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Freehold owned by Company, Leaseholders own Company

A micro company that I am a one third shareholder of has filed accounts showing a deficit on P & L of £2,571. Previous period deficit was £613. The note shows:,Balance at 1 April 2009 £(1,098), Loss for the period £(754), Movement during the period    £(719), Balance at 31 December 2009 £(2,571)
 
 Yes Opening balance is not what is on face of Balance Sheet
 
I have challenged these figures (as well as others) as not being compliant with FRSSE.
The response was
 
“We can provide you with a more detailed breakdown of this figure if you would like it. Potentially this extra detail can be added to the published accounts to make it explicit but this seems pointless as the accounts have been filed and accepted by Companies House and only affect yourself and the two Directors who are happy with the accounts.”
 
The Company owns the freehold of a house that has been converted into flats. Each leaseholder owns one share.  From 1983 to 2007 the company made no surplus or deficit. Since then the current Directors (subsequent leaseholders) have incurred expenses that they are aware cannot be paid. I assume that the current creditors are the Directors who have paid for these costs and charged them to the Company. The only asset is the freehold.
 
This is likely to continue.
Any suggestions as to what I can do.

Martin

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23rd Nov 2010 11:48

What?

Maybe I have missed something, but what exactly is your question?  What can you do... about what?

Was it intended that the company would charge the leaseholders a management fee to cover the expenses incurred - but that's not done for some reason since 2007?

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23rd Nov 2010 15:02

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What can I do about incorrect accounts?

What can I do about Directors who squander the company's assets?

Eventually the freehold must be sold to pay the creditors. I effectively own one third of the value of the freehold.

Until 2005 management and accounts was done for free by yours truly. Then for two years I was paid £300pa as Company Secretary and did management and accounts. By prior agreement this was paid for by the shareholders - not leaseholders (including me). 

Then new leaseholders/shareholders/Directors know better and accused me of incompetence, theft, and lying.

2 years later the company and accounts are in state described.

Not entirely an accounting question

Martin

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