Changing Management Agent

Idol

Hi,
I am currently a director of the management company for my apartment block. We have had the same managing agent that was appointed by the developer when the block was built around 7 years ago. After a few years of pretty bad service, I've decided the time is right to change managing agent and have the backing of the 2 other directors who are no longer resident in the block.
My problem is, when do I advise the current managing agent they are no longer required?
I have quotes from 2 other managing agents and had a meeting with other owners in the block to choose which one we want to change to. Our AGM is coming up with the current managing agent, so do I wait until the AGM and put it to a vote to get rid of them there and then, or can I send them a letter now advising we no longer require their services?
Any advice on this would be really helpful.
Thanks

djimi

You would need a meeting of the manamagent company (ie AGM) to vote out the existing agent and vote in a new agent. I dont think you can act on either without the overall consent of the management company.

markpb

Idol wrote: »

when do I advise the current managing agent they are no longer required?

If you can find the contract between the OMC and the MA, it should state the notice period that you need to give. If the MA was appointed by the developer, there's a good chance that no contract exists or will be found. In that case, I'd give 2-3 months notice. You need plenty of time to arrange the handover but you don't want it to be so long that the outgoing agent does nothing, the new agent doesn't have all the information yet and the owners are confused about who to contact.

djimi wrote: »

You would need a meeting of the manamagent company (ie AGM) to vote out the existing agent and vote in a new agent. I dont think you can act on either without the overall consent of the management company.

With the exception of the auditors (who are hired by the members, not the directors), any company including the managing agent can be replaced by the directors without going to an AGM. You'll get some members who'll whinge because they weren't asked for their opinion but that's always the way. You might, for the sake of transparency, bring it up at the AGM and let members know your plans but personally, I wouldn't put it to a vote.

When you start the switch-over, make sure you communicate well with all your owners Give them a definite handover date as well as contact details for the new agent, etc. Cheques for service charges should always be made payable to the OMC, not the MA. Likewise, any standing orders should always be sent to the OMC bank account. After the changeover, make sure you check with the old MA in case any funds meant for you ended up with them.

And lastly, it might make life easier if your changover date is the first date of your new financial year. Otherwise you'll end up with an auditor getting accounts and backup from two agents for a single audit.

Idol

With the exception of the auditors (who are hired by the members, not the directors), any company including the managing agent can be replaced by the directors without going to an AGM. You'll get some members who'll whinge because they weren't asked for their opinion but that's always the way. You might, for the sake of transparency, bring it up at the AGM and let members know your plans but personally, I wouldn't put it to a vote.

Thanks. I was planning on advising members this week of the change in managing agent, so that should be fine. In the absence of the other two directors, although I have their backing, is it okay for me to send a letter to current managing agent to terminate their contract without the other directors' signatures?

Santa Cruz

djimi wrote: »

You would need a meeting of the manamagent company (ie AGM) to vote out the existing agent and vote in a new agent. I dont think you can act on either without the overall consent of the management company.

What's the point in saying "I don't think" That has no legal foundation.

The Directors have been elected to manage the property on behalf of the owners i.e. shareholders and have the authority to employ a managing agent.

What use would Directors be if they had to go back to the shareholders to get agreement on every decision they have to make?
They can go to the A.G.M. and make their annual report. If the shareholders are not happy they need not re elect the Directors.
The Management Company is not a glorified Residents Association. It is a limited company established under the Companies Acts and the Directors elected at the A.G.M. have the authority to manage

djimi

Fair enough; I am mistaken. Changing management company is a fairly major desicion in fairness; I mistakenly thought that it needed to be approved by vote.

markpb

Idol wrote: »

Thanks. I was planning on advising members this week of the change in managing agent, so that should be fine. In the absence of the other two directors, although I have their backing, is it okay for me to send a letter to current managing agent to terminate their contract without the other directors' signatures?

I think, but could be wrong, that the letter should be signed by the company secretary but in practice, it probably doesn't matter. What you need to do is have a board meeting (in person or by email or phone call) where the majority of directors agree to change the agent. Make sure that meeting is minuted so no one can question the decision later on. Once that's done, you can send your letter to the existing agent.

Paulw

When we changed agent, we served them notice by letter. I, as director and company secretary, was the only one to sign the letter, but all 4 directors agreed to change agent.

We did it two weeks prior to the AGM, and introduced our new management agent at the AGM. We asked for a vote on the change, and it was passed unanimously‎. But, technically the change had already been performed.

The hardest part was getting all documentation from the previous agent, especially since they were installed by the developer and had ties with them. But, after a lot of phone calls and then a solicitor's letter, we got everything.