Hello all
I hold a long lease on a flat and one share in the Residents Management Co. so it is lessee-owned. The flats and Estate are held in Trust for the Transferors. The RMC has not complied with the Lease and has not supplied certified annual s.42 accounts since 2008 as written in the Lease and statute. LVT Judgment 2010 that wording of lease is that no service charge payable unless and until accounts produced in accordance with the Lease. In 2014 the RMC made me bankrupt for non-payment of service charge for years 2007, 2008, 2009 (years involved in LVT Judgment). No pre-action letter, no account details, and the amounts claimed not backed up by certified accounts. The RMC declared itself as Dormant but has not provided any accounts to shareholders since 2012. My assets are frozen by the Trustees in Bankruptcy KPMG, with a charge on my flat. If there is no bank account, I cannot know to whom this sum of money (£40K) is being paid to? There is a law firm involved who recently lost a case claiming that when the Superior Lease is transferred to the RMC they did not have to observe the lease contract. The Judge referred to the Supreme Court ruling that a contract is as understood by the parties and s.42 is a contractual provision, and any costs outside s.42 is voluntary. I am wondering whether the RMC is hiding insolvency. Service charge is now being paid into the company account of a MA and there appears to be overseas bank transfer arrangement with the same account number and it seems service charge is going off shore. This suggests attempt by Directors to get assets out of the hands of creditors. I am happy to pay outstanding s.42 service charge, but without certified accounts, it seems I have to pay amounts which I do not owe. Does anyone have any idea what I can do?
Replies (3)
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I agree take legal advice. There is a possible oppression of Minority shareholder case to be put to the courts. You could possibly apply to the Court to have the company wound up.
I repeat the first point take legal advice,which no doubt you took when presented with a Bankruptcy Petition- - or did you??