Advice on our next step please
Discussion
Here's the situation:
I own a flat and rent it out, as do several other owners in the block There are 18 flats. There are also some owners who live there as well.
Every month all owners pay a 60 quid maintenance charge into a company account which is managed by one of the owners to cover issues, bills and more importantly buildings insurance.
There is speculation that the person in question has allegedly been taking monies from the account and paying it into his own as he is the sole signature. He does not live in the block and refuses to talk to anybody, and refuses to hand over any paperwork or provide any receipts. He resolutely refuses to speak or answer his door.
As the owners addresses are kept by him, there's no way of finding out how much he has taken or following up if he has been paying the insurance on the block. There are outstanding maintenance issues, and also the bin collection has not been paid. This has only come to light this weekend so it is early days, and was only down to some amateur sleuthing on the part of one of the owners as he has not yet submitted the accounts and still refuses to do so.
I understand that first we have to gather the evidence and approach the Police, but without knowing when he started keeping the money, or indeed having any proof that he actually is other than no bills being paid and no accounts submitted means I'm not sure if that is adequate basis to approach them.
Any thoughts or insight is appreciated.
I own a flat and rent it out, as do several other owners in the block There are 18 flats. There are also some owners who live there as well.
Every month all owners pay a 60 quid maintenance charge into a company account which is managed by one of the owners to cover issues, bills and more importantly buildings insurance.
There is speculation that the person in question has allegedly been taking monies from the account and paying it into his own as he is the sole signature. He does not live in the block and refuses to talk to anybody, and refuses to hand over any paperwork or provide any receipts. He resolutely refuses to speak or answer his door.
As the owners addresses are kept by him, there's no way of finding out how much he has taken or following up if he has been paying the insurance on the block. There are outstanding maintenance issues, and also the bin collection has not been paid. This has only come to light this weekend so it is early days, and was only down to some amateur sleuthing on the part of one of the owners as he has not yet submitted the accounts and still refuses to do so.
I understand that first we have to gather the evidence and approach the Police, but without knowing when he started keeping the money, or indeed having any proof that he actually is other than no bills being paid and no accounts submitted means I'm not sure if that is adequate basis to approach them.
Any thoughts or insight is appreciated.
tty situation and would be interested to know how he became the account holder in the first place is he's so uncommunicative and doesn't live on site!I rather doubt that the police will be interested given that all you have is suspicion but no evidence.
I assume the company was set upunder the RTM provisions of the Commonhold and Leasehold Reform Act 2002.
All of the leaseholders should be members thereof.*
Are there any other directors of the company apart from the guy you have qualms about?
I hope so, because letting one individual control everything is extremely foolhardy.
* If so, one avenue which my be open to the members is to call an EGM and vote him out.
You will probably need to find a way of getting hold of the company's Memorandum & Articles for the required process.
Get all the other leaseholders onside to chip in in order to get some professional legal advice first.
I assume the company was set upunder the RTM provisions of the Commonhold and Leasehold Reform Act 2002.
All of the leaseholders should be members thereof.*
Are there any other directors of the company apart from the guy you have qualms about?
I hope so, because letting one individual control everything is extremely foolhardy.
* If so, one avenue which my be open to the members is to call an EGM and vote him out.
You will probably need to find a way of getting hold of the company's Memorandum & Articles for the required process.
Get all the other leaseholders onside to chip in in order to get some professional legal advice first.
I also own a leasehold flat and rent the same out, and in my case there is a Management Company in place, with each flat’s leaseholder having One Share, Directorship in the Limited Management Company.
My leaseholders/directors hold a General Meeting once a year, with the annual accounts prepared and approved by the majority of the directors, with the same then registered with Companies House.
Obviously It makes it easier to search for your block’s annual trading accounts if you know the name of your Management Company’s name, if you don’t then it is usual for the name to be the same as the first line of the block’s postal address. If the block’s postal address is 46 Piston Avenue, then searching using 46 Piston Avenue Management Company Ltd is a good start.
To search company’s directors, directors addresses, accounts etc. etc. , I use;-
https://www.duedil.com/
In similar situations I have invited all leaseholders and directors to an Extraordinary General Meeting, period of notification of the same, together with voting rights should be contained within the Company’s Article of Association, a copy of the same can be found when searching Companies House.
When I ever need legal advice on leasehold issues, I always contact The Leasehold Advisory Service. They operate a legal telephone help line, the same that needs to be prebooked, they also have an excellent web site that offers up to date advice.
http://www.lease-advice.org/.
My leaseholders/directors hold a General Meeting once a year, with the annual accounts prepared and approved by the majority of the directors, with the same then registered with Companies House.
Obviously It makes it easier to search for your block’s annual trading accounts if you know the name of your Management Company’s name, if you don’t then it is usual for the name to be the same as the first line of the block’s postal address. If the block’s postal address is 46 Piston Avenue, then searching using 46 Piston Avenue Management Company Ltd is a good start.
To search company’s directors, directors addresses, accounts etc. etc. , I use;-
https://www.duedil.com/
In similar situations I have invited all leaseholders and directors to an Extraordinary General Meeting, period of notification of the same, together with voting rights should be contained within the Company’s Article of Association, a copy of the same can be found when searching Companies House.
When I ever need legal advice on leasehold issues, I always contact The Leasehold Advisory Service. They operate a legal telephone help line, the same that needs to be prebooked, they also have an excellent web site that offers up to date advice.
http://www.lease-advice.org/.
Thanks for the advice so far, most helpful.
He was voted in when he was an owner / occupier and initially was very helpful and keen, prompt notes, meetings and everything above board and checkable. Over the last year he has had money problems, and it is becoming apparent he's not very capable when it comes to controlling finances, however that's my personal opinion.
Reddevil - you are correct, and I agree it was foolhardy to vote one person in, that was always the "way it was done" apparently by the owners when I bought my flat and it was never up for question. I imagine in such a small community of owners, when only half of them bother to turn up for the meetings it could be expected. There are no other directors, he is secretary and director. I have his details, name and address, also after searching I found notices saying "compulsory strike off action has been discontinued" dated 4th Jan.
Wings, thanks for the links, I'll contact the LAS on Monday and will search for a property solicitor. I've spent most of the afternoon speaking to the owners whom I can contact and we have agreed , in principle to chip in for a brief, just need an idea of figures. I get half hour free legal advice from the TGWU so will avail of that initially as well.
One of the biggest concerns is that if he has not been paying for the buildings insurance which is a monthly premium, then people who have mortgages could find themselves in breach of their conditions. These are young couples who have struggled enough to get on the housing ladder, this is the last thing they need.
Thanks again , I owe you a pint or three chaps.
He was voted in when he was an owner / occupier and initially was very helpful and keen, prompt notes, meetings and everything above board and checkable. Over the last year he has had money problems, and it is becoming apparent he's not very capable when it comes to controlling finances, however that's my personal opinion.
Reddevil - you are correct, and I agree it was foolhardy to vote one person in, that was always the "way it was done" apparently by the owners when I bought my flat and it was never up for question. I imagine in such a small community of owners, when only half of them bother to turn up for the meetings it could be expected. There are no other directors, he is secretary and director. I have his details, name and address, also after searching I found notices saying "compulsory strike off action has been discontinued" dated 4th Jan.
Wings, thanks for the links, I'll contact the LAS on Monday and will search for a property solicitor. I've spent most of the afternoon speaking to the owners whom I can contact and we have agreed , in principle to chip in for a brief, just need an idea of figures. I get half hour free legal advice from the TGWU so will avail of that initially as well.
One of the biggest concerns is that if he has not been paying for the buildings insurance which is a monthly premium, then people who have mortgages could find themselves in breach of their conditions. These are young couples who have struggled enough to get on the housing ladder, this is the last thing they need.
Thanks again , I owe you a pint or three chaps.
You should both avoid going it alone, and making assumptions, accusations and approaching a solicitor.
There is power in numbers, and to that end you need to hold a meeting with other leaseholders, and get their support before going forward.
In my case, after our above leaseholders meeting, with several years accounts in hand, I approached a firm of accountants, the same with experience in producing block management accounts.
Review of my block’s accounts by our accountants, found that the management company (hereafter MC) were cancelling the building’s insurance policies, and placing the refund monies in their own bank account. After obtaining a copy of the building’s insurance certificate, Section 20 of the Landlords & Tenants Act 1985 allows leaseholders to request a copy of the same, it was found that the MC were increasing the building’s insurance premium by 150%.
Some of the scams to look out for are phoney contractor’s invoices, charges for phoney works not carried out, kick-backs on maintenance works, also operating their own contractors to carry out gardening, window cleaning, decorating and general repairs, all of the same increasing profit for the MC, and increasing costs for the leaseholders.
Disputes between Leaseholders, Freeholders and/or Management Companies, are heard before The First-Tier Tribunal (Property Chamber).
http://www.leaseholdknowledge.com/all-change-for-l...
There is power in numbers, and to that end you need to hold a meeting with other leaseholders, and get their support before going forward.
In my case, after our above leaseholders meeting, with several years accounts in hand, I approached a firm of accountants, the same with experience in producing block management accounts.
Review of my block’s accounts by our accountants, found that the management company (hereafter MC) were cancelling the building’s insurance policies, and placing the refund monies in their own bank account. After obtaining a copy of the building’s insurance certificate, Section 20 of the Landlords & Tenants Act 1985 allows leaseholders to request a copy of the same, it was found that the MC were increasing the building’s insurance premium by 150%.
Some of the scams to look out for are phoney contractor’s invoices, charges for phoney works not carried out, kick-backs on maintenance works, also operating their own contractors to carry out gardening, window cleaning, decorating and general repairs, all of the same increasing profit for the MC, and increasing costs for the leaseholders.
Disputes between Leaseholders, Freeholders and/or Management Companies, are heard before The First-Tier Tribunal (Property Chamber).
http://www.leaseholdknowledge.com/all-change-for-l...
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