Management Company - Strike off listed (CRO)

[Booter]

I've just found out that the Management Company covering the estate where I have an apartment has a CRO status of "Strike Off Listed". I don't really know what this means, but I'm guessing its not good.

Can anyone shed any light? What would a company have to do (or neglect to do) to attain this status?

 

[ontour]

to attain this status the most likely reason is that they would have not filed annual returns in a few years.

The implication of the company being struck off is that apartments could not be sold and there would be a significant cost involved in reinstating the company which would also take some time as I believe it involves a trip to the High Court.

You should ask your management company / agent about this as there may be a simple explanation such as a similar named company. You will have a reasonable idea as to the gravity of the situation based on how well the development is managed and how the AGMs are run.

 

[RonanC]

The implications of a company being struck off are very serious. The company may have been placed on a strike off list for failing to file their annual returns. In order for the company to be removed from this list, they must file any outstanding annual returns, accounts and pay any late filing fees. You can easily find out when the last annual return filed was by using the company search facility on the .

As ontour states, one of the implications of strike off is, apartments cannot be sold until the company has been restored and this can be very expensive depending on how long the directors leave it.

 

[Booter]

Just to update on this, I've spoken to the agent from the Property Management company, (rang me back fairly promptly), and he says that he has spoken to their accountants, and this will be taken care of in the coming weeks. He stated the annual returns will be brought up to date in advance of an April AGM (we have not had one in 5 years to date).

In a seperate development, the Bank wrote to me this morning advising that the Block policy has been cancelled with effect from Jan 2010. Not sure why they've waited this long to inform me.
Again, I spoke to an agent of the property company, different guy this time, who gave me further "assurances" that he has gone out for quotes for this. This is a very serious development; in anticipation that no policy will be put in place, is it even possible for me put buildings insurance in place for my apartment alone?

Putting 2 + 2 together, it seems like these guys have been pocketing the cash and not bothering with even the basics of property management.

 

[mf1]

"Putting 2 + 2 together, it seems like these guys have been pocketing the cash and not bothering with even the basics of property management. "

Who are "these guys"? Do you understand the difference between Management Company and Management Agent?

If you have concerns about the running of the Management Company, you need to take more interest and get more involved.

If none/few of the owners have any interest and are content to sit back letting other people manage (or not manage) their investment, and if no-one has blinked at the idea that there has never been an AGM in five years, you would have to wonder if property owners have any idea at all about their own responsibilities.

mf

 

[ontour]

Again, I spoke to an agent of the property company, different guy this time, who gave me further "assurances" that he has gone out for quotes for this.

Ignoring the fact that the owner need to get involved etc etc. not having block insurance is extremely negligent of the directors. If they were running out of money, they should have written to owners informing them of the risk of the policy lapsing. There are only a couple of companies providing block insurance so getting the quotes should not take long.

 

[Seagull]

Who runs the management company? Is it still the developer, or has it been handed over to the house owners?

If the company was on the verge of being struck off, there are probably some fairly significant fines to be paid. You need to find out who is going to be liable for those. If there has not been an AGM in 5 years, there is another significant breach of the companies act.

 

[Booter]

"Putting 2 + 2 together, it seems like these guys have been pocketing the cash and not bothering with even the basics of property management. "

Who are "these guys"? Do you understand the difference between Management Company and Management Agent?

If you have concerns about the running of the Management Company, you need to take more interest and get more involved.

If none/few of the owners have any interest and are content to sit back letting other people manage (or not manage) their investment, and if no-one has blinked at the idea that there has never been an AGM in five years, you would have to wonder if property owners have any idea at all about their own responsibilities.

mf

Good man

 

[Booter]

Who runs the management company? Is it still the developer, or has it been handed over to the house owners?

If the company was on the verge of being struck off, there are probably some fairly significant fines to be paid. You need to find out who is going to be liable for those. If there has not been an AGM in 5 years, there is another significant breach of the companies act.

The developers still control it, and as there has been no AGM, there has been no opportunity to elect new directors and move it on; this is at the core of all the issues arising. I'm told by the agent, who is also a director (both of which roles I understand perfectly well, but see no need to spell out each time I post) that there will be an AGM in April. At this stage I am considering withholding payment, and possibly contacting other owners with a view organising something collectively, which will force the hands of the Directors.