Role of director in Residential management company

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    Role of director in Residential management company


    Our board of directors wish to simplify and be less involved in the day to day running of our block of flats.
    They have on more than one occasion had to (successfully) defend legal claims for disrepair from residents who have become exasperated with the managing agents and tried to take action against the board instead.
    This defence has been paid for out of communal service charge funds.
    Nobody in our block particularly wants to be a director, the current directors will only continue as long as any resident does not take action against the company and drain the funds.
    Ideally they want their sole responsibility and liability to be in appointing a managing agent (agree a schedule of building maintenance and works) and an accountant.....a vote can be held at every AGM so that residents can decide whether to continue with the managing agents or appoint a new one.
    If a managing agent or resident are in dispute, a resident can seek their own legal recourse against the elected managing agent if required.
    Is this possible to implement? or do the board have to be involved in any individual disrepair dispute?
    What happens if the whole board resigns?!

    This is a nonsense

    a) The Directors ARE responsible. They cannot devolve that responsibility. If the agent stuffs up the Directors/Company are responsible. They need to manage the agent.

    b) They cannot claim their defence out of service charge funds - it is a not a service charge expense. They pay it out of their pockets (or possibly insurance)

    c) If the whole board resigns, the Company is dissolved and the freehold is owned by the Queen. You then have the choice of buying it back or having the building collapse.


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