Leasehold companies are set up when a group of people – typically owners of separate flats within a building – get together to take over the management of a leasehold property from the landlord. Leasehold companies are not subject to all of the legal requirements that other types of company must comply with, but they still require their directors (the owners of the individual flats) to administrate their company effectively, and the directors may be liable for any failure to comply with the requisite rules and regulations.
How a company secretary can help
While the Companies Act 2006 eliminated the legal requirement for leasehold companies to appoint a company secretary, in practice this places greater responsibilities on the directors of such companies. The role of company secretary remains crucial in ensuring efficient administration, preventing conflicts of interest and ensuring that agreed corporate procedures are followed. If no company secretary is appointed, these responsibilities simply fall to the directors.
This is a less than ideal arrangement as directors of leasehold companies typically serve on a temporary basis in a voluntary capacity without reward. They often have little knowledge of the duties the post involves and limited experience of running a company. In contrast, a professional company secretary brings specialist expertise and experience to the role, which means leasehold companies not only run more efficiently but also that the risk to the company and its directors is reduced.
Company secretarial services for leasehold companies
Bridgehouse Company Secretaries will take the strain of administrating your leasehold company and give you and your fellow directors peace of mind in the knowledge that it is being run with professional expertise. Our legal experts can provide company secretarial services for leasehold companies including:
- Advice on setting up your leasehold company – we’ll check that your building complies with Right to Manage legislation, that there are sufficient leaseholders to form the company and research the necessary information to ensure that that everything is in place for your company to be formed. We can then help you register the company at Companies House.
- Preparation of a Memorandum and Articles of Association – the governance document for your leasehold company
- Compliance services – ensuring that your leasehold company complies with all the necessary legislation
- Advice on planning and budgets for the management of your building
- Help with correspondence between the leasehold company and the landlord
- Legal advice on contracts and contractors
- Assistance with management functions for your building
- Help, should it be required, with the dissolution of your leasehold company
Several leasehold companies currently rely on Bridgehouse Company Secretaries to fill the company secretary role and limit their directors’ exposure to liability.
Contact us for more information
Setting up and running a leasehold company can seem daunting, but with the right help it does not have to be difficult. If you have any questions about running your leasehold company, we will be happy to discuss these with you with no obligation.
To find out how our leasehold companies services could benefit your leasehold company, give Bridgehouse Company Secretaries a call on 0845 055 8260 or email firstname.lastname@example.org