Legal implications of being an unpaid director in a management company for a block of flats

spiritus

subjecttocontract said:

I think you're missing the whole point. You & your fellow directors don't need to know all the 'necessary fire & safety regulations required'......like me, you have experts to deal with that for you. The assessors (assuming they were suitably qualified )will be responsible for the report and your block management would be expected to deal with the results. But as directors its incumbent on you to read the report, understand it and follow up on it's requirements and recommendations, otherwise what's the point of having directors.  Being a director requires you to apply common sense and due diligence among other things.

Because there has to be a certain level of trust that the managing agents are doing their job too. I completely accept that if that trust becomes fractured then it changes the relationship but the agents are supposed to ensure the buildings are compliant

subjecttocontract

I'll make a final attempt to better explain my view.

You seem to be under the impression that because you have a block management company that they deal entirely with matters such as an FRS because they are technical, experienced and you don't have the knowledge. Well, yes, that is true but only to a point. The example you have given us shows how flawed that approach can be and the result of dealing with it your way i.e. A big surprise 2 years later !

Had you read the report 2 years ago you might have understood the findings, assumptions, errors, work required etc et c and could have asked your block management to estimate costs and explain how they intended to deal with the various aspects of the report and probably resolved the issues You don't need technical knowledge to challenge findings of work required or assumptions.

mlz1413

From my understanding Directors are ultimately responsible.  But it is a fair point that you are unpaid and therefore not benefiting from this position. 

I own a flat in a block, the owner and landlord let the block get a bit tatty, nothing unsafe but it did require work as it was on the edge of unsafe. So the landlord chose a managing agent.

The managing agent was brilliant and lots of work was done. That meant the flat owners having to put their hands very deeply into their pockets, but every was worth it as the block is now much better.

Fast forward 10 years and the managing agents have had a change of staff, I can't work out if they are lazy or incompetent so I have assumed both to be true.

Apparently the landlord has mitigated his responsibilities to the managing agent. But neither party will let any flat owners on to board of the limited company that runs the block.

Therefore we as flat owners can't call an AGM. We can't insist on updates. We have no say on the spending or lack of.

We can ask for copies of the accounts and I have done that but it is all historical. 
So now with all the Renters Rights changes I've decided to give up and sell the flat.

As a director you do ay least have a say in what happens in your block, but if you are doubting the agents then you need to hold few meetings and get a plan of action, which may involve moving agents.