User Profile

[eagle2]

I don't think that generalising (incorrectly) assists anyone, There is no point in claiming a reserve fund if it is not permitted within the lease because sooner or later a leaseholder will realise that he does not need to contribute towards it and there is nothing that a management company can do to...

[eagle2]

Gordon999 - if the lease does not permit it, a leaseholder can object to contributing towards a reserve fund. Here the management company is trying to deal with the problem by raising monies outside the lease and under the Companies Act.

[eagle2]

I think that there is a balanced view on here, certainly there are at least 2 of us trying to assist Sophiejo as a leaseholder and I can only think of one person who is stating a landlord's or manager's POV. For my part, I am trying to steer Sophiejo away from paths which are likely to end in a cul...

[eagle2]

Counsel's opinion obtained by the ICAEW is that the service charge monies do not belong to the management company and the ICAEW has ruled that the service charge bank balance must not be included as an asset of the company. The consensus view of the accountancy profession is that you cannot include...

[eagle2]

The Memorandum of Association only sets out the Company’s objects and they are wide ranging so that they do not need to be changed on a regular basis. A Company will often never carry out some of the activities which are permitted. The Company may be authorised to collect monies from members but unless...

[eagle2]

Is there any electric supply to the storage rooms and is it fed by the communal supply?

[eagle2]

Do you know if the accountant used by the management company is a registered auditor? There is a difference between an accountant who only holds a practising certificate and one who is also a registered auditor. You may be able to insist on the company using a registered auditor.

I did...

[eagle2]

I suppose you could charge rent for the use of the storage rooms if there is no service charge contribution....

[eagle2]

Will you please let us know the precise wording and specify whether you are quoting from the Articles or the Memorandum of Association. How does the sinking fund operate? Does the Company set the amount annually, does it change up or down? Can the balance be repaid to the directors? What happens when...

[eagle2]

Whether or not the freeholder is required to contribute depends on the terms of the lease. You can make a reasonable charge for supplying copies of documents,

[eagle2]

There are also tax issues to be considered if the income does not equate to the expenditure of the Company, it is not operating strictly within the terms of the trust....

[eagle2]

I suppose that you could resign as a director and avoid the contribution

[eagle2]

It all depends how difficult the freeholder wishes to be. I suggest that you contact the freeholder and ask him to quote a price for the freehold and then it is up to you to decide whether or not you consider it worthwhile paying the asking price or taking it to a Tribunal.

[eagle2]

There is no simple answer, the freeholder can delay the process and it can take more than a year quite easily and I would not be surprised if it extended to 2 or more years. Is the freeholder aware of your plans?...

[eagle2]

The short answer is yes, members and directors are required to comply with the Articles. However, if a majority of members wish to amend the Articles they can do so at a meeting of members. The management company needs to comply with both the Companies Acts and the Landlord & Tenant legislation....

[eagle2]

Sophiejo

I agree with Macromia to the extent that you appear to be making statements rather than seeking assistance and I note that you have not responded to my comment in #3 “I am unsure what you are hoping to achieve”.

I have no doubt that you are aware that the management...

[eagle2]

Macromia,

I understand your frustration and I recall that you went to great lengths to try to assist Sophiejo in a previous thread but ultimately we can only offer the benefit of our experience and it is then for a reader to decide whether or not to take any notice. There are other readers...

[eagle2]

The management company is required to keep service charges to a reasonable level and as a leaseholder you can ask it to justify the reserve fund (including what you describe as a slush fund) contributions. ...

[eagle2]

s476 CA 2006 specifically states that a member may require the company “to obtain an audit of its accounts for a financial year”. I have agreed already that you can obtain an audit of a dormant company but that would be pointless.
Your lease appears to have been drafted prior to 1980 and the...

[eagle2]

You should also check whether or not you are allowed to estimate service charge expenditure and collect monies in advance.

You should hold monies in a separate bank account with “client account” in the title.

You should also check whether or not you may charge interest on...