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Oh we have… the last audited accounts submitted at the CRO were 2008. But we know where the finances are right now via the current agent. Would you be shocked if I told you the company is in the red 7 figures… I sh*t you not.1. Find out as much background info regarding the management company that was established by the directors, get your hands on a copy of the last audited accounts and see how good / bad the financial position is.
Our residents group are liaising with the current agent and plan to use them for the medium term while the company transitions to the owners and new directors are bedding in.2. Engage a managing agent, they will have went through this before and can negotiate with the developer on your behalf. They as the other poster stated also put a clear barrier between the directors and the unsavoury characters in your developement.
No… I know what you are talking about re. weighted voting rights…. and you are not the only one to have said this when we tell people we were not members. I can categorically tell you (our residents group even have our own legal advice on this) our leases ensured we were not members of the company and would not have been until the developer decided otherwise. Apparently these types of leases were rare but not unheard of. For the last 5 years as we were not members no AGM was required and we had no rights whatsoever. We tried everything including going to the ODCE and were told… nothing could be done as we weren’t even company members. We then got a solicitor and looked into taking the developer to the High Court to force him to make us members. But by that stage MUD was in sight so we waited. And now, finally we have the holy grail of membership that is a given for so many of the rest of you!!!!3. From what you say above I would imagine that all owners were members of the management company but did not have equal voting rights?? This happened quite a bit where the developer wanted to retain power and thankfully under the MUD bill this has been rectified, but be carefull about putting yourself up as director, it can be a lonely place. However if no one steps forward the developement goes south very quickly.
Believe me dude…. Nothing would surprise us… NOTHING!!! And we know this is going to take time and sweat.4. Be prepared for more problems. Generally if a developement is badly ran and has serial non payers there may be a number of things that can come out of the woodwork
- Unpaid bills
- Possible legal claims
- Special arrangements between the developer and some debors to name but a few.
- It will take time and it could be 3 - 4 years before the developement is really back to where it should be
Without a doubt… top of the list.5. As another poster stated. Whatever you do take D & O Insurance before you even consider becoming a director. It is unfortunate that in this day and age it is the conscientous few that step forward and try to better their developement that are taking on the most risk.
Thanks for the advice guys. Zenga… in reply to a few of your pointers… just for context/clarity!
Oh we have… the last audited accounts submitted at the CRO were 2008. But we know where the finances are right now via the current agent. Would you be shocked if I told you the company is in the red 7 figures… I sh*t you not.
Our residents group are liaising with the current agent and plan to use them for the medium term while the company transitions to the owners and new directors are bedding in.
No… I know what you are talking about re. weighted voting rights…. and you are not the only one to have said this when we tell people we were not members. I can categorically tell you (our residents group even have our own legal advice on this) our leases ensured we were not members of the company and would not have been until the developer decided otherwise. Apparently these types of leases were rare but not unheard of. For the last 5 years as we were not members no AGM was required and we had no rights whatsoever. We tried everything including going to the ODCE and were told… nothing could be done as we weren’t even company members. We then got a solicitor and looked into taking the developer to the High Court to force him to make us members. But by that stage MUD was in sight so we waited. And now, finally we have the holy grail of membership that is a given for so many of the rest of you!!!!
Believe me dude…. Nothing would surprise us… NOTHING!!! And we know this is going to take time and sweat.
Without a doubt… top of the list.
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