Can I become a shareholder in Right to Manage Company?

by Readers Question

11:40 AM, 8th May 2017
About A year ago

Can I become a shareholder in Right to Manage Company?

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Can I become a shareholder in Right to Manage Company?

In 2014 I bought a flat with a 999 year lease. I am the only owner without a share in the freehold. A Right to Manage company had just been set up that excluded the person I bought the flat from as he was the freeholder and they took him to Tribunal to gain the Right to Manage.

There are five flats in total and the other four flats are shareholders in the company. Two of the flat owners are Directors and left the building uninsured last year (we have only just found this out) and there are other issues regarding their management. The other two shareholders and myself want to have a say in the running of the company.

Can the company exclude me from joining? If not, how do I go about applying to become a shareholder?

Many thanks

Katy



Comments

Bridget Price

13:26 PM, 8th May 2017
About A year ago

You can't be excluded, everyone with an interest including the Landlord has to be invited to join the RTM company. More information is available from the Leaseholders Advice Service, just do a Google search.

Katy Kite

13:42 PM, 8th May 2017
About A year ago

Thanks so much for replying Bridget. I had a look at the Leasehold Advisory Service and that was what I thought, but I wondered if there were any exceptions. I've never received a letter of invitation and have only just realised that I don't need to be a freeholder, that I can be a 'qualifying tenant.' However, before I applied I wanted to make sure there weren't any exceptions.

I know the freeholder that I bought my flat from didn't maintain the building properly and I wondered if he was excluded on that basis. In any event, when I bought the flat he wasn't a shareholder.


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