Kicking Out Management Company - Do We Need To Form Own Company First?

go4it

In our small flat complex we are trying to kick out the current management company. We have found another company who we want to take over. Over half of us are in favour of this move.

I'm hearing different views of what to do next...

Some people say we have to form a new company ltd by guarantee, then apply to kick out current management company.

Others say that as flat owners we should have shares in the current management company and therefore we use our power to appoint a new management set up. No company formation is needed.

Does anyone know which is right?

brooksy69

Not going to say whats right or wrong, but lots of info can be found here:
http://www.lease-advice.org/

There is a large section on 'right to manage' as well as other stuff (buying freehold etc etc). Also, there was a thread on this about a year ago (I am sure someone will be along to correct me, or even point it out) - maybe do a search for it.

Will follow this with interest - maybe come back and report how you got on etc, as I am gunning for this in our flats (but everyone is very apathetic!)

martinman3

go4it wrote: »

In our small flat complex we are trying to kick out the current management company. We have found another company who we want to take over. Over half of us are in favour of this move.

I'm hearing different views of what to do next...

Some people say we have to form a new company ltd by guarantee, then apply to kick out current management company.

Others say that as flat owners we should have shares in the current management company and therefore we use our power to appoint a new management set up. No company formation is needed.

Does anyone know which is right?

You would be amazed how many home-owners don't seem to know if they have a share of the freehold or not. Basically, when the property was sold if it did not mention a share of freehold then you don't have one.

In this case you can collectively with your fellow leaseholders either purchase the freehold or acquire the Right To Manage. Both options would require forming a company and it being limited by guarantee instead of shares makes life a little easier.

Sometimes developers can give leaseholders a limited number of shares in their own management company which manages the property to give them a voice but without any real control. This is not the same as previous two options as any representative of the leaseholders could be out-voted(ignored) on important issues.

ethansmum

We own a house on a new development that contains a number of 'greens'. Each house has a share of the ownership of the greens. The management has just been handed over to the homeowners from the developer.
One of the residents became the chairperson (the limited company had already been formed by the developer-) and my DH became the treasurer. They are both directors of the limited company.

So i would say that the residents have the say , as shareholders, as to who runs the management.

hth Tracy