Finally, there is hope for self managing blocks
The Ringley Group, Chartered Surveyors and Managing Agents creater of the UK's 1st on-line accountant and property manager, www.leaseholdersupport.co.uk reports that most small flat management companies are probably not complying with the Companies Act, BUT THERE IS HOPE!
A Residents Management Company (RMC) is a formally constituted company just like ICI or BT, it therefore has a duty, unless specific resolutions have been passed, to hold an Annual General Meeting at which the statutory business of the company would include presenting the accounts to the shareholders as well as matters such as election of Directors. A recent survey by the Ringley Group confirmed not only that the legal paperwork involved in self managing ranked in the top 4 fears for flat owners but also that over 60% are currently failing to deal with the complexities of running a company effectively, let alone ensuring that AGM's are held when they should be.
The Ringley Group reports that it expects sighs of relief from small blocks when from the 1st April 2007 the Companies Act 2006 finally brings some sensibility into play.
From April 1st 2007 the following applies:
1. A private company will not be required to appoint a secretary and all needed is one person.
2. A private company will not be required to hold Annual General Meetings unless it wishes to.
3. The director would not need to disclose his home address in the Company Annual Return when filed at Companies House.
4. A private company will be able to provide financial assistance for the purchase of its own shares thus facilitating takeovers etc.
5. Under the new rules it will no longer be necessary to apply to Court before repaying capital back to the shareholders.
6. With two exceptions, a private company will be able to pass all its Resolutions by written resolution, thus obviating the need to hold general meetings. In addition, it will no longer be necessary for all shareholders to agree to a written Resolution before it is passed.
7. Companies of all sizes will be able to make use of electronic communication g emails and websites, to communicate with their shareholders etc.
www.leaseholdersupport.co.uk has been developed by the Ringley Group over the last two years to provide a solution for the 2/5ths of the block management market that ARMA (the Association of Residential Mangaing Agent's) believes self manage in one form or other. www.leaseholdersupport.co.uk offers two packages for small blocks: Block Care 100 which is no win, no fee litigation on service charge arrears plus every conveivable management headache solved by step by step guides, factsheets and interactive tools and Block Care 200, which is Block Care 100 + service charges demanded, legal and company formalities dealt with as well as FREE year end service charge accounts. Test the Block Care Guarantee cheaper than a managing agent or your money back!! at www.leaseholdersupport.co.uk.
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