Retaining an RMC after management transferred to a RTM?
7:28 AM, 19th September 2017, 9 years ago
4
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At the moment we have a Resident’s management company (RMC) limited by Shares and management may be transferred to a Right to management (RTM).
This would potentially mean that the records of two companies have to be maintained.
Other than the fact that all the leases list the RMC as the management company is there any reason why the RMC should be retained or can it be dissolved ?
If so, to make life easy can we transfer all the shares into the name of the RTM?
Many thanks
David
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Previous Article
Should we have been given notice?
Member Since May 2015 - Comments: 2197 - Articles: 2
4:32 PM, 19th September 2017, About 9 years ago
I see no reason why your RMC company could not metamorphose into an RTM company. You would still have to go through the procedure outlined on the LEASE web site and instead of forming a new company you adapt the old. New prescribed Memorandum and change the name to the prescribed format.
You could even trade under the old name to make things simple.
Member Since November 2014 - Comments: 86
6:16 PM, 20th September 2017, About 9 years ago
Can I ask why the management need to transfer from RMC to RTM?
Member Since February 2015 - Comments: 46
10:10 PM, 23rd September 2017, About 9 years ago
Reply to the comment left by David Atkins at 20/09/2017 – 18:16
Because the developer i.e. freeholder would not give up the management without an RTM Co being formed, so we have two but the RMC is still under the control of the developer. He would give up the company which we could dissolve and then change the name of the RTM to match the leases.
Member Since May 2015 - Comments: 2197 - Articles: 2
10:40 PM, 23rd September 2017, About 9 years ago
Reply to the comment left by David Aneurin at 23/09/2017 – 22:10
The name of the RTM company is prescribed ” RTM Company limited”. You can however ‘trade as’ any name you wish and that name could be chosen to match the leases.
RTM companies are limited by guarantee not shares.