A Flat Management Company is a company formed to manage the shared areas of a collection of associated leasehold or freehold residential or commercial units, e.g. a block of flats, a housing estate or a shopping centre (the Property).
Each owner of a unit will hold a share, or be entered as a member, for each unit they own, giving them voting rights in proportion to the number of units held.
The Company may or may not own the freehold of the Property.
A Flat Management Company may be limited either by shares or by guarantee.
A key feature of the Articles of Association of a Flat Management Company is that the owner of a unit must transfer their shares to the new owner when selling their unit (or be removed as a member in the case of a Flat Management Company limited by Guarantee).
A Flat Management Company may be run by the owner of the Freehold of the Property, but is most often run by the Leaseholders/Residents of the units.
If the Property already has a Flat Management Company run by the Freeholder then the Leaseholders may be able to force the Freeholder to give them the responsibility for managing the property – please see our section on Right to Manage Companies if this situation applies to you.
Our fees for the formation of a Flat Management Company are £66.99. This is slightly more expensive than our standard limited companies because the process for a Flat Management Company requires manual intervention from our Company Secretarial department to draft the Articles for the particulars of the Property.
During the order process you will have the opportunity to purchase our Flat Management Company Registrar Services. This is an annual service whereby we will act as share registrar for the company and includes the filing of the Annual Return with Companies House.
Each time a leaseholder sells a unit then the buyer’s solicitor may correspond with us to process the change in membership. We will request the signed Stock Transfer Form, existing Share Certificate and evidence that the buyer is entitled to membership under the Articles of Association. We will prepare Director’s Minutes to authorise the transfer, cancel the old membership certificate, prepare the new and take care of all other formalities or complications.
There is a fee of £60 + vat payable for each transfer, which will be charged to the buyer of the unit, via their solicitor.
For larger Properties the changes in membership can be complex, as can the Annual Return, so using the services of a professional registrar can reduce the burden of your responsibilities.
Any Questions? Call Us FREE! 0808 168 3676
Do you require further assistance? Call our FREE helpline to speak with our professional advisers.