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Company secretary services for leaseholder management companies
Leasehold flats can be found in purpose-built blocks, in converted houses or above commercial or retail premises. Leaseholder management companies are appointed by the freeholder or the resident management company to manage the building in apartment blocks.
Leaseholder management companies vary greatly according to the size of the apartment block involved. In smaller blocks, individual flat owners may all be directors of the company, whereas in larger blocks this would be impractical, although each flat owner could be a member of the company. The bigger the block, the more issues there are likely to be around balancing the interests of flat owners and the landlord to avoid potential conflicts. The important principle is that decisions should be made according to what is in the best interest of the whole group, not one individual flat.
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 in a leasehold management company 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 less than ideal as directors of leasehold companies typically serve on a temporary basis in a voluntary capacity without reward. 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.
Several leasehold companies rely on Bridgehouse Company Secretaries to fill the company secretary role and limit their directors’ exposure to liability.
Company secretary services for leaseholder management companies include:
- Assisting in updating articles of association – the governance document for your leasehold company
- Compliance services – ensuring that your leasehold company complies with all the necessary legislation and filings are up-to-date at Companies House
- Advice on planning and budgets for the management of your building
- Help with correspondence between the leasehold company directors and members
- Legal advice on contracts and contractors
- Assistance with management functions for your building
- Transfer of shares or membership on sale of property within the block; this will include producing all documentation for the transfer, including stock transfer forms, share certificates and board resolutions to approve the transfer
- Meeting support – Attending board meetings to take minutes
- Maintaining all statutory registers for your leasehold company – including register of directors, members and charges
Bridgehouse Company Secretaries can handle all compliance required for such companies including making transfers of ownership when flats are bought and sold, processing transfers of ownership and maintaining all the relevant registers – members, shareholders and directors. Talk to us without any obligation to find out more.