Freehold directors removed me under company law and MOA?

by Readers Question

10:47 AM, 19th December 2016
About 2 years ago

Freehold directors removed me under company law and MOA?

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Freehold directors removed me under company law and MOA?

I have been ganged up on by two directors who are acting improperly and have conspired and colluded to remove me tactically under Company law and MOA (Memorandum of Agreement). This leaves me as a shareholder with no say in the management of my property. removed

I have now no say whatsoever and they are trying to limit my access to information and the management agent is ignoring me.

Anyone else with a similar experience with advice they could share with me on how to protect myself from being financially abused.

Milly



Comments

Kate Mellor

12:56 PM, 19th December 2016
About 2 years ago

Have you taken advice from the Leasehold Advisory Service?

Puzzler

10:52 AM, 21st December 2016
About 2 years ago

You don't say how you're being financially abused, nor how many flats there are and how many directors. In short they cannot legally remove you without a full shareholder's meeting and must gain a majority vote. If there's only the three of you, there's not much you can do. See this link, but please check it is up to date advice as I cannot confirm that.

https://www.rapidformations.co.uk/blog/can-i-remove-a-director-from-my-company/

LEASE should be able to advise

https://www.rapidformations.co.uk/blog/can-i-remove-a-director-from-my-company/

Gary Nock

9:37 AM, 24th December 2016
About 2 years ago

Puzzler is right and the procedure above has to be followed before you can be ousted as a director. A bit more information on whether not the company is a Right To Manage Company (RTM) or a Residents Management Company (RMC) plus number of flats etc would assist. You need to create a checklist of both your Mem and Arts director removal procedures and the Companies Act procedures as highlighted by Puzzler and see if they have followed them to the letter. Otherwise your removal is unlawful. If they have done it lawfully then remember you are still a leaseholder with voting rights. Normally if an RTM has an Annual General Meeting then all the directors resign and then get re-elected for the next year. If this happens then get yourself proposed, drum up support from other leaseholders and get re-elected. You can also be "disruptive" if that is the term by ensuring the directors are running the company and following all the leasehold rules and in particular the lease itself. Remember if the lease does not say something can be charged then it cannot be part of the service charge. Likewise if major works are done and the cost exceeds £250 per flat then the managing agent has to follow quite complex Section 20 consultation procedures. You can ask to see copies of receipts for work done. And if service charge demands do not follow a specific format and are accompanied by a Summary of Rights and Responsibilities in not less than 10 font then they are not legally due. All these things can add up to leaseholder being able to hold the directors and managing agents to account and prevent financial abuse. Do your research as Kate says at Lease.org and start quoting leasehold law. You would be surprised as to how many directors of RTMs and RMCs do not know it.


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