New law gets Resident Management Companies off the hook

According to online property solution provider, leaseholdersupport.co.uk, 60% of small flat management companies who are failing to comply with the law will be let off the hook with the introduction of the new Companies Act 2006 which comes into effect on 1st October 2007. A recent survey carried out by Chartered Surveyors, The Ringley Group, has confirmed that over half of Residents Management Companies (RMCs) are currently failing to comply with the current Companies Act. When asked, RMCs admitted that they didn't have Annual General Meetings (AGMs) and were failing to deal with the complexities of running a block effectively.

Under the new Companies Act 2006, RMC will no longer be required to appoint a Secretary or hold AGM unless it wishes to. Mary Anne Bowring, creator of Leaseholders Support supports the change: -A RMC is a formally constituted company just like any other company; therefore it has always had a duty to hold an Annual General Meeting. However, under the new Act, RMC have been given more flexibility which means they are more likely to be comply with the law then before. Under the new Act, RMCs may also propose and implement decisions affecting the Company, giving them more control over the running of the block. For more information about solutions for small blocks of flats who cannot afford to appoint a managing agent please visit www.leasaeholdersupport.co.uk