Why RMC directors need to be compliant

For all of these, compliant documentary records are required. The transfer of a share, for example, will require transfer forms and share certificates to be produced, with membership paperwork for companies limited by guarantee. Decisions by the RMC members or directors, made as part of meetings or outside, require appropriate resolutions and/or minutes recorded.

Most property managers will undertake this work for their RMC clients, making submissions to Companies House, producing compliant documentation and maintaining statutory registers and other records. They will often also convene and attend meetings, in particular the AGM. Typically, an agent will also provide a registered office service, managing statutory correspondence on behalf of their RMC clients.

The help provided by property managers can be invaluable to RMC directors, who can tap into their expertise and leave more time to focus on other important matters. 

Risks of non-compliance

There can be serious consequences of non-compliance, from which RMC directors will also appreciate protection. 

Companies House issues financial penalties for accounts filed late. Not filing certain documents is a criminal offence, for which RMC directors can be personally convicted. Individuals can also be disqualified from acting as directors. Failings can lead to the start of a compulsory strike off procedure, which if completed can be complex and costly to reverse.

Delivering benefits

Navigating – or avoiding entirely - disagreements between members and directors is easier if correct company secretarial processes have been followed. For individual RMC members, the process of selling their property – and avoiding additional fees from solicitors to rectify issues - will often be simpler if the register of members is up to date and other documentation in place. 

A full company secretarial service is a valuable part of a block management proposition. It can offer an additional source of income, differentiate you from peers and cement your status as your client’s trusted adviser, skilled in managing all the legal and other challenges faced by RMCs.

Automated solutions

In turn, software can help property managers complete company secretarial work, reducing the time and effort required in filing directly at Companies House and relying on manual templates. Good software will be comprehensive, supporting both RMCs limited by shares and guarantee. It will be easy to use, offering a high-level view of clients and deadlines. For the cost of the software, it should save time, improve accuracy and allow easy production of documents from compliant templates, thereby allowing block managers to deliver extra value to RMC clients.

John Korchak is Managing Director at Inform Direct