I am a new Director of a Property Management Company (PMC) which has been set up as a Private Ltd Co to manage a block of flats with 90 units. We have been told that all meetings of Directors are informal, no minutes are needed, no voting needs to take place on decisions taken.
Meetings are a free for all basically with one person issuing the instructions to the management company, despite there being 6 Directors.
This does not seem to accord with the 2006 Companies Act regarding private Ltd Co’s. Can anyone confirm if this way of running things is correct.
From .Gov >> https://www.gov.uk/set-up-property-management-company
“Set up and run a flat management company
You can set up a limited company – sometimes called a Right to Manage or flat management company – so residents can jointly run a property, eg a block of flats.
Set up the limited company
You must follow the normal process for setting up a private limited company.
The Leasehold Advisory Service has detailed advice on setting up a company to manage property, including dealing with the landlord.
Running the limited company
All the residents who have agreed to be directors will have legal responsibilities.
You must also send Companies House:
Tax for the limited company
You must send a Company Tax Return to HM Revenue & Customs (HMRC) no later than 12 months after the end of the company’s first financial year.
After you do this, HMRC may decide to treat your company as ‘dormant’ – this means that they wouldn’t expect your company to send Company Tax Returns for later years.
As a director of a limited company, you must:
You can hire other people to manage some of these things day-to-day (for example, an accountant) but you’re still legally responsible for your company’s records, accounts and performance.”