The numbers are steadily rising of blocks of flats which are owned and/or managed by companies made up of the leaseholders. These are usually known as Residents’ Management Companies ("RMCs") or Flat Management Companies ("FMCs"). This note will refer to RMCs, even though it can be a misnomer as there are a lot of leaseholders who do not reside in their flats.
Many RMCs own their freeholds but it is not exclusively such companies who manage the blocks. Particularly in larger and more modern developments, the leases are frequently written on the basis that management will fall to the leaseholders, so that the RMC is a third party to the contract between freeholder and leaseholder or perhaps the RMC will be granted a head lease or a lease over the common parts.
Covering Topics
Overview
Types Of Company
The Role Of The Managing Agent
Duties Of Leaseholders
What Are The Distinctions Between 'Shareholder/Member' And A 'Leaseholder'?
Distinctions Between Service Charges And Company Expenditure
Personal Liabilities Of RMC Directors
Insolvency
Consultation On Major Works Etc.
The Powers Of A RMC: Recovery And Forfeiture
Conclusion
Chart Showing The Various Relationships
Resource
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