Management Company (freehold) lack of information, lack of transparency of accounts

Watson

Registered User
Messages
2
I am encountering problems with my management company (fellow property owners) in terms of how they manage the company and the information (or lack of) which they share with the rest of the property owners.

There are 19 properties all with share of freehold divided into 3 buildings which are managed by a management company comprised of property owners with 3 directors (‘The council’).

It all started 3 years ago when I came home one day to find someone painting the woodwork of my property…a call to the chairman revealed that the ‘’Secretary’’ had decided that the outside of the house needed to be painted….no mention of this planned work at the annual AGM, no notice of the work and no information regarding the cost. Totally unacceptable. 3 years later I still do not know how much it cost to paint my house!!

Since then I have been asking to receive a detailed breakdown of expenditure/the accounts, information which to date has not been forthcoming. In the latest email it has been stated that in order to get a full breakdown of the accounts 1) there will be a cost involved b) we would therefore need to get the permission of all 19 owners.

I have repeatedly asked 1) that we have greater visibility / detail behind the accounts 2) that the AGM’s are run in accordance with legislation and agreements (21 days notice, minutes taken and circulated in a timely manner, planned works proposed and voted). Despite promises that things will change, nothing has and when challenged the directors (one of whom has been in situ for 45 years) take it as a personal attack and close ranks.

I have tried to resolve this situation amicably, but have failed, has anyone else come across this situation? What can I do now? What are my options moving forward?
 
What do you mean by share of freehold?

Is it apartments or houses?

Are the accounts not presented at the AGM each year?
 
this are 3 separated houses on one piece of land, which have been converted into flats, instead of a lease hold, we have a share of freehold.

the accounts are presented but there is no detail / breakdown.

the details we get are: common services, common are, grounds general, roofing.

there is no detail behind the figures, for example, if work is done we do not see the cost of that work or invoice.
 
Well a few issues. Is this an actual omc? What sort of lease structure do you have as an owner?

What is the owner renter ratio?


IF it is a std omc then all directors must stand for re-election every three years.

And an omc doesn't need to give advance notice of works of that nature.

In terms of accounts it also doesn't have to provide a detailed breakdown of individual costs. In small development there is no reason why it couldn't though.

Love the phrase the council. Very matrixy.

Not giving 21 days notice of an agm is a breach of company law. Notify the odce of every breach and any future ones.
 
Let's look at the bigger picture here.

Does your management company look after the place well?
Is the annual service charge reasonable?
Are the directors paid for their work or are they volunteers?

If the place is looked after well, I would put up with the failures to adhere to the technical issues about notice.

I would much prefer that to an OMC which keeps the books in great order but doesn't look after the place.

Of course, the worst of all possible worlds is:
1) Doesn't look after the place
2) Charges a high annual service charge
3) Doesn't give you any information

What do the other owners think? If they, too, are unhappy, you can vote off the directors and take over the running of the OMC yourselves.

Brendan
 
this are 3 separated houses on one piece of land, which have been converted into flats...

So you know that they're not your windows so? And your permission isn't required to maintain them?
 
Many OMC are managed by volunteer Directors, many of those volunteers have no real knowledge or experience of being a Director. Many volunteers put their heart and mind into doing what is right for the greater good. Many more, in my personal experience, are on some kind of power trip, won't do the job and won't resign and let someone else do the job. Some volunteer Directors, in my personal experience, are treating the OMC like an ATM and putting personal enrichment and personal agendas ahead of the greater good and are completely ignoring the MUD Act. There is another way and I don't mean complaints to the various Regulators.
 
Back
Top