Do we need to continue to run two companies (the freehold company and the right to manage company? We also have a residents association do we need this also? Can they be merged together? And, do we still need to run 2 AGM's?
Post the Companies Act 2006 need to run an AGM for any company UNLESS the Memorandum & Articles of Association specifically require you to do so companies or 1? The answer is that 1 company has to consume the other and here lies your problem. Your Freehold company cannot consume your RTM company as the FH does not have the right to manage, you have OM written into your lease forever! Your RTM company has a Memorandum of Association prescribed by the 2002 Act which do not include owning the freehold, ie, the RTM companies purpose would be exceeded. And, even if the RTM company was allowed to change its objectives, if it consumed the Freehold company then some people who did not buy into the Freehold may end up getting given a Freehold share If any vehicle is now extinct it is your Residents Association. Having ousted OM by claiming your RTM it has no real purpose.
R Gilett, SW11