Management Company struck off - what now?

sickpuppy32

Paulw wrote: »

But, at your management company AGM each year, do you not elect directors? Do you not vote on your budget? Do you not go through the management company independently audited accounts?

ah I see your presuming that i was dealing with non-criminals and those questions would be perfectly legit. we've had 2 AGMs in 7 years. Both were farces, management agent basically said he worked for builder and not us. Because they were chairing,t hey wouldn't let us ask questions on the financial irregularities, weren't allowed elect directors - they basically used the AGM as a tool to get us to give them money. We were given limited access to accounts and it seems from talking to the auditors, they were shown a different set of accounts. it was a farce basically

sickpuppy32

and by the way from my experience "audited" accounts tends to be nothing more than a box ticking exercise with no questions asked by the auditor

Paulw

Sounds like you're in one right mess of a situation.

I know in our development, for the first short while, the agent was appointed by the developer and we were told we had no say and couldn't elect directors. We quickly sorted that out, with us getting more information, specific details under the Companies Act, etc. We sent registered letters to the directors, contacted them at their listed addresses (their homes) and we continued over a short while to hassle them with legitimate queries until they started to listen.

Eventually realised that we weren't going to put up with them. We then called an EGM, elected new directors, removed the agent, enlisted the help and services of a new agent, and we took over everything. That was 6 years ago now, so you also now have the MUD to help you.

Using solicitors can work well too, but we found that just contacting them very regularly made it worth their while to hand everything over to us.

sickpuppy32

We were in the process of taking over the company but there was some stipulation that director had to be present at EGMs/AGMs. Also they wouldn't take registered letters. i'm meeting a solicitor tomorrow but it looks like it might be ok, because we have freeholds on our houses and the deeds refer to a management scheme ( not a management company), the striking off of the company should have no ill effect on us. People in my estate now can sell their homes with no lean on the houses. the county council and the receiver both were trying to foist the unfinished common areas onto us, now they have no option but to sort it out amongs't themselves

Paulw

sickpuppy32 wrote: »

i'm meeting a solicitor tomorrow but it looks like it might be ok, because we have freeholds on our houses and the deeds refer to a management scheme ( not a management company), the striking off of the company should have no ill effect on us.

That goes back to my first question after you posted.

You need to check the planning application/stipulations when the development was built. Your local planning authority will have those details. That would specify if a management company was formed, or what the status of your "management scheme" holds.

Your own contracts/deeds should also clarify this.

sickpuppy32

The planning permission does say something about a management company. However the county council have stopped putting that requirement for a few years now and have publically admitted it was a bad idea. The planning dept would have to come after us to restore the company, this would go against the wishes of residents and its doubtful they would pursue it or get anywhere.

Paulw

But the issue there would be maintenance of common areas and facilities - roads, public lights, common green area, etc. If the planning stipulated a management company, then the management company would be responsible for those and the council will never take charge. That may be alright in the short term, but would be a blocker for you to sell your property, and also could be a problem should there be any issues with the common area. Also, public lights, etc would be cut off if the management company does not pay the electricity bill. I've seen that happen.

You need to be very very careful and all residents should seek qualified professional legal advice.

While it may be against the wishes of the people, it will more than likely come down to what the contracts and documents say.

sickpuppy32

Paulw wrote: »

But the issue there would be maintenance of common areas and facilities - roads, public lights, common green area, etc. If the planning stipulated a management company, then the management company would be responsible for those and the council will never take charge. That may be alright in the short term, but would be a blocker for you to sell your property, and also could be a problem should there be any issues with the common area. Also, public lights, etc would be cut off if the management company does not pay the electricity bill. I've seen that happen.

You need to be very very careful and all residents should seek qualified professional legal advice.

While it may be against the wishes of the people, it will more than likely come down to what the contracts and documents say.

The council have committed to taking the estate in charge once it is completed and ready to be handed over. The common areas still belong to the developer and it is up to him ( and his receiver) to maintain them in the meantime - they have accepted that themselves. There is no blocker for selling our property as all the houses are freehold not leasehold ( as in the case with apartments)

RainyDay

Who pays the electric bill for the lighting? Who changes a bulb on the lighting?

sickpuppy32

The receiver is currently paying the bill and the council are changing bulbs - i think the receiver is paying them to do that

Jo King

sickpuppy32 wrote: »

The receiver is currently paying the bill and the council are changing bulbs - i think the receiver is paying them to do that

How can there be a receiver in a struck off company?

sickpuppy32

Jo King wrote: »

How can there be a receiver in a struck off company?

The receiver of the developer who still owns the common areas. The management company was truck off