How can building manage itself with no one officially in charge?

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

    How can building manage itself with no one officially in charge?

    I've just purchased an apartment in a building where there's been a high turn over of sales recently. Two of the three directors have now sold up leaving only 1 director in charge. A meeting was called but no one other than the current director and myself turned up and so the meeting was called off. The one remaining director says he will carry on managing, but with the company rules saying that three directors are required, can the company still legally operate?

    #2
    You should nominate yourself to be a director of the company if you have purchased a flat in the block.

    Comment


      #3
      Yes the company can still legally operate.
      If Marks and Spencer or B.T. had 2 directors leave, leaving them short of the
      required number of directors, do you think all the shops would have to close,
      all the staff sent home with no pay, or all the telephone lines would have to
      be shut down ( no phones or internet ) -- I don't think so.

      Legally, you only need one director, but read the Articles, where it
      may say, no less than one Dirctor, but no more tha five, or similar.

      If you cannot find someone who is prepared to be a legal entity ( Director ) who can be fined or imprisoned for wrong decisions /
      failing to submit accouints on time, and not many want that hanging
      over them, then the remaining director HAS to run the company, make decisions.

      Work has to continue until the required directors are found, bribed,
      abducted off the street, so your meeting should not have been abandoned.
      The company must continue to operate.

      It will be hard to get directors if you MUST have 3, seeing that
      no one else turned up, so just run the company with the one director,
      but suggest you nominate yourself, and clue up on ALL your legal responsibilities.

      R.a.M.

      Comment


        #4
        I have read the Articles which state that 3 directors are required.

        Comment


          #5
          There are two things here the statutory requirement of one director and the legal and contractual obligation to have 3.

          Unless owners come forward, then the directors and or 5 or 10% of the members/shareholders should call an EGM to amend the articles to allow two or at worst one.

          The company could still operate in practical terms however it is open to investigation by CH and decisions made might be invalid if challenged by owners, as well as some contracts unable to be entered into if a supplier checks the articles and register. It's bank may withdraw facilities.

          Call a GM asking for officers or failing that EGM to amend the articles. Talk to the company accountant about drafting the resolutions.
          Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

          Comment

          Latest Activity

          Collapse

          • collective enfranchisement
            by flyingfreehold
            Does a leaseholder have to be a registered proprietor to join a collective? Or is it sufficient for her/his/it to be a transferee whose interest is not yet registered?
            21-05-2022, 18:51 PM
          • Reply to collective enfranchisement
            by flyingfreehold
            at risk of answering my own question, the leaseholder has to prove title which is a bit difficult if not registered........
            21-05-2022, 21:23 PM
          • Building works & S20 process
            by RichA
            Hi. I have a freehold after selling a leasehold flat in a block of 4 flats. We don't currently have a managing agent, so these duties currently fall to me (I am holding off appointing a managing agent whilst the leaseholders consider whether they want to RTM).

            The block needs some maintenance...
            21-05-2022, 17:20 PM
          • Reply to Building works & S20 process
            by scot22
            It is relatively simple to administer process. However, definitely engage professional to define necessary work and project manage.

            If I can, anybody can.
            21-05-2022, 20:19 PM
          • Reply to collective enfranchisement
            by Tipper
            Ask lease-advice.org
            21-05-2022, 18:59 PM
          • Reply to Levy
            by scot22
            Thanks Gordon. There was no info other than amount and invoice which explained nothing !
            21-05-2022, 17:16 PM
          • Reply to Share of feehold/shared service charges?
            by Macromia
            They are correct that the purchase of the freehold has no relevance (although it would allow the three of you to alter the leases if you are all in agreement).

            Unless you alter the leases you continue to split service charge costs according to what the terms of your leases say - sharing...
            21-05-2022, 17:14 PM
          • Reply to Changes to lease wording
            by Lawcruncher
            If the leases are going to be for 999 years there is not a lot of point imposing a restriction in such terms. It is also open to interpretation. You have to decide first if you are going to allow subletting at all. That has to depend on what people want. If any owner already sublets then you cannot...
            21-05-2022, 17:09 PM
          • Changes to lease wording
            by bigalxyz
            In the process of buying freehold for our building. 9 participants (from 11 flats).

            Our solicitor will extend leases to 999 years for an additional fee if we want to. She has asked, as part of that extension process:

            ÔÇťAre there any amendments that you are seeking to make...
            14-05-2022, 12:27 PM
          • Reply to Levy
            by Macromia
            ...And it still going to depend on what it is for (and on what your lease allows to be charged for, and when.

            Service charge demands have to include details such as a service address for the freeholder, and have to be accompanied by an appropriate copy of 'leaseholders rights and responsibilities',...
            21-05-2022, 16:53 PM
          Working...
          X