Clewer Court Residents Ltd is a Residents' Management Company (company registration number 01519055).
What is an RMC?
Records suggest that there are over 60,000 registered RMCs and a high proportion relate to flats. The highest concentrations are in the South East, South Coast, Bristol & Bath areas, Home Counties, South Midlands and the North West.
A RMC protects the interests of the leaseholders. RMC’s typically manage common parts of the building although they may have other responsibilities. Clewer Court has parts common to all the flat owners living in it: boundaries, roofs, halls, drives and gardens etc. These all require maintenance, insurance, lighting, etc.
Monies for day to day requirements is collected within your service charge requests. However, additional monies may be required for larger projects, i.e. replacement roof. The individual flat owners fund these costs, often by making periodic contributions into a reserve (sink) fund.
The Clewer Court RMC is run by directors, who are unpaid and appointed by and from the residents.
The RMC has a Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer Clewer Court, which is divided into several dwelling units and flats, with each leaseholder owning a share in the company. The leaseholder is obliged to transfer the ownership of the share to the new leaseholder when disposing of the property.
The characteristics of RMC’s
The majority of RMC’s are limited by share, although some blocks favour limitation by guarantee.
A formalised RMC is very different from an informal residents association: it carries legal status and offers greater protection to all involved.
Although Property Law regulates matters related to long leasehold tenure, Company Law regulates the setting-up and operation of flat management companies.