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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I live in an area that has a residents association, we are

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I live in an area that has a residents association, we are on a private road. It has been suggested that we convert from an association to a ltd company and I want to know if there are any pitfalls of me as a private tenant agreeing to this or, for some of my other neighbours who own their properties. Currently we pay a voluntary annual fee for the upkeep of the road (which is in a terrible state), I would like to know if we were a ltd company could the directors increase the fee and would we be then obliged to pay it as opposed to the voluntary arrangement currently. Also how can we decide out of the residents (175) who would be the directors of a ltd company?

UKSolicitorJA :


UKSolicitorJA :

Who has suggested that you convert into a limited company and have they said why you should do so?

UKSolicitorJA and 3 other Law Specialists are ready to help you
Customer: replied 3 years ago.

One of the members of the association has been speaking to a member of Surrey County Council who said that we should consider going to a ltd company. I want to know what benefit or pitfalls that would mean for the residents. Currently we have a chairman and secretary of the residents association (we are not a block of flats and we have no communal areas) who are a married couple (not happy about that one either but that's not the point). I need to understand why we should change to a ltd company and how this could affect me as a private individual.


In my opinion, it will be an administrative nightmareto operate as a limited company seeing that there are 175 residents and the costs of running the company will very likely be far higher than the present arrangement as the compliance issues for the limited company will be far greater.

It will also have to be a public limited company due to the high number of members (175) and as you say, there may be issues surrounding the appointment of directors, holding of meetings etc.

Personally, I see you paying more if the association goes the way down of the limited company.

Can I assist further?
Customer: replied 3 years ago.

Would they need to get all of the residents to agree to the Ltd company or could they go ahead without full agreement? also, we actually don't know who owns our road (we've been trying for years to find out) so how can they form a ltd company

The council may be able to advise on the ownership.

Yes, all the residets would need to agree if they were to become members of the company, you cannot froce someone to become a member/shareholder without their consent.

All the best