Q&As

Is a Right to Manage (RTM) company entitled to give notice of its claim to acquire the right to manage, where most of the 50% of qualifying tenants are members of the company, but two of them are directors of it (we understand that directors of the RTM company cannot also be members of the RTM company)?

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Produced in partnership with Alexander Campbell of Field Court Chambers
Published on LexisPSL on 27/09/2018

The following Property Q&A produced in partnership with Alexander Campbell of Field Court Chambers provides comprehensive and up to date legal information covering:

  • Is a Right to Manage (RTM) company entitled to give notice of its claim to acquire the right to manage, where most of the 50% of qualifying tenants are members of the company, but two of them are directors of it (we understand that directors of the RTM company cannot also be members of the RTM company)?
  • Acquiring the right to manage
  • The composition of the right to manage company

Is a Right to Manage (RTM) company entitled to give notice of its claim to acquire the right to manage, where most of the 50% of qualifying tenants are members of the company, but two of them are directors of it (we understand that directors of the RTM company cannot also be members of the RTM company)?

Acquiring the right to manage

The Commonhold and Leasehold Reform Act 2002 (CLRA 2002) makes provision for tenants of certain premises to create a right to manage company and to acquire the right to manage the premises.

CLRA 2002, s 79 requires a right to manage company (RTM company) to give notice of the claim. The right to manage company must comprise a specified amount of qualifying tenants within the subject premises (the term ‘qualifying tenants’ is defined in CLRA 2002, s 75).

The composition of the right to manage company

CLRA 2002, s 79(4) provides that where there are only two qualifying tenants within the premises, both must be members of the RTM company.

CLRA 2002, s 79(5) provides that in any other case (ie any case where there are more than two qualifying tenants), the RTM company must comprise a number of qualifying

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