A Flat Management company is a company that has been formed to manage a property divided into a number of flats or apartments. Each flat/apartment owner usually has a lease of their own flat, but they may also be a member of a management company that owns the freehold (or lease) of the entire building. As members of the company, the flat/apartment owners participate in the management of the building.
If the members own shares in the company, it is common practice in the company’s articles of association that shareholders who sell their flats/apartments must transfer their shares to the new owners ensuring the limited company represents the interests of all the current flat/apartment owners.
The company needs a specific Memorandum and Articles of Association where the capital is divided in as many shares as there are flats or apartments.
The Company is distinct in law from its shareholders and directors and enjoys limited liability.
Directors are not responsible for the debts of the company except where a personal guarantee has been given (for example to a bank) or where a director commits fraud. Shareholders are only liable for the amount due on any unpaid shares.
The company requires a minimum of one director who can be of any residency or Nationality; corporate directors are allowed as long as there is one natural person as a director.
A company secretary is optional.
It must have a registered office in England or Wales, which we can provide. If it is incorporated in Scotland it must have a registered office in Scotland which we can provide if required.
The company must end in Ltd or Limited
The company must file an annual return and accounts each year, these are on public record.
The company enjoys protection of its name.
We can incorporate a company within 2 hours and we also provide the optional service of electronically appointing directors.
Telephone or email us for an immediate FREE name check.