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

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    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?

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


      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.



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


          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.


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