FAQ for Flat Management Companies

What is the authorised share capital of a flat management company

Typically, a property divided into 8 shares will have an authorised share capital of £8 divided into 8 shares of £1 each. Each flat owner will own a share in the company. As shareholders, the flat owners have their say in running the limited company.

What about Memorandum and Artilcles of Association?

TheMemorandum and Artilces of Association are based on Table A, as for a private limited company but it will include specific clauses tailored for a flat management company. For example, the Articles of Association will usually say that when a flat owner sells his flat his share must be transferred to the new owner.

What does the company actulaly do?

A flat management company is commonly used to hold the freehold of a property. The property may be divided into various dwellings or flats.
The company is often used for collecting a central pool of cash for carrying out repairs and maintenance to common parts of the property.

What are the requirements of a flat management company formation?

The requirements are the same as for a limited company with share capital:
A minimum of two officers, one of whom must be the company secretary,
A minimum of one Member
Registered office address in the country of incorporation

What are the annual costs of maintaining the company on the Register?

It should be particularly noted that the directors of a flat management company commonly overlook the annual compliance requirements laid down by Companies House with the result that the company gets struck off the Register. The property and any other assets owned by the company are frozen and go to the bona vacantia department. Our professional company restoration service can release such assets but it is an expensive procedure, A lot of inconvenience and expense can be avoided by complying with the filing requirements. Accounts and annual returns have must be filed even if the company is doing nothing more than holding a property. Please contact our accounts department if you would like us to maintain the company for you.

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