Management Fees - When are accounts due?

[Jason_77]

Hi,

Can someone please advice on the timings of management due fees?

We received the management invoice for 2008 in early January 2008, however the accounts for 2007 were only signed off by the management company and auditors in June 2008 and submitted to us (the residents) in September. Included in these accounts was the 2008 budget.

Is there a legal requirement for the residents to pay the management fee prior to seeing the budget for that particular year?
Also, is there an obligation on the management company to provide more timely accounts for the previous year.

My thought is that the residents should not have to pay the fee until they a) have visibility of where the finances are going and b) have visibility of the previous years account.

Finally, is there any obligation on management company directors to attend an agm with the residents?

Any insight into the management companies obligations are appreciated.

Thanks,

Jason.

 

[woods]

I may get some criticism here for this but I run 2 management companies and have never had a meeting with any residents or given them any accounts.
It has never been suggested to me that I have an obligation to do either. I get the accounts prepared and submitted to the CRO on time and leave it at that.

 

[shesells]

OP are you an owner? In management company terms residents have zero rights. Owners on the other hand generally are members of the management company. As such you are entitled to an AGM at least every 15 months. At the AGM the previous year's accounts should be presented and the current year's budget. The issue is that it takes months after the end of the financial year to get the accounts audited and filed so the discussion of the current year's budget may be slightly obselete.

Our financial year ends at the end of May but the directors have only recently got the accounts. AGM likely to be November/December.

 

[ClubMan]

I may get some criticism here for this but I run 2 management companies and have never had a meeting with any residents or given them any accounts.
It has never been suggested to me that I have an obligation to do either. I get the accounts prepared and submitted to the CRO on time and leave it at that.

I thought that limited companies were obliged to issue shareholders with copies of the most recently filed accounts around the time of a general meeting as a general rule? As a member/shareholder of two limited companies (one a management company and another a sports club) this has always been my experience. Or does that depend on the memorandum and articles of association of the specific limited company? If you are acting as the accountant/auditor then perhaps this is not your direct responsibility but perhaps it is someone's?!

 

[woods]

I thought that limited companies were obliged to issue shareholders with copies of the most recently filed accounts around the time of a general meeting as a general rule? As a member/shareholder of two limited companies (one a management company and another a sports club) this has always been my experience. Or does that depend on the memorandum and articles of association of the specific limited company? If you are acting as the accountant/auditor then perhaps this is not your direct responsibility but perhaps it is someone's?!

Yes, that is correct regarding the shareholders but not the residents. I am assuming that the OP is not a shareholder or would not be in the dark to such an extent if they were. This type of managment company needs to have 7 shareholders and 2 directors. None of these need to be residents.

 

[shesells]

Woods why would residents be getting bills for management fees? I know the OP hasn't clarified their situation on here but it seems likely they are an owner.