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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 30929
Experience:  Over 5 years in practice
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Q. re Company Law BACKGROUND Right to manage company set

Customer Question

Q. re Company Law
BACKGROUND
Right to manage company set up and effective from 11th May.
Set up with former managing agent of the block.
Sole director of freehold company was invited to join RTM board as she is also a leaseholder.
other 4 directors of RTM - 2 have a share of freehold, other 2 are just leaseholders.
Freeholder then recruited other 2 freeholder directors onto the board of the freehold company.
The freeholder then tainted her fellow freeholders against the managing agent.
The Managing agent had already signed a management agreement with the RTM company before the freeholder joined and there was no physical evidence against the managing agent.
The freeholder has chosen now to try and claim the RTM company is incorrectly set up without any credible evidence.
The freeholder is effectively sabotaging the RTM board.

QUESTION
Can the freeholder remain on the board of the RTM with such a blatant conflict of interest.
ie their actions are so clearly in the interest of the freehold company alone and opposed to promoting the success of the RTM company?
If not, how can they be removed from the board if they refuse to resign?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome to Just Answer.

How many shareholders does the RTM company have?

Kind regards

AJ
Customer: replied 3 years ago.

The RTM has 23 shareholders/members

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Do more than 50% of these members eligible to vote support the removal of this director?

Kind regards

AJ

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