Residents Management and Right to Manage Companies
What are Residents Management companies?
Residents Management Companies are formed by owners of flats wanting to manage the building they are in. Common examples are houses that have been converted into flats. Each flat owner will become a shareholder in the company which will manage the freehold of the whole building. This can then be used to manage the communal areas of the building such as stairways, hallways and outside areas.
By having one share per flat, the owners have an equal share and control of the company. When someone sells their flat the share will pass from the old owners to the new owners so that only the people living in the building have a say in the running of it.
What is needed to form a Residents Management company?
What are Right to Manage ('RTM') companies?
RTM companies are for long leaseholders in blocks of flat to take over the management of their building. These were introduced as a consequence of the Commonhold and Leasehold Reform Act 2002.
A RTM usually takes the form of a limited by guarantee company. This requires flat holders to become members of the company rather than shareholders. When a member sells their flat they would resign from the company and the incoming flat owner would then take their place as members in the company.
What is needed to form a Right to Manage Company?
What comes in the pack?
Residents Management Companies are formed by owners of flats wanting to manage the building they are in. Common examples are houses that have been converted into flats. Each flat owner will become a shareholder in the company which will manage the freehold of the whole building. This can then be used to manage the communal areas of the building such as stairways, hallways and outside areas.
By having one share per flat, the owners have an equal share and control of the company. When someone sells their flat the share will pass from the old owners to the new owners so that only the people living in the building have a say in the running of it.
What is needed to form a Residents Management company?
- A suitable name for the company. This normally takes the form of the name of the property with Management Company Limited after it.
- The address of the property and what it is likely to manage
- A minimum of one officer (i.e one director)
- The shareholders or Members (i.e each flat owner(s) and their address) (depending on whether the Company is limited by shares or by guarantee)
- A registered office
- L&A Agency Services will provide suitable Memorandum and Articles of Association.
- Cost £168 inclusive of VAT
What are Right to Manage ('RTM') companies?
RTM companies are for long leaseholders in blocks of flat to take over the management of their building. These were introduced as a consequence of the Commonhold and Leasehold Reform Act 2002.
A RTM usually takes the form of a limited by guarantee company. This requires flat holders to become members of the company rather than shareholders. When a member sells their flat they would resign from the company and the incoming flat owner would then take their place as members in the company.
What is needed to form a Right to Manage Company?
- A suitable name for the company. This normally takes the form of the name of the property with RTM Limited after it.
- The address of the property and what it is likely to manage
- A minimum of one officer (i.e one director)
- Details of the Members
- A registered office
- L&A Agency Services will provide suitable Memorandum and Articles of Association.
What comes in the pack?
- A printed copy of the Certificate of Incorporation
- 4 bound copies of the Memorandum and Articles
- Company Register
- Change of Accountancy Reference date form
- E-filing Code for easy online filing