Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 3 weeks ago 48
I am a co-director of a RTM (Right to Manage) company of a development which is extremely challenging to manage. We are now at a critical phase – just about to start major works which will cost about £70K. We’ve been leading up to this point for the last 2 years and, needless to say, none of the other leaseholders (all landlords) never expressed more than a passing interest in the amount of work and effort involved in bringing us to this point.
We have a rare and very able property manager which we are very happy with and trust that he’s acting in the best interest of the site. By the way, if anyone wants a recommendation for a superb property manager (can’t share the area, PM me if interested), I’ll be happy to recommend him.
Anyway, the current works require a contribution of about £5,000 per unit and this has all been collected with minimum pain, thanks to our manager.
Now we have a situation whereby 2 of the other leaseholders are asking for an AGM with a view of replacing one or two of the current directors (myself and my co-director), claiming that we don’t have enough property skills.
The person suggesting this does seem to have plenty of hands on property experience and under normal circumstances, we would have been delighted to add him as a director or even stand down. This site has been a nightmare to manage and both of us can think of a million things we’d rather do with our time than to tackle all the problems it brings us.
However, this person is also extremely unpleasant to work with and we are concerned that if he comes on board, it would make things very hard indeed for everyone.
He has asked for an AGM, with a view of replacing one or both of us.
My questions are:
What are the procedures that the company has to follow to appoint another director?
Who needs to agree or disagree?
Do we need to have a majority vote?
Do we have to have a physical AGM?
Shareholders who didn’t attend the AGM, can they vote?
I suppose, the main question is – how do we stop this from happening?
Would appreciate any input.
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