Q&A - Director of a commonhold association / residents management company?

July 20, 2009
by News on the Block Editorial Team

QUESTION

Dear Sir,
I am looking for information about my right as a leaseholder to become a director of the commonhold company in charge of my apartment block. (Is commonhold the correct term?) The company was set up by the developer and now the blocks are all sold out; yet I and the other leaseholders have not yet been given the opportunity to become directors. We are having major issues with the management company that was assigned by this commonhold company and wish to have our say.The developer still has its own directors in charge and they are not acting in our best interests. We have not had an annual meeting and the block is now 3 year old. We have not had a say in any decisions and they are not acknowledging any of our meeting requests.
Please help.
Name witheld

ANSWER

The first point to clarify is whether you are a leaseholder or own a commonhold unit; these are two distinct ways of owning
a property. Leaseholders and commonhold owners have different legal rights. Note that a commonhold association should end with the words “Commonhold Association Limited”. In either case, if you and your neighbours are shareholders in the management company or are members of the commonhold association and are not satisfied with the management then under normal company law you should be able to request that a meeting be held and your voice heard. However,if you are a leaseholder then you may be able to acquire the freehold of your block (collective enfranchisement) or exercise the right to manage the building. You should consider carefully with your neighbours the advantages and disadvantages of both of these options, along with a solicitor.
Leigh Shapiro is a Solicitor at Trowers and Hamlin LLP

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