Managing Agent spending reserves without permission

laura_p_s

Hello kind people!

My block of 6 flats is a shared freehold among the 6.  We have a limited company that is set-up to operate the freehold and 4 of the 6 owners are Directors of the limited company.  We use a managing agent to manage the block.  Last year the managing agents were were contacted by a non-director (but who is an owner who has share of freehold) who asked them to come and inspect a leak.  The property manager instructed scaffolding and repairs costing over £1500 and the first anyone else knew about the works was when the scaffolding started to go up on the building.  Is a Managing Agent supposed to issue a Section 20 even if they deem it “emergency work”?  The cost of these works does total just over £250 (not including VAT) per freeholder so the threshold financially is there to make it a Section 20.  I can find conflicting information about whether the Section 20 applies to Managing Agents.
Any clarity or knowledge would be gratefully received.
Thank you very much 🙏

tacpot12

Have a look here: Section 20 Consultation for Private Landlords, Resident Management Companies and their Agents - The Leasehold Advisory Service (lease-advice.org)

It appears that the Managing Agents are bound to give the same notice and consultation -  the fact they are appointed as agents of the freeholders doesn't get the freeholders out of consulting. 

Also this FAQ suggests that even emergency work needs to notified and consultated upon, unless the Management Agents obtain an agreement from a tribunal that this is not required: 

My landlord has said they will not consult under Section 20 as the works are urgent. Is this correct? - The Leasehold Advisory Service (lease-advice.org)

The Managing Agents should know all this, this is there business. Ultimately if the work needed doing, and could not be done from ladders, then the cost, were you to be notified, is likely to have been the same, so there may not be a lot to be gained from challenging this too hard.