subject: Creating A Right To Manage Company [print this page] Creating A Right To Manage Company Creating A Right To Manage Company
After a few meetings, information gathering and getting the right solicitor to help create your right to manage company, you and your fellow tenants have decided to manage your block of flats. Although you will be the managers, it will actually be the new, essential right to manage, or RTM company which exercises the right and takes the responsibilities. This way, if the leaseholders change as time goes by, the right to manage company will remain the same. Exercising your right to manage leasehold property and setting up a company to do so is not difficult, but it must be done with precision and planning in order to avoid delays and surprises. Your right to manage solicitor can help you with those and ensure each leaseholder fully understands and is aware of various aspects of the RTM company. In brief, this includes: - in order to be valid, the right to manage company has to have an Articles of Association. This regulates the running of the company and its purpose -exercising your right to manage leasehold property.- when it comes to the registration of your RTM company you will need to draft a Memorandum of Association. This memorandum is a formal document which lists all the leaseholders whom are involved in the right to manage company. Here they will be setting their intention to create the company- information about starting right to manage companies is detailed in a Statutory Instrument from 2009 No. 2767. When you decide to create your right to manage company your RTM solicitor will take you through the process step-by-step, this will make sure that you do not miss anything vital and the procedure is as pain free as possible. A good source of information can be obtained from Companies House and leaflets, such as:- Resolution (GBA7) - Annual Returns (GBA2) - GBA1 - or Directors and Secretaries Guide - Accounts and Accounting Reference Dates (GBA3)At this initial stage, to establish the right to manage company, you will only need enough qualifying leaseholder participants to have a chairman, directors and a secretary. Nevertheless, in order to run a successful right to manage company you will need a group of dedicated and responsible leaseholders who know what the process will involve.After the RTM company has been set up and registered, it is obligatory that the rest of the leaseholders are invited to join (including the landlord). Talk to your solicitor to get the process completed properly and soon you can be enjoying the ability to manage your own block of flats. And most importantly, when selecting a right to manage solicitor, make sure that you pick someone with the right type and amount of experiences surrounding right to manage companies.
