Can A Solicitor Help With A Right To Manage Company? - By: Tim Bishop

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.

Although following the right to manage procedure and creating a right to manage company might not be overly complicated, it needs to be done in an organised fashion and executed with precision in order to avoid future problems. 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 a legal company your right to manage company must have an Articles of Association. This regulates the running of the company and its purpose -exercising your right to manage leasehold property.

- when registering the RTM company, a Memorandum of Association will be necessary. This memorandum is a statement and a list of the names of the leaseholders joining 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 critically, when choosing a solicitor to represent you, make sure you pick one with significant experience of the formation of a right manage company and the issues surrounding it.

About the Author

Bonallack and Bishop are specialist right to manage company solicitors with significant expertise in advising on the right to manage leasehold property. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions.

Article Directory Source: http://www.articlerich.com/profile/Tim-Bishop/62652

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