Resident Management Company
Resident Management Company
Increasingly, Local Authorities require developers to set up estate management companies to manage unadopted roads, land and gardens, children’s play areas, gated or ungated car parking areas. An Estate Management Company, otherwise known as a Resident Management Company (RMC), brings with it all the governance responsibilities of running a company as well as the responsibility to collect the estate charge and manage contractors and repairs. Running these companies isn’t a straightforward matter and it can be a daunting task, with responsibility for not only the welfare of the development but that of all those that live or visit the development. We provide specific advice and guidance to ensure that the directors of the estate management company fully comply with their duties under H&S and Company law. Quite often, the need may arise where you need advice and support regarding company related matters.
Eligibility to be a Member of the Board
The Memorandum and Articles of Association with the RMC set out how the company should operate. It clarifies specific requirements for eligibility such as only owners on the development can become a director. There are various aspects to the role of Director of an RMC, here is a summary of the core duties:
The Directors will manage the development through the RMC and will be required to learn about company procedures or to employ a third party to advise them on such matters.
Appointing Officers of the company is a key requirement on an ongoing basis.
The officers will have all the normal responsibilities of Company Directors.
There will be a variety of technical matters to be dealt with.
The company must be kept solvent.
Running an RMC isn’t a straightforward matter. It's important to be aware that Directors can be found personally liable for breaches in legislation and need to act with the Memorandum and Articles of Association. There is a wide variety of statute and case law that surrounds running the RMC. Due to the complexity of the legislation surrounding RMC Directors, our approach is to work in partnership with the RMC's we work with to ensure that the appropriate advice is provided where relevant. We can work with you to field enquiries about the development and discuss key issues with you as they arise. It is the choice of the Directors of the RMC on how they would prefer to operate
Budgeting
Budgeting for any development is key to successful management. We work with the estate management company, and as agents, we make regular visits to the development to ensure that the directors are aware of any potential problems, both in the long and short terms. Setting the right level of estate charges is critical. Long term under budgeting causes standards to fall leading to a negative cycle of neglect where residents are not invested in their estate as they are not seeing the results they want to see.