Offered directors position on board of freehold company
Discussion
errr...... HELP! 
Right. Brief explanation.
I live in a development of 36 flats which are all leasehold.
However, the limited company that owns the leases is itself owned by the residents (36 shares, everyone has one share.). So basically we all own the freehold and all the flats were put onto 999 year leases a few years ago.
All the company basically does is organise the maintenance & insurance of the flats through a yearly charge (which is about to go through the roof!), decide which work gets done first, deal with inter-resident complaints, the usual stuff you might expect. There is no profit to be made from this, the maintenance money comes in, it gets spent or it doesn't and if it doesn't it just stays in the account for the next year.
I have been nominated for a directors position but I am not sure if should accept? I would like to be on the board to make sure I know what's going on (the director who has resigned but still lives in block is an insane racist and was sending out unwarranted threatening letters to some members of the development ) and I am trying to work out what I need to be worried about but can anyone confirm that I won't be liable for any financial penalty if anything starts going breasts up? (law suits, compensation claims, other peoples rent arrears etc.)
Somebody has mentioned directors liability insurance? That presumably protects me if its available?
Thanks for any help in advance.
P.S had to dash out so no replies from me until later tonight.
Right. Brief explanation.
I live in a development of 36 flats which are all leasehold.
However, the limited company that owns the leases is itself owned by the residents (36 shares, everyone has one share.). So basically we all own the freehold and all the flats were put onto 999 year leases a few years ago.
All the company basically does is organise the maintenance & insurance of the flats through a yearly charge (which is about to go through the roof!), decide which work gets done first, deal with inter-resident complaints, the usual stuff you might expect. There is no profit to be made from this, the maintenance money comes in, it gets spent or it doesn't and if it doesn't it just stays in the account for the next year.
I have been nominated for a directors position but I am not sure if should accept? I would like to be on the board to make sure I know what's going on (the director who has resigned but still lives in block is an insane racist and was sending out unwarranted threatening letters to some members of the development ) and I am trying to work out what I need to be worried about but can anyone confirm that I won't be liable for any financial penalty if anything starts going breasts up? (law suits, compensation claims, other peoples rent arrears etc.)
Somebody has mentioned directors liability insurance? That presumably protects me if its available?
Thanks for any help in advance.
P.S had to dash out so no replies from me until later tonight.
Edited by The Hypno-Toad on Wednesday 5th October 18:27
I am a leaseholder of a flat within a block of ten flats, and therefore a director of the self management company It is in the interests of ALL leaseholders to register their interests, say in how their block's finances, repairs etc. are managed, therefore you should accept directorship, voting and decision rights in their management company.
The Leasehold Advisory Service's web site (link below) offers invaluable advice for leaseholders/directors in self management etc. etc..
https://www.lease-advice.org
The Leasehold Advisory Service's web site (link below) offers invaluable advice for leaseholders/directors in self management etc. etc..
https://www.lease-advice.org
It takes up a great amount of time and you will get grief from other Leaseholders, when you have work undertaken are highly likely to be defined as a client by the CDM Regulations 2015 which carries personal responsibilities and many other responsibilities.
It is a no from me unless there is an incentive personally.
It is a no from me unless there is an incentive personally.
Brett748 said:
It takes up a great amount of time and you will get grief from other Leaseholders, when you have work undertaken are highly likely to be defined as a client by the CDM Regulations 2015 which carries personal responsibilities and many other responsibilities.
It is a no from me unless there is an incentive personally.
Absolutely, unless you're being paid and have been fully advised of all your legal obligations, I'd not go anywhere near that.It is a no from me unless there is an incentive personally.
Always, always ask 'Why' when anything like this ever comes along.
Why is this role required?
Why choose me?
This has patsy written all over it!
Decided to go against, which went down like a cup of cold sick with the people trying to get me to take the position.
I took a wider position and viewed what is going on in the rest of the world, realised that we are going to have increase the maintenance charge hugely over the coming couple of years and decided what I didn't want was to be the whipping boy for that with people coming to me every time of the day saying "We pay a fortune for the gardener, why was he having a drink of coffee during his lunch break?"
Shame I was sort of looking forward to being powerfully built...
I took a wider position and viewed what is going on in the rest of the world, realised that we are going to have increase the maintenance charge hugely over the coming couple of years and decided what I didn't want was to be the whipping boy for that with people coming to me every time of the day saying "We pay a fortune for the gardener, why was he having a drink of coffee during his lunch break?"
Shame I was sort of looking forward to being powerfully built...
My misses does it along with 4 other directors and a paid director (few hundred quid a month fee) who is from a proper management company. It does take up a bit of time to do tasks and they have a meeting teams meeting once a month. As annoying as she finds it sometimes, it does mean she has a say in what the fees go on, which contractors are used etc. If you aren't on the board you don't get as much of a say.
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