How far back can I go to get copies of accounts from a management company

jmf76

I have been reading the LEASE website but was hoping for some clarification on a couple of points...

I have owned my leasehold flat for just over 2 years now and we use a management company to look after the upkeep of the building. I have never received a year end account of what the MC has spent my service charge on (although I've received the invoice for payments like clockwork ) and am wondering if I can get copies of these for all years (effectively last 3 years worth) I have been owner of my flat or only for the last year.

Although I received a request to become director of the company that would maintain the apartment block (which at the time I couldn't commit to) a couple of years ago, I have never received a invite to an AGM to discuss matters concerning my flat and the apartment block and from discussions with fellow owners no-one ever has. Just because I decline to become a director should the MC still be obliged to arrange an AGM every year and invite all owners whether directors or not to it?

martinman3

Section 21 of the Landlord and Tenant act 1985 allows you to request service charge accounts in respect of the last accounting year or 12 months. It does not require them to be sent automatically, but when we were using managing agents we always received them as our management company was their customer and if they didn't they would have lost our business. If your company manages the building itself it should not refuse to provide accounts for the period you owned the flat as you are a shareholder (or you could get nasty by calling an EGM, removing the directors etc)

Previously all shareholders must be invited to an annual AGM unless a resolution has been passed to dispense with AGMs. The Companies Act 2006 has made AGMs unnecessary but you can still have them if you wish. Previously, if companies did not hold AGMs when they should have done it was an offence but if those not invited did not complain who would have known about it ?

jmf76

I received a letter back stating they were going to arrange an AGM for this month and bring along copies of the accounts but have heard nothing since. Also we currently have no directors of the company so need to find out my next step. Can we demand the accounts? Can we demand an AGM? As we have no directors can we still get rid of them?

SouthCoast

Copies of the companies accounts can be downloaded from Companies House for £1.

http://www.companieshouse.gov.uk/

martinman3

Prior to 6th April 2008 your company required at least one director and a company secretary and it is the secretary who is responsible for arranging an AGM. After that date the company secretary is not required as per Companies Act 2006.

Assuming that you are a shareholder, normally if you are not happy with the company secretary then you would call a Extraordinary General Meeting by notifying the company secretary of your special resolution to remove them from office and it would be voted on at the meeting. However, as you say that you don't have any directors the company secretary is the only officer of the company and currently the only person able to deal with Companies House and HMRC.

You really need to use the Companies House website to download the annual return/appointments information for your company to find out what is going on. http://www.companieshouse.gov.uk/WebCHeck/findinfopage/

Once you have found the company in the database, click on it and then on the "Order information on this company" link. You will then have the option to order "Company accounts", "Annual return", "Appointments report" and I suggest you get all three, they are £1 each and, once paid for, save them to disk.
The Return will show all the latest shareholder information and I assume that the Appointments report will show the directors and company secretary if not shown in the Return.

Once you have this you will know if there IS a director or maybe the company secretary is also a director or a leaseholder is a director but doesn't know it. Only then would I be able to suggest a plan of action.

jmf76

Hi, thanks for all your help so far.

I received a letter from the MC stating there were currently no directors, however I've now got the details from Company House - MC are appointed Secretary with another person whose name I do not recognise. Also the following directors are appointed - the MC (only appointed 30/01/2008) the MD of the MC ( recognise his name) and 2 others names i don't recognise but on the annual return one has occupation of Director, the other Property Management (MC employee?)

Does this help? (I'm itching to draft a nasty letter demanding an EGM - just want somebody at their end to do something!!!)

martinman3

Although I have never download the Annual Return from the Companies House site I have filled them in and there should be a list of shareholders in addition to the list of directors/secretary.

If your name is not on there, which now I suspect it is not, then you are not a shareholder and that would lead me to believe that the MC is not a Residents Management Company but perhaps they invited you to be a non-executive director to liase with them as a point of contact. If that is the case then there is little you can do that you are not doing already.The law states that you can request a summary of service charges accounts, for the last accounting year or 12 months, from either the landlord OR the managing agent.

Is the freehold owned by this same company ? If not you could sent a request to the landlord instead. The demands for service charges must show the name and address of the landlord (freeholder).

If they don't then you can get the freeholder's name from the Land Registry website for £3, enter your property details and click on the "Information available" link for the "Freehold" entry, select "Title Register" and the "Proprietor" shown in the document will tell you.
http://www.landregistry.gov.uk/www/wps/portal/FindAProperty

Did you purchase the flat in the belief that you would be a shareholder in either a Residents Management Company (share of freehold) or a Right To Manage Company ?

SouthCoast

The £1 download of the shareholders in my management company runs to 64 pages!

And the company has just sacked the managing agents and appointed new ones.

jmf76

Hi, thanks for all your help so far martinman3

On the Appointments report it states under 'Last Bulk Shareholders List': Not available and I don't see my name anywhere on the documents.

However on a letter received from the MC about 6 months after I moved in it states that all lessees of the buildings are shareholders in the company (of which I am one) and they would like to offer us the chance to become directors in the company (which at the time I didn't take up) - shall have another look at my other documentation.

The company who built the properties is the freeholder.

Did you purchase the flat in the belief that you would be a shareholder in either a Residents Management Company (share of freehold) or a Right To Manage Company ? - To be honest I didn't think about this at the time and it wasn't a concern... hindsight is a wonderful thing...

I shall give them a call tomorrow to see if I can find out any more about them arranging an AGM as well as seeing if I can find any more documentation.

jmf76

SouthCoast wrote: »

The £1 download of the shareholders in my management company runs to 64 pages!

And the company has just sacked the managing agents and appointed new ones.

Crikey SouthCoast, my Appointment report was 5 pages, annual return 5 & accounts 6 - at least you got your £1 worth!!!

brightonman123

you should be getting at least a summary of expenditure, and any balancing charge / surplus that would be carried forward.. give the agents a ring and if they can send a copy, or even if you can go and view the accounts- they are obliged to allow this, at mutally agreeable time- would also give you a chance to check out their premises / operation, and seewhere the management fees get spent!