18:43 PM, 27th November 2013, About 9 years ago 3
I have become involved in a dispute with Freehold Managing Agents and seek advice from 118 readers.
The base of the scenario is a residential housing estate where each property owner is a shareholder in the Management Company, it is a mix of private and landlord owned houses. The Management Company is responsible for maintaining the communal areas of the estate. The Management Company has, via its Director and Company Secretary appointed a Managing Agent. The Managing Agent has been responsible for issuing the invoices for the service charge and preparing the accounts etc. Which should all be very standard.
However, the Managing Agent has just informed the shareholders the current Director’s tenure is at an end and new Directors must be appointed to avoid the company being ‘struck off’. In addition, they claim they are owed fees & wish to resign. The Managing Agent has stated that they will not handover any records or documentation until said fees are settled.
Can a Managing Agent legally retain company documents, bank statements and accounts, belonging to it’s client?
Do documents prepared by the Agent i.e database of shareholder payments belong to the Agent or the Company?
If the Management Company has no funds to pay the Agent because the Agent has failed to collect or pursue the monies due, are they in breach of their contract?
At present it is unclear what information the Director and Company Secretary have, although this is being pursued.
How do the shareholders move forward?
Any advice would be greatly appreciated.
Previous ArticleWould you invest in Manchester or London property?
Next ArticleHow should I deal with a down valuation?