Migrating to managing agent from residents’ management Co?

Reply to the comment left by NewYorkie at 14/04/2023 - 10:37
Probably owned by the company of which the flat owners are shareholders. If it was shared by the owners outside a company structure there would be no need for directors

Reply to the comment left by Crossed_Swords at 14/04/2023 - 14:49
That's correct. The Ltd Co. was set up to own the freehold and each flat owner has 1 share.
I only recently became aware of the rather drastic implication for the freehold of having no directors.
TBH I had no idea of the implications of agreeing to be a volunteer director 23 years ago.
Past directors have had the luxury of selling their flat and simply resigning. I'd like to do the same but that would leave the other director last man standing and I wouldn't want to leave him in that position.
If he were to resign I'd be last man standing and I guess I would then find it very difficult to sell my flat when I disclose to the potential buyer that my departure would leave the Man Co. with no director.

Reply to the comment left by RichM at 14/04/2023 - 18:37
I would check the Articles of Association to find out the restrictions of who can/can't be a director.

You might be able to appoint a 3rd party as sole director (though make sure you understand how they can be removed).

Reply to the comment left by Ian Cognito at 14/04/2023 - 18:50
Hello Ian,

Who might consider being a 3rd party director, assuming it were permissible?
Is it the kind of thing that a managing agent might include in their service?

It depends on what Company Articles say.
The .company is a separate legal personality to which directors owe legal duty under company law.
Directors do not owe duty to the leaseholders

Reply to the comment left by RichM at 14/04/2023 - 19:48
Yes, I would have thought the Managing Agent is a possibility.

Also, whoever provides does the company function (even if no appointed CS), such as an accountant.

Reply to the comment left by RichM at 14/04/2023 - 19:48
Good morning Rich,

As everyone has already advised, you will need to have at least one director.

A good Managing Agent will ensure the sole director will only need to be contacted on rare occasions - once or twice a year to discuss plans for the next year, etc.

I own and operate a block management company, focussing on small blocks. We also provide secretarial (and director roles in rare circumstances such as yours).

If you would like to discuss some options further, please feel free to drop me an email at property.management@xavi.co.uk

Reply to the comment left by RichM at 14/04/2023 - 19:48
Ideally it should be someone independent from the MA so that person will act as client/ oversight.

The Articles may require more than one but you can check that. They may probably also need to be a shareholder. The directors do owe duty to the leaseholders inasmuch as they are also shareholders of the company and they have obligations under the lease as representatives of the Lessor/Freeholder
@Mervin SX - where are you based?

Looking at your requirement for MA, you may find that your cleaners or other regular service trades will be a useful source of references - after all, they probably work at serval blocks managed by various MA and can tell you which seem to be better managed.

I was a director of the freehold company for a flat we sold. Their M&A had no requirement for directors to be an owner of the properties.