Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I would appreciate your assistance on helping resolve the following issue. I do believe we will need to take professional legal advice and would welcome recommendations on who could help.
A management Company was set up to buy the freehold of a block of 6 flats in 1999. Four owners of the flats purchased 100% of the Freehold, each owning 25%. The other two owners declined.
A company was incorporated to set up the ownership and shareholding. The day to day Facilities Management of the block of flats was assigned at their request to one of the Shareholders (Shareholder A) . They were responsible for producing accounts settling bills and ensuring all legal compliance was taken care of.
To cut a long story short, shareholder A decided to sell a 1/6 share of the freehold when one of the two flats that did not buy the original shareholding was sold.
The agreement to sell a share of the freehold was not discussed or approved with all of the other shareholders. A consideration was paid which was considerably lower than what would be considered market value. A board meeting to seek approval or authority for the sale was never called.
Hence My question is what is the legal standing of the sale, a share certificate has been issued again signed by Shareholder A the monies have been paid to Shareholder A who claims the money has been used in paying for Facilities management services. Which could be true but as they have never kept proper records its very difficult to tell.
Can Shareholder A act on behalf of all the other shareholders without their consent or have they merely sold a portion of their shareholding and the others are intact?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More