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Q&A - Taking over the management
publication date: Dec 22, 2009
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author/source: Yashmin Mistry, Brethertons LLP
QUESTION
We are a small group of residents with a Company Secretary and 4 Directors. We took over the management of 31 properties with shared grounds and a maintenance charge. We need advice on our duties and whether we have to intervene in every dispute eg noisy neighbours and parking.
C. Strong
ANSWER
You need to check the Company’s Memorandum and Articles of Association, and the management lease or the transfer document to ascertain your duties and obligations. The Company will be in breach and arguably could be exposing itself to potential proceedings being brought against the company if it fails to perform any of these duties and obligations. In addition the officers may be subject to personal legal action if they fail to carry out their responsibilities and therefore we would strongly recommend that Directors and Officers Liability Insurance is maintained. You may have to take a pragmatic view on the degree to which enforcement takes place if friendly discussions breakdown and follow up letters are ignored.
Yashmin Mistry is a Solicitor at Brethertons LLP
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This publication is a single-user subscription. It is intended for the recipient only. Dissemination by electronic, copy, fax or any other means is strictly prohibited. Usage is monitored. If you require further licences of this product, please call the subscriptions hotline 0845 618 7746 or email enquiries@newsontheblock.com
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Q&A - Taking over the management
publication date: Dec 22, 2009
|
author/source: Yashmin Mistry, Brethertons LLP
QUESTION
We are a small group of residents with a Company Secretary and 4 Directors. We took over the management of 31 properties with shared grounds and a maintenance charge. We need advice on our duties and whether we have to intervene in every dispute eg noisy neighbours and parking. C. Strong ANSWER You need to check the Company’s Memorandum and Articles of Association, and the management lease or the transfer document to ascertain your duties and obligations. The Company will be in breach and arguably could be exposing itself to potential proceedings being brought against the company if it fails to perform any of these duties and obligations. In addition the officers may be subject to personal legal action if they fail to carry out their responsibilities and therefore we would strongly recommend that Directors and Officers Liability Insurance is maintained. You may have to take a pragmatic view on the degree to which enforcement takes place if friendly discussions breakdown and follow up letters are ignored. Yashmin Mistry is a Solicitor at Brethertons LLP This publication is a subscription only product. Dissemination by electronic, copy, fax or any other means is strictly prohibited. Usage is monitored. This publication is a single-user subscription. It is intended for the recipient only. Dissemination by electronic, copy, fax or any other means is strictly prohibited. Usage is monitored. If you require further licences of this product, please call the subscriptions hotline 0845 618 7746 or email enquiries@newsontheblock.com |
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