liabilities involved if becoming a director of management company

[AKA]

When should the resident owners become directors of a housing estates management company.

If we hold an EGM and appoint new directors of our management companies what are the implications - both financially and in relation to the council taking in charge the housing estate.

I understand the developer has a bond held with the council if the estate doesn't meet its standards but I've heard the bond is often not enough to the works required after camera surveys etc.

 

[shesells]

Owners should become directors at the first AGM after the last unit is sold, at this stage the developers should stand down as directors.

Not sure about the taking in charge element but speaking as a director, it's time consuming and stressful but the only way you can be sure your interest in the development is protected.

 

[AKA]

Cheers - 2 phases completed with 2 management companies and all units sold - but one additional phase is planned for. We are reluctant to take directorships until we receive a taking in charge policy from the county council.