Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

Looking for advice pls regards LTD company

2 replies

LegalAdviceNameChange · 17/09/2018 19:27

Hi, will try and keep this succinct.

We live in a group of 6 properties, we purchased property 2 from company A who owned all of the properties. Property 1 and property 6 both belong to directors from company A. Property 5 is owned by a friend of the owner of property 1. Properties 3 and 4 are privately owned like ours.
In the process of setting up a management company (LTD company) for the properties it has come to light that the owners of property 6 and 5 are giving their votes/decision making powers to the owner of property 1, therefore gifting him a 50% share of all “votes” on decisions to be made in the future. Is this legal? What can we do? It essentially gives him (and therefore company A) the power to run the management company

OP posts:
Angrybird345 · 17/09/2018 20:40

What does your governing document say about the right to cast votes?

prh47bridge · 17/09/2018 21:45

Regardless of what the Articles of Assocation say, they have the right to appoint him as proxy to cast their votes at general meetings on their behalf. Alternatively they can attend general meetings in person and vote the same way as him. There is nothing you can do to prevent that.

If, as a director of the management company, he does not act in the company's best interests but instead prioritises the best interests of Company A he will be in breach of his duties as a director.

New posts on this thread. Refresh page