Leaseholder (Non- Director) Bullying Management Company

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    Leaseholder (Non- Director) Bullying Management Company

    Hi all

    I am one of 5 directors who manage a Flat Management Company, consisting of 6 flats. There are five 5 flats tenanted and then 1 owner-occupier who is not a Director - She has been invited to join but has not responded to the request. She hasn't paid her share portion since moving in.

    Over the past year since she has moved into the property, she has not stuck to the lease/rules of the property and as the directors who manages all of the property maintenance I have continuously had to police and remind her of the rules. In addition, she has been reluctant to contact the whole group when discussing changes, and for a month either accosted me at the property or has sent me numerous emails - specifically trying to get me to make changes to the property without consulting the groups. She has also made a number of structural changes to the property and thrown numerous items aware owned by tenants/contractors and directors.

    She also mentioned on one occasion being upset because she wasn't invited to one of the tenant's house parties, which I think is a big expectation as they use shared spaces but the property is not communal. She has also been changing arrangments with contractors, even though work is always agreed by the group.

    I informed the other directors about my concerns and they agreed to leave it for a while and see how it goes. This was a bad idea.

    A few weeks later, whilst a contractor was present she shared a number of defamatory points about the management company and another director to the contractor, who later informed us of this. This happened another 3 times with other contractors.

    Following this, she contacted the directors, leaving me out and has threatened to sue the company for mismanagement. We are running the company very well. This has made a number of directors nervous as they re trying to complete sales of flats.

    I had my suspicions that she was influencing my tenants to complain about the really small issues in the communal space, a responsibility of the management company that had to be on hold during the lockdown.

    My tenants requested to weirdly move out a month before the 12 months have passed. I agreed as, during this time, I don't need the stress and we discussed this at the property and I left them to leave without paying the last month rent. After I left, a contractor informed me that she had approached the tenants and said she wasn't happy with there decision and had offered to help my tenant take me to court! I didn't think the tenants were upset about leaving the property, as they had said they were actually concerned about paying for it for a further 12 months.

    I have also witnessed her influencing other tenants and I'm concerned she i going to affect everyone income...

    Following this, the threat of court, resulted in a director agreeing to her chairing a meeting which was and 1.5 hours of her complaining and bullying the group - all points the majority agreed with, which included her managing contractors! I was dumbfounded! As a lot fo, the actions are directed at me I feel bullied/victimised and not really supported. Its a really sad position to be in during this time and hasn't helped as during it I have lost 3 family member to the virus.


    My questions are:
    - Should she be expected to pay the £1 share amount?
    - Can we legally hold a directors meeting to discuss this and decide how to move forward - without being accused of alienating her.
    - Are there any laws around conduct to other residents and responsibility as a leasholder?
    Apologies about grammar etc, I'm so tired of trying to figure this all out for the best....

    This all sounds a blurred gobbledegook mess of an arrangement.

    All the roles and obligations are being muddled

    Directors owe their responsibility to the leases and maintenance of the building. Their roles as landlords of tenants is completely different.
    No you cannot force anyone to be a shareholder of any company. What "rules of the property"?

    The Directors obey the lease. The lessees obey the lease. It is not some sort of commune. And directors don't direct in a mannner that facilitates their "sales of flats".


      Thank you AndrewDod for your comments.

      The company has run quite perfectly until now. We have someone doing there upmost to upset the apple cart and as this is the first time we have dealt with this kind of issue, I wanted to get some advice,

      Those who are Landlords are also Directors and are aware of the roles of both. In my post above we have the only freeholder who is a non-directors treating the property like a "commune" and she has been sharing information with tenants that they should not be aware of/shared lies. This has resulted in 2 tenants leaving.

      I am trying to find out what legal right we have in dealing with this.

      We aren't forcing them to be a shareholder. I simply wanted to know if a new freeholder/leaseholder is required to pay the share amount as they essentially own it.

      In regards to rule, I meant the rules of the lease and we have a term of reference, which highlights a number of do/don't follow a Fire Risk Assessment.

      Re sale of flat: The flat owners who are selling their flats are simply nervous about the tension this person is causing and worried she may affect sales if her behaviour it witnesses.


        It is hard to respond without any specific examples of what you are complaining of and what "changes" she is ignoring, accosting and lying about. Here are some:

        a) Problematical lessee fails to obey fire safety rules by leaving their shopping in the passageways. Directors write to her formally about this They remove the shopping.

        b) Problematical lessee fails to pay service charges. Directors write once formally, then engage lawyers to sue the lessee. They first make sure the charges are valid in the first place.

        c) Problematical lessee tells unspecified lies. You ignore that. Controlling lies is not a substantial part of the remit of the company owning the freehold.

        d) Problematical lessee chooses not to take up her rights as a shareholder of said company. Nothing you can do about that. Sometimes that is a reasonable choice if a company is not functioning well.

        Bottom line. You obey the rules. You read the RICS code and the lease. She obeys the rules or gets sued. The only rules that are relevant are those in the lease and in legislation/RICS code. You don't make up rules generally or change them.


          Originally posted by PositiveProperty View Post
          We aren't forcing them to be a shareholder. I simply wanted to know if a new freeholder/leaseholder is required to pay the share amount as they essentially own it.
          There is so much wrong with this paragraph and I wonder whether you guys actually know what you’re doing...?

          Is she a freeholder or a leaseholder? If she owns a flat then it’s unlikely (but not impossible) that she’s a freeholder. If she’s indeed a freeholder then it’s unlikely she can be forced to buy into a Mgmt Co. More likely she’s a leaseholder, like the other flatowners. If so, who’s the freeholder? The Mgmt Co? And what does the lease say about membership of the Mgmt Co? Only if the leases mandte mmbership in the Mgmt Co can she be required to do so. And even then it really depends.

          So without knowing all the details, what are we supposed to say?


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