Ltd Co asking for a debt to be paid by one of its Directors?

Ltd Co asking for a debt to be paid by one of its Directors?

13:51 PM, 8th February 2017, About 8 years ago 12

Text Size

I have recently purchased a property with a share of the freehold. Each flat owner is a shareholder of the company which owns the freehold, and must pay towards the maintenance of the block. The block is self-managed by a couple of the residents, and do this for free.split the bill

There are a couple of problematic shareholders who never seem to pay their complete maintenance fees. Of course, they are being sent reminder letters, but does anyone know the position legally, and how we can get paid the outstanding debts? I am guessing a letter from a solicitor is the answer, but wanted to check what laws would be applicable prior to warning of such legal action.

I find it slightly strange as it is effectively a Limited company asking for a debt to be paid by one of its Directors.

Any assistance would be appreciated.

Thanks

MK


Share This Article


Comments

Clint

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

21:23 PM, 9th February 2017, About 8 years ago

I take it that the Freehold is owned by a Limited Company with directors running the company. If this is the case I think it should be quite simple to get the non-compliant leaseholders to pay up. I have done this on more than one occasion as a director of an RTM Company self managing.

First of all write a letter to the leaseholders giving them two weeks to settle their bills along with the invoices and statutory notices informing them that if they do not settle within the specified time, you will start legal proceedings against them and inform them of the consequences which I am copying from one of my standard letter templates with slight amendments as I use this for short term tenancies as well as for RTM companies. See below:

"This may entail you paying court costs, interest on the money due and administration costs as indicated in the lease and any other costs that may become due. It may also affect your reference and credit rating and there is the possibility of forfeiture of your lease."

All of the above in the inverted comas may not apply as it depends on the wording of the lease.

Following the two week period, if payment is not made, I make a "Money Claim Online" and wait for the leaseholder to defend their case (which in most cases they don't) and immediately after, request a judgement and after receiving the judgment, I look up who the lenders are (which can be done on online via the land registry) and then write a letter to them requesting the money and sending the judgment. So far in each case the money has been paid by the mortgage company. If the leaseholder does not have a mortgage, apply for the bailiffs to go round or there are different things you could do such as attachment of earnings, apply for forfeiture, etc..

All very simple. Hope this is of help..................which reminds me I have a leaseholder with a CCJ who has both ignored the judgement which is over a year old now and has built up a debt as he has not paid anything for about four years now so will have to write to his lender and possibly apply for forfeiture of the lease which the lender will definitely not allow

Puzzler

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:34 AM, 11th February 2017, About 8 years ago

Not clear, is the non-payer a Director? First of all you can kick them off the board for not acting in the interests of the company.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More