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Long Lease Questions – EGM, Lease and Service Charges
Emielou
Posts: 36 Forumite
Hello, I hope someone can help. I live in an apartment. Dwelling Holders are Members of the Company and the Company owns the Freehold. 2 of the Directors are Proxy Directors in that they do NOT own a property and are directors of the managing agent. The Company is badly run resulting in dwelling holders paying an extra £3k in 2 years in extra service charges. :mad:
1: How many requests required to force an EGM?
We want an EGM so that we can vote in 2 new Directors (myself and a neighbour) we plan to nominate each other.
The Articles and Associations state: "The Council may whenever they think fit convene an Extraordinary General meeting and Extraordinary General Meetings shall also be convened on such requisition or in default may be convened by such requisitionists as provided by Section 368 of the Act."
A Proxy Director (also director of the managing agent) said 20% of residents need to request and attend an EGM. I thought the Companies Act Section 368 states 10% and that the updated Act 303 states 5%. Someone else told me it was 15%. Does anyone have a definitive answer?
2: Can an Estate be split so that it is funded separately if the Freehold is held by the Company and the Company is made of the Dwelling holders. Surely that means we collectively hold the Freehold and therefore the Lease terms and can alter the Lease terms if the majority of us vote for it?
The reason we want to make the change is because there are 2 distinct blocks with distinct communal areas. The smaller block is costing much more in repairs but only represents 26% of the funding. Service charges are paid in proportion to dwelling space.
The Lease states that 'if at any time including retrospectively it should become necessary or equitable to do so the management company acting reasonably shall recalculate on an equitable basis the % figure in the Leasee's proportion appropriate to all units comprising the estate."
Again, if this is possible how would we go about it?
I hope someone can help as I’m getting to the end of my tether with regards to the Service Charges and management of the Company.
1: How many requests required to force an EGM?
We want an EGM so that we can vote in 2 new Directors (myself and a neighbour) we plan to nominate each other.
The Articles and Associations state: "The Council may whenever they think fit convene an Extraordinary General meeting and Extraordinary General Meetings shall also be convened on such requisition or in default may be convened by such requisitionists as provided by Section 368 of the Act."
A Proxy Director (also director of the managing agent) said 20% of residents need to request and attend an EGM. I thought the Companies Act Section 368 states 10% and that the updated Act 303 states 5%. Someone else told me it was 15%. Does anyone have a definitive answer?
2: Can an Estate be split so that it is funded separately if the Freehold is held by the Company and the Company is made of the Dwelling holders. Surely that means we collectively hold the Freehold and therefore the Lease terms and can alter the Lease terms if the majority of us vote for it?
The reason we want to make the change is because there are 2 distinct blocks with distinct communal areas. The smaller block is costing much more in repairs but only represents 26% of the funding. Service charges are paid in proportion to dwelling space.
The Lease states that 'if at any time including retrospectively it should become necessary or equitable to do so the management company acting reasonably shall recalculate on an equitable basis the % figure in the Leasee's proportion appropriate to all units comprising the estate."
Again, if this is possible how would we go about it?
I hope someone can help as I’m getting to the end of my tether with regards to the Service Charges and management of the Company.
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