a lot (A New York Yellow Taxi Token was worth a $million until Uber came along).

                                Yes "You have no ownership in the building"...
                                12-08-2022, 12:12 PM
                              • Reply to Ground Rent review
                                by Century
                                Thanks Lawcruncher! That is hardly an equitable situation for the leaseholders, but if that’s case law then so be it.
                                BTW I have residential properties in three separate developments and all have identical clauses to 3.1 and 3.2 as posted above...
                                12-08-2022, 11:58 AM
                              • Reply to Freeholder Premium to consent
                                by Lawcruncher
                                It is more than mere semantics. For a start, on a forum which purports to give legal advice, we should not be saying anything which is not true. "You have no ownership in the building" is not true.

                                A tenancy is a tenancy is a tenancy. All tenancies have something in common. However,...
                                12-08-2022, 11:49 AM
                              • Reply to Freeholder Premium to consent
                                by Lawcruncher
                                I was interrupted while writing post 12 and posted it before reading posts 10 and 11.

                                Of course if any improvement involves extending into an area not included in the demise the landlord can demand a premium for extending the area of the demise. Any discussion about how the premium should...
                                12-08-2022, 11:12 AM
                              • Reply to Freeholder Premium to consent
                                by Lawcruncher
                                "...not to be unreasonably withheld or delayed" does indeed indicate there is no absolute prohibition. No premium can be charged, only legal or other expenses properly incurred in connection with the consent. If the landlord comes up with silly figures or wants a fee to consider whether he...
                                12-08-2022, 11:01 AM
                              • Reply to Freeholder Premium to consent
                                by AndrewDod
                                Not sure I am following your answer here Lawcruncher
                                In this case the proposal is to build outside of their demise.
                                Certainly there is no computed entitlement, but if agreed the premium is likely to be at least half the added value. So it falls into your (1) with that as a typical premium....
                                12-08-2022, 10:57 AM
                              Working...
                              X