© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
QUESTION
I live in a large block of flats (160) and we currently have a Tenants Association. We have had a long period of having a receiver and manager of our building due to the fact that in the past tenants felt aggrieved at the way the freeholder was running the building. At long last, we seem to be in the last stages of managing to purchase the freehold, which will be owned by a special purpose vehicle, the current leaseholders being shareholders. The directors of the company purchasing the freehold are going to be those that were on the tenants association.
Therefore, the intention is that the Tenants Association is wound up. However, checking the association rules, I do not see that there is anything set out as to what would be required to wind up the association.
Are you able to advise whether winding up the association may be done by a majority vote, or should be treated as an alteration of the constitution of the association or is there law which sets out the process?
If the Tenants Association is an unincorporated association there is no statutory framework covering its rules and dissolution. Not being a company it cannot go into administration or liquidation. A resolution of the majority of the members to dissolve it and distribute any surplus funds in accordance with the rules of the association will be sufficient. There is no need to amend the constitution. They do need to take advice from their solicitors about the inter-relationship of the parties as it is not clear to me what status the Tenants Association has in the block.
Stephen Crossick, Consultant at JPC Law