How to get rid!

This page gives guidance and information for any who wish to take control of their management company, get rid of CPM Asset Management (or any other unscrupulous managing agent) and ensure that their investment is kept safe.

This initial posting describes the ins and outs for those who find themselves in the same/a similar unfortunate position to that of the author 2004 to 2007. Namely, with CPM Asset Management as the sole Directors of their Management Company, left in the lurch by unknowing or unscrupulous developers, with no power, no say and no service. Further postings will follow to make the information as comprehensive as possible.

Take Control!

1.) Gather all the information outlined on the what you need to know page.The name of your Residents Property Management Company, the appointed directors, a list of members, knowledge of your lease.

2.) Get some support. Identify any neighbors who are as unsatisfied as you are and join forces. Use the list of members to identify any leaseholders who have addresses other than at your development and write to them explaining the situation. It is likely they will have bought to let. People who buy as an investment usually are very keen to protect that investment. It is possible though that they aren’t aware of how bad things are.

3.) Get some legal advice. Now that there is a few of you it wont be expensive. Also, the letters/demands that I suggest you send below will have somewhat more weight coming from legal representation.

4.) Force an EGM. If your experience is anything similar to the authors then you will have very little success in simply requesting an EGM for the purpose of appointing resident Directors. This is a question the author directed at CPM no fewer than 57 times between 2004 and 2007. Only under threat of a part 20 counterclaim from myself and a number of other residents did CPM halfheartedly acquiesce.

The author now realises we could have made things somewhat easier for ourselves with a fuller understanding of company law. Under section 303 of the Companies Act 2006 Members have the power to require the Directors to call a general meeting and the following section deals with the Directors duty to do so. Companies Act 2006 (PDF) section 303. You need only 10% of Members (leaseholders) support to do so or as few as 5% if no general meeting has been called in the last 12 months.

Write to the registered office stating;

“This letter constitutes an instruction pursuant to Sections 303 and 304 of the Companies Act 2006 requiring that the Directors of [Your RMC] call a general meeting of the Company for the general purpose of appointing Resident Directors.”

The letter should include the names and addresses of all members in support. They then have a maximum of 28 days to do so.

If you wish at the meeting to move a resolution to remove the current Directors (i.e. CPM) you must include a copy of the text of that resolution.

5.) Put yourself forward. Ensure that you and the other concerned residents are appointed as Directors and now you have control of your RMC.

6.) Interrogate the finances. The author strongly suggests that you interrogate CPM’s records of the company for irregularities (e.g. failing to invoice residents causing a deficit, double payments (to themselves or subsidiaries), needless expenses, etc.). By experience there will be many.

7.) Look for compensation. Once found seek compensation for the irregularities and, if you so wish, issue CPM with there marching orders.

NB. The authors RMC is currently run by the resident Directors themselves without having appointed a replacement Managing Agent. This may not be suitable for many so ensure you have a well researched and reputable replacement ready to take over.