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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31300
Experience:  Over 5 years in practice
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Hi. I need help with corporate law. I live in the property

Customer Question


I need help with corporate law.

I live in the property which is part of share in freehold. we have 5 flats each has 1 share. we have 3 directors (I am one of them). one flat is empty and owner never participate in any activity but pays his service charge share. so basically we have 4 active shareholders.

we had agreement that everyone should be director so no one uses directorship for his personal gains. however nobody really did anything for years so we didn't enforce it.

we have problem with parking space for few years where one of us wants to get more than others (regardless lease - they have 1 lot but park 2 cars for many years).

we put up with it trying to be good neighbours.

we also have management agent who is reputable in this area.

recently the person who started the parking trouble (who is a director) went to the agent and by false pretence that he is acting in name of the all directors made the agent believe in some fact about parking arrangement that was not true (I can expand on this but think it might be not necessary). the agent then sent letter to all of us saying the directors want everyone follow that new arrangement.

obviously this is illegal by the corporate law. firstly no other directors new nor they would agree (and I understand that whatever directors do for the company must be passed as a motion on directors board meeting which we never had). secondly changing parking arrangement is outside the directors power as this is inscripted in the Leases each property holds separately.

my view is that this person committed criminal act - abuse of trust (broken the gentlemen agreement between all the shareholders), abuse of the office power (using directorship for personal advantage, lying to the management agent).

my actual question - am I correct about the criminal element? can this formally speaking (as a worse case scenario) lead to the police be involved? can this person be actually charged?

why I am asking - is that the problem with this person is escalating as we speak and I feel that soon it is going to get to a physical abuse so I believe any sound evidence from this person behaviour in past will help to prove his abusive and antisocial tendencies if things get out to the police / court (tell me if I am wrong here).

Submitted: 4 years ago.
Category: Law
Expert:  Stuart J replied 4 years ago.
What does the lease actually say about parking spaces? Is parking the only issue?
Customer: replied 4 years ago.

Thank you


each flat has a lease. each lease outlines parking space for each. one has 2 others have 1 each. the property in questions has 1 but parks 2. and still complaining. their 'extended family' visit them almost daily and park 3 car etc...


however the problem is not parking - it is long story and will be dealt differently and separately.


problem that the guy in question does not hesitate to go as low as doing small damage to other people things left outside, scratching paintwork on the cars etc.


we cant answer in the same way. we need leverage.


currently I want to know if he broke corporate law by lying to the management agent and how this can be used.


he also lied that he is paying to the 5th guy (who is never present) for 2nd parking space but recently that 5th guy came around and told 2 of us that he never heard about it. I asked the agent to write to the 5th guy for written confirmation. waiting on it..


so basically we have a mean dirty individual and we want to know how to deal with it.


mind this is happening not in council estate. this is next to Harrow school property. all of us highly educated people (except the trouble maker - he is of indian decent came to live in the UK 5 yrs ago, lives by his own rules, large number of relatives supports and encourage him).


please advise

Expert:  Stuart J replied 4 years ago.

I am going to opt out of this for another expert to consider. Please do not reply or it comes back into my inbox. Another expert will pick it up at some stage. It is now open to all experts.