salsa-king

If yes,

I need to know about what criteria you need to be a Director of a Right To Manage company on a lease hold building.
Is there a maximum amount of properties in the building one director is allowed to have?

I've googled it with no real answer other than how to do a RTM.. which we already have in place (the last 7yrs)
Also spoke to the National Landlord Association, who wasn't 100% sure.. they advised seeking legal advise.


Thought someone on here may have the answer.

TIA

2pot

iTrader: (3)

The RTM company's 'Articles of Association' will contain the info.
Depends how the Company was set up. The safest way is to limit the maximum number of votes any owner may have, regardless of the number of flats they may own.
Appointment and removal of a Director will also be contained within the articles.

salsa-king

do you mean the one that 'we' have as an RTM company?

is there anything in the Landlord & Tenacy Act 1987 relating to it or the Commonhold & Leasehold Reform Act 2002 as i've been said it's in that but I don't understand how it's written lol
http://www.legislation.gov.uk/ukpga/1987/31/section/3
I've been said it's section 3.2

then http://www.legislation.gov.uk/ukpga/2002/15/section/74
section 74.1(a)

2pot

iTrader: (3)

Yes

salsa-king

That would mean than, unless it states in it there's no reason a person with more than 2 properties in the same building couldn't be a director of the RTM?

2pot

iTrader: (3)

Re: your second link - A flat-owning Company, post RTM, can be a member of the RTM company, but your RTM articles MAY exclude voting rights and/or membership from those with more than 2 properties. Or, limit the qualifying tenant to 2 votes.

The qualifying tenants, in the first link, are with regard to enforcing the initial RTM.

salsa-king

so the first link doesn't relate to it

and the 2nd link does, but means as a director of more than 2 properties you can't vote?
It doesn't mean you can't be a director then if you have more than 2 properties in the same building?

I need to be clear as the person who brought this up may have it wrapped around their neck, but it's causing a lot of trouble.


I need to see the RTM artical.
i understand the bit about the freeholder may be a member.. and understand if they owned multiple properties in the same building they would have voting rights that suite them.. and not the members.

2pot

iTrader: (3)

Your RTM articles might deny membership to anyone with more than 2 flats. In which case, that person would be barred from being a Director.

But, there may be a clause that allows a person of, particular skills, to be co-opted on to the RTM board, by the legitimate Directors.

salsa-king

I've just been on the phone to the lease holder advise service ( a free 15mins pre booked appointed)
Who said I'm a qualifying tenant to be a director.
and that.. this artical relates to the right of First Refusal and not RTM...
http://www.legislation.gov.uk/ukpga/1987/31/section/3

and as I am a qualifying tenant. I can be a director of the RTM
http://www.legislation.gov.uk/ukpga/2002/15/section/75



The company house article of association has nothing in it saying any additional stipulations on becoming a director other than ones we already know.

2pot

iTrader: (3)

I know, we've already covered this.

Your second link is not relevant.

Any member of the RTM company can put themselves forward, for election, by the membership, at the AGM. Or, be initially co-opted on to the board, by the existing Directors, and then stand for election at the next AGM.

I find it very hard to believe the articles don't cover those with more than 2 flats - it is a standard (very necessary) clause.

salsa-king

I've not found it yet in the article, but that may be when voting.

But nothing about being a Director of the RTM if you have more than 2 properties there.