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tdlawyer
tdlawyer, Lawyer
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Experience:  11 years experience of general practice.
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We are an RTM (Right to Manage) Company for a block of 30 flats.

Resolved Question:

We are an RTM (Right to Manage) Company for a block of 30 flats. We understand the Mem and Arts were amended by statutory instrument brought into force in 2010 to be brought more in line with general company law. I am one of 7 directors, my partner and I who jointly own our flat, 3 other lessees and our chair and her husband who jointly own their flat.

My question is can my partner and I vote for myself when I put myself up for chair, this gives us 4 votes against 3. If I cannot vote for myself it is 3/3 and existing chair has casting vote, and if neither of us can vote for me then the existing chair stays put and I lose, much to 4 directors dismay and most lessees.

I would be very grateful for your opinion. I give some background below.

The RTM Company was formed about 7 years ago and run by a husband and wife who did manage to organsise any of the badly needed works. The works only started in 2012 after the husband and wife just walked out, the present chair took over and co-opted her husband and my partner and I onto the board. Because this chair has stated for many months she wanted to step down I put myself forward to be chair at our directors meeting last week and won by 4 votes to 3. However, these four votes included myself and my partner which the chair and her husband have discounted. Lessees are very unhappy with the way our chair continues to bulldoze the company along, to authorise payments and works by taking unilateral decisions or bending the rules. Works do need to be carried out, but at a pace which most lessees can afford. However, the high costs are crippling lessees financially and she is upsetting them with her bullying attitude. (Service charges are £3,000 per year plus S20 works have been about £7,000 in 2012, and £6,000 in 2013 and £4,000 this year for our flat which is one of the larger ones. However, the market value of the flat is only £160,000.
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Welcome to the website. My name is XXXXX XXXXX I can help with this.

tdlawyer :

Is there any restriction in your Memo and Arts that prevent you voting for yourself as Chair?

tdlawyer :

There isn't usually, but I just thought I should ask.

Customer:

Hello, thank you, XXXXX XXXXX is no restriction at all

tdlawyer :

Then in that case, everybody can vote on who is the director, including the intending director.

tdlawyer :

Additionally, you could all vote in a shareholder meeting to do the same thing (assuming all those lessees are shareholders, which is how this works with RTM), where all the lessees vote to remove existing directors and/or replace/add new directors.

Customer:

Thank you. Could you just confirm for clarification that at a board meeting of directors the same applies in relation to electing the chair of the board of directors, ie the proposed chair and her partner can vote for her.

tdlawyer :

Yes, that's right, unless there is something in your articles that suggests otherwise.

Customer:

Thank you, XXXXX XXXXX

Customer:

Thank you, XXXXX XXXXX

tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience: 11 years experience of general practice.
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