The Companies Act and Leasehold
Collective management of residential property in the UK relies on company law. This is so both for flats, and for houses on private ("fleecehold") estates.
There are three main types of company that could be involved:
- Right To Manage companies (generally known as "RTMcos")
- Commonhold Associations (here, "CAs")
- Residents Management Companies (known as "RMCs")
All of these are fairly normal companies under the Companies Acts; their membership will largely or wholly be restricted to homeowners in a particular territory, and their objects will generally be restricted to managing or owning common property on behalf of the company members.
RTMcos and CAs are strictly prescribed by statute and there is accordingly minimal variation in how they operate from site to site. All RMCs are basically sui generis. RMCs can amend their constitutions. RTMcos and CAs cannot, relying on the government to legislate to fix any problems that arise.
Abuses
Actual Companies Act violations:
- not registering members/shares
- fake shares
- proxy solicitation
- proxy notifications for GMs
- membership withholding
- misregistration of members
- non-removal of expired members
Main issue is conflict between company secretarial role and managing agent. Contemplated in the RTMco model articles.