Distinguishing Managing Agents from Management Companies

TBD

Managing Agents:

• generally for-profit
• almost never (ever?) public limited companies
• operate at multiple sites across the country
• would tend to have SIC codes like 68320
• individual homeowners would not be members/shareholders
• file accounts which show they are companies operating with employees, own assets and cashflow
• tend to have their own websites and branding

Management Companies (particularly Residents Management Companies):

• generally not-for-profit (company limited by guarantee, or company with shares but with a ban on profit distribution)
• articles of association restrict objects of company to managing/owning a specific site
• membership tends to be "referrable" to ownership of flats / houses at a specific block or estate; a very common pattern is for "dwelling" and "dwellingholder" to be defined in the articles, in relation to a specific site
• membership might not be easily able to be resigned/refused
• provisions for mortgagees and executors to become members if they end up owning the referrable home
• would tend to have SIC codes like 98000
• tend to be dormant companies without own assets, employees or cashflow
• tend not to have own websites or branding or contact information
• may well have a company name that reflects the site managed, e.g., "Little Bowden Rise (Market Harborough) Management Company Limited"
• may have "golden share" provisions that are triggered by home sales

MCs would tend be the customers of MAs; never the reverse