Company director of management company empty’s bank account

I have not mentioned any names as there is an ongoing police case. 

I would like some options with regard to this issue. I have recently been informed by a newly appointed management company that they have been appointed to manage the site.

These are the bare bones of the issue …..

• The site consists of block of flats around 36 in number and 56 1 bedroom houses.
• In 20011 the 3 directors of the residents holding company (call it company A ) decided to appoint a new company to manage the site (call this company B ) The old management company handed over £110,000 after finalizing the accounts in 2011.
• One of the three directors of company A was the managing director of the new management company B
• This director of company B informed the other two directors that he had taken £40,000 out of the bank account of company A without permission in October 2013.
• Once informed of this they told him to refund the money and not to take anymore out of the account without permission.
• In November 2013 the directors call a members meeting and it was decided to appoint another management company as of 1st April 2014.
• Newly appointed company call it C repeatedly asks for accounts and for details relating to accounts but get no reply from company B
• On 2ed April 2014 the new company C ask the bank to freeze the business account due to concerns.
• The two directors of company A get a bank statement in July 2014 and discover that most of the money has been transferred to company B leaving around £2000
• They then dismiss the offending director on 22nd July 2014 as a director of company A.

I have recently received a service charge from the new management company C for years 2014 to 2915 which I paid. They then invoiced me for the service charges from 2011 to 2014. At this point I started asking questions as I was unaware of the situation.

Once I became aware of what has transpired I suggested the following ….

1) Claim off the insurance cover of company A or company B under theft or fraud or even directors public liability for failing to run the company correctly.
I have been informed that company A have let their insurance cover lapse . They don’t know if company B has any insurance cover as they do not get any response from that company. I don’t know if a claim could be made against the two remaining directors personal insurance?

So the bottom line is the new management company C do not know anything and are asking for proof of payment prior to them taking over management. Can they do that?

I understand they are trying to do their best but how did the directors allow it to go on for so long they don’t know were the service charges for the last 3 years have gone in addition to the £110,000.

Regards

Chris

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