Good directors are fundamental to the success of a Residents’ Management Company. As a director of a limited company, the UK law states that each RMC director must:
- Follow the Residents’ Management Company’s rules as laid down in its Memorandum and Articles of Association.
- Always make decisions for the benefit of the RMC and its leaseholder members – never for the individual.
- Maintain statutory company records, report any changes and ensure all mandatory returns are filed with Companies House and HMRC.
- Ensure the RMC service charge accounts present an honest and fair picture of the RMC’s finances.
- Ensure compliance with all relevant health and safety and fire risk legislation.
- Arrange the necessary insurance cover to help them fulfil their responsibilities as a director, to ensure both they and the development are adequately protected.
- Ensure that the obligations of the lease are carried out by the managing agent.
- Promote the success of the company for the benefit of its members.
- Inform the other directors and shareholders of any potential conflict of interest or if any director might profit personally from a transaction the RMC makes.
In short, RMC directors must comply with all of the above and carry out specific annual duties, many of which include liaison and agreement with your appointed managing agent. These include:
- Preparing the RMC statutory accounts, signing and submitting to Companies House as well as the Confirmation Statement and all changes (i.e. appointments, resignations, change of registered office, etc.)
- Arranging the signing of all other statutory documents.
- Approving the annual service charge budget.
- Operating on a board with other RMC directors and attending meetings with your appointed managing agent.
- Working with the managing agent on expenditure and major works.
- Providing clear instructions to the managing agent for all other items that may affect the smooth running of your development.
Want to know more? Just get in touch…
Whether it’s your first time selecting a managing agent, or you’re looking to switch providers, we can help. Call us on 01582 393 756 or get in touch below:
Residents’ Management Companies
- How do I become a director for my Residents’ Management Company?
- I’m unhappy with the service provided by my current managing agent. Can I switch to a new one?
- What are the legal requirements of an RMC director?
- What are the roles and responsibilities of an RMC director?
- What do I need to consider when tendering for a new managing agent?
- What insurance does a Residents’ Management Company need?
- What qualifications and accreditations should a managing agent have?
- What service and support should I expect from my managing agent?
- Where can I find further information about becoming an RMC director?