RUGBY Offices

Private Client Department, Address: 16 Church Street, RUGBY, CV21 3PW, Telephone: + 44 (0) 1788 579 579, Fax: +44 (0) 1788 570 949

Conveyancing Department, Address: 26 Regent Street, RUGBY, CV21 2PS, Telephone: + 44 (0) 1788 551 611, Fax: + 44 (0) 1788 551 597

Commercial/ Wills, Trusts & Probate Departments, Address: The Robbins Building, 25 Albert Street, RUGBY, CV21 2SD, Telephone: + 44 (0) 1788 579 579, Fax: + 44 (0) 1788 552 888

LONDON Offices

2nd Floor Berkeley Square House, Berkeley Square, London, W1J 6BD, Telephone enquiries: +44 (0) 2078876590, Fax number: +44 (0) 207 8876001

BANBURY Offices

Strathmore House, Waterperry Court, Middleton Road, BANBURY, OX16 4QD, General Telephone enquires: + 44 (0) 1295 270999

Landlord and Tenant

A formalised RMC is very different to an informal residents association: an informal residents association will not be a party to the lease and will have no legal status.  A formalised RMC will however carry legal status as it will be party to the lease and have obligations it will be required to perform under the lease. 

Typically under leases, each flat owner will be required to become a member or shareholder of the RMC.  The shareholders will then in turn appoint from amongst their number a Board of Directors and it will be the directors that deal with the day to day running of the RMC. 

It will be the directors of the RMC that will be responsible for ensuring the RMC is doing the job that the RMC is meant to be doing and for complying with the relevant pieces of legislation that it will be subject to. 

Running a Residents Management Company (‘RMC’) can be a fairly complex task as the RMC will be subject to a wide range of influences which directors will need to be aware of such as:

  • the restrictions (if any) in both the freehold and leasehold titles
  • any superior titles
  • the leases and any estate regulations
  • any planning consents
  • any management contracts
  • trustee obligations under the Trustees Act
  • certain duties under the employment legislation (caretakers, porters etc).

The directors of any RMC will also need to be aware of and comply with the formalities required by Companies House for example the directors will need to:

  • ensure that the RMC’s Memorandum and Articles of Association are properly used and adhered too
  • filing Annual Returns
  • keeping statutory books/registers up-to-date
  • updated Companies House on the membership
  • filing of certain Resolutions

Health Warning!

The consequences of failing to comply with the formalities of Companies House, duties prescribed by the Trustees Acts and the Employment legislation can be potentially disastrous.  Directors running an RMC who fail to execute their duties with care and diligence could mean the RMC is stuck-off the Companies Register, management reverting back to the Landlord or the Crown (if the freehold does not vest in the RMC) and Directors becoming liable for any breaches, personally. 

Specialist legal advice should always be obtained when running your RMC.  At Brethertons we work hard to ensure our clients expectation are met. 

Brethertons’ specialised Landlord and Tenant Team can assist your RMC will all aspects of property, litigation, employment and company law that specifically affect RMC’s daily.  Our team also offers RMC’s a tailored-made Company Secretarial Service to best suit the needs of RMC which includes:

  • A Company Administration Package: our team will import of your RMC records directly from Companies House to our Company Secretarial system and maintaining your RMC books electronically with remote access for you
  • Company Health Check Service: providing your RMC will a review of the company books to ensure the records are accurate and up-to-date
  • Archiving of Company Documentation: All your principal documents e.g. employment contracts, leases, freehold and leasehold titles etc, can be stored by us and accessed by your electronically.   

Roger Hardwick

Roger Hardwick
Solicitor
Tel: (01295) 661 453
Email: rogerhardwick@brethertons.co.uk