Influencing the Management of Your Block - Becoming a Director

by Adam New

Many residential blocks of flats have a Resident’s Management Company (RMC) or a Right to Manage Company (RTM) set up to allow property owners to run the management of the block.

Ordinarily, each property owner is given a share in the company, with a voting right and the right to become a Director.

Becoming a Director of your RMC or RTM is the best way of influencing the management of your block or estate and scrutinise your Managing Agent.

Often, property owners do not understand that there is a RMC or RTM in existence or that they have the right to become a Director of the site. Most Managing Agents do not communicate this as it often means more scrutiny.

The role of the Director is to provide management direction to the Managing Agent and to oversee that the Managing Agent is performing to the standard required. It is important to note that a Director is under a duty to act in the best interests of the RMC or RTM and all of the property owners.

As a Director you will be able see information that is otherwise difficult to get hold of, such as financial information on how the service charges are spent, or the quotations provided by service providers. Ultimately you will have the power change your Managing Agent if you wish.

While there are responsibilities that come with being a Director, these are diluted due to there being a Managing Agent in place that deals with the day to day operations of the RMC or RTM. Providing that you do not operate outside the terms of the building’s Lease, or the company rules, such as contracting with suppliers for things that are outside of the service charges (a Director ordering a chandelier for the communal hallway for example) there will be minimal risk of incurring any personal liability.

If you would like to understand the implications of becoming a Director, or would like to know if your block or estate has an RMC or RTM, do not hesitate to contact us.

RMC, RTM, Right to Manage Director, RMC

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