Property Management / Freehold Company dispute

tomp2494

Hi.

I am a director of a company which owns the freehold to my flat.
 There are 3 flats in total, and including myself, 3 directors, 3 flat-owners. 

A gulley requires repair. 
2 of the 3 directors, myself included, have agreed on a company to complete repairs. I got 3 quotes for the work. 
One of the directors disagrees with the selected firm and is refusing to pay her share of the cost.
Because of this, and with agreement with the other director, I cancelled the work and asked her to find alternative quotes to which she has not.  
What do I do now please as the work needs to be done! 

DullGreyGuy

tomp2494 said:

Hi.

I am a director of a company which owns the freehold to my flat.
 There are 3 flats in total, and including myself, 3 directors, 3 flat-owners. 

A gulley requires repair. 
2 of the 3 directors, myself included, have agreed on a company to complete repairs. I got 3 quotes for the work. 
One of the directors disagrees with the selected firm and is refusing to pay her share of the cost.
Because of this, and with agreement with the other director, I cancelled the work and asked her to find alternative quotes to which she has not.  
What do I do now please as the work needs to be done! 

What do the articles of association state about how decisions are made and what happens if a unanimous agreement cannot be reached?

tomp2494

It doesn't say anything about how to get payment if one refuses to pay 

eddddy

tomp2494 said:

It doesn't say anything about how to get payment if one refuses to pay 

That's not really the right way to look at it. (If somebody is refusing to pay money they owe, you can take them to court.)

The issue is more that the 3 directors cannot agree on what work should be done and/or who should do it.


It's likely that the articles of association say that decisions can be made by a simple majority vote e.g. 2 votes to 1. If that's the case, 2 of you can vote to repair the gulley.

But if the 3rd person isn't going to cooperate, you'd probably have to do a section 20 consultation. That might take 6 months, and you might want professional help with that, to make sure it's legally watertight. So that could add a big chunk to your costs.


Maybe you could explain to the 3rd flat owner that if they don't cooperate, the result will be delays and more costs to be shared between the 3 of you.