Do you know the rules about running a flat management company?
Yesterday we blogged about ways we can help residents living in smaller blocks with their property management needs. More on that tomorrow. Today we’re highlighting a new Companies House campaign that aims to help anyone who is setting up or running a flat management company get it right.
Did you know that you can be banned (‘disqualified’) from being a company director if you don’t meet your legal responsibilities and that anyone can report a company director’s conduct as being ‘unfit’.
‘Unfit conduct’ includes:
- allowing a company to continue trading when it can’t pay its debts
- not keeping proper company accounting records
- not sending accounts and returns to Companies House
- not paying tax owed by the company
- using company money or assets for personal benefit
Flat management companies are set up by residents to manage the communal areas of their block and to maintain the condition of the building. The residents of the property are usually the directors and shareholders of the company but they don’t always understand their obligations under the law. For example, management companies must file accounts with Companies House every year. But this often leads to confusion over who’s responsible.
So Companies House has come up with an online tool that helps directors understand what they need to do to run their company efficiently, fulfil their duty to shareholders and avoid fines or being disqualified. It’s completely free, works on any device and can be completed in just 25 minutes.
Obviously the tool doesn’t replace legal or professional advice – that’s where companies like Ringley come in. But the new tool should help people who want to find out the basic information about running their management company. For more complex help or guidance, we’re here to help. So contact our experienced teams of legal and property advisers. They’re ready and waiting to help you.
If you are reading this in Scotland, the rules are different. So click here to see the Scottish government’s guidance on property factors.
Author : Maryanne Bowring
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