Right to manage company adding a director?

Right to manage company adding a director?

0:05 AM, 7th November 2023, About 6 months ago 11

Text Size

Hi, We have a RTM (Right to Manage) Ltd company running our block, of which out of the 12 properties, 6 owners are directors who set up the company and paid all the fees to take over – approx £4k.

My question is, if someone existing or a new owner wants to be a director, can the cost of setting up the company be divided by 12 and the new director pays for his/her share and that money returned to the original directors?

Not really sure of the way forward as it seems unfair if the original directors have paid out all the money for others to benefit from.

Everyone was asked at the time to join the RTM so it’s not been formed behind anyone’s back.

Thanks for reading – I would appreciate any help!

Thank you,

Derek


Share This Article


Comments

Kizzie

9:01 AM, 31st December 2023, About 5 months ago

Depends if the lease contains clauses referring to costs and expenses in maintenance and proper running of “the property “ . “The property “ are key terms and if included generally in older leases then ground rent and costs of service of s 166 clra notice can be included in service charge.
In newer leases then gr and costs of service and collection must be by other means.
Collingwood v Carillion
Development Eastbourne

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now