Company limited by guarantee owning freehold

Company limited by guarantee owning freehold

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We have just set up a Company limted by Guarantee to purchase the freehold of a property divided into 4 flats, each owner becoming a member. From what I understand the "Company" will just need to prepare accounts showing the property freehold and the loans, and will effectively be dormant. I will also need to prepare service charge accounts (but not file them) to show what each member pays in and what the money is being spent on. Presumably if this is the case, no audit is required (as Company is dormant, and service charge accounts not filed), or in the first year is the company not dormant as i have to show the initail transaction? Any help/examples appreciated

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By petersaxton
21st Aug 2012 14:14

Not dormant in the period of purchase

You can make sure it would be dormant in the future.

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By hertsaccountant
21st Aug 2012 15:55

Would it ever be dormant ?

Surely each year there will be transactions for service charges, amounts received and paid out, so why would it ever be dormant ?

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By petersaxton
21st Aug 2012 16:01

Surely not

The money CAN be held on trust. It depends on the lease.

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By Chris Smail
21st Aug 2012 16:16

Read the leases

I bet the idiot solicitor wrote that the company and the service charge had to be audited anyway.

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