stark77
24-07-2008, 17:42 PM
Hi,
I'm hoping this is the correct forum to post in (it seemed the most appropriate and I got very helpful advice last time I posted here).
I own a flat that is part of a converted victorian building. The flat has a long lease (999 years) and the freehold is held by a limited company of which each flat owner has 1 share. Each flat owner is also a director.
We have lived here for just over a year, but have already had major difficulties with the woman who is company secretary for the freehold company who owns the ground floor flat. The details are long and tedious, but suffice to say she is without doubt the most unpleasant person I have ever met and insists on keeping tight control over all matters relating to the freehold.
In the entire time we have been in the property, we have managed to arrange just one board meeting to discuss the property. Numerous requirements of the freeholder have been ignored (such as maintaining the communal area, cleaning of communal areas etc.) despite our requests that they be attended to. The company secretary refuses to give us detailed access to the financial undertakings of the business and she is the only signatory on the bank account. So she is spending money owned by the company on god knows what and refuses to give us a full breakdown. Each year she takes an increasing amount of money from the account and pays it to herself for "heating and lighting" as she claims that the communal lighting is run from her meter (it probably is, I haven't checked). Last year it was £150. There is no heating at all in the communal areas and the lights consist of timer lights that go on for about 60 secs and then automatically switch off. There are 4 of them in total. I worked out that even if every flat occupant turned every light on twice a day, then the total electricity bill at peak rates would be somewhere below £10.
In total, over the last ten years she has probably taken over £1,000 out of the company without justification. When I queried the amount with her, I received a letter from the company accountants saying that it was a reasonable estimate as it was 25% of her annual bill, and that if I didn't like it I could pay for a separate meter to be installed at my own cost. I've spoken to the accountant on the phone as well, who openly told me that she was "probably taking the money as payment for running the business". The accountant is very peculiar indeed and I am assuming is personally known by (if not related to) the company secretary. Requests for information from the accountants are met with refusal unless it is cleared with the company secretary.
Anyway, disputes go back and forth about issues that need addressing such as repairs to the roof. The secretary insists that all repairs have to be handled by a guy who is known to do a terrible job. He made a mess of painting the front door and so the last thing I want him doing is making roof repairs as we're in the top flat. So I arranged for alternative quotes from specialist building companies and presented the cheapest to her in an attempt to resolve the situation - it was promptly ignored.
The latest issue though that has me totally furious is that I've discovered that accounts for the company have been filed at companies house. Accounts that I have never even seen, but according to the filing I have approved them at a board meeting that I never even attended!
Whilst I know she is taking actions that are almost certainly illegal, I don't know how best to resolve them without taking the freeholder to court in some fashion - which is ultimately suing myself! Does anyone know if the accountants have acted illegally by submitting board approved accounts that I as a board member and shareholder have never seen?
Are there any suggestions for how best to deal with this situation, because all attempts to reason with this woman have failed and yet she has the accountants on her side, she has access to the bank account which we don't, and all correspondance in relation to the business goes to her and we never see it!
Any help or suggestions gratefully received!
I'm hoping this is the correct forum to post in (it seemed the most appropriate and I got very helpful advice last time I posted here).
I own a flat that is part of a converted victorian building. The flat has a long lease (999 years) and the freehold is held by a limited company of which each flat owner has 1 share. Each flat owner is also a director.
We have lived here for just over a year, but have already had major difficulties with the woman who is company secretary for the freehold company who owns the ground floor flat. The details are long and tedious, but suffice to say she is without doubt the most unpleasant person I have ever met and insists on keeping tight control over all matters relating to the freehold.
In the entire time we have been in the property, we have managed to arrange just one board meeting to discuss the property. Numerous requirements of the freeholder have been ignored (such as maintaining the communal area, cleaning of communal areas etc.) despite our requests that they be attended to. The company secretary refuses to give us detailed access to the financial undertakings of the business and she is the only signatory on the bank account. So she is spending money owned by the company on god knows what and refuses to give us a full breakdown. Each year she takes an increasing amount of money from the account and pays it to herself for "heating and lighting" as she claims that the communal lighting is run from her meter (it probably is, I haven't checked). Last year it was £150. There is no heating at all in the communal areas and the lights consist of timer lights that go on for about 60 secs and then automatically switch off. There are 4 of them in total. I worked out that even if every flat occupant turned every light on twice a day, then the total electricity bill at peak rates would be somewhere below £10.
In total, over the last ten years she has probably taken over £1,000 out of the company without justification. When I queried the amount with her, I received a letter from the company accountants saying that it was a reasonable estimate as it was 25% of her annual bill, and that if I didn't like it I could pay for a separate meter to be installed at my own cost. I've spoken to the accountant on the phone as well, who openly told me that she was "probably taking the money as payment for running the business". The accountant is very peculiar indeed and I am assuming is personally known by (if not related to) the company secretary. Requests for information from the accountants are met with refusal unless it is cleared with the company secretary.
Anyway, disputes go back and forth about issues that need addressing such as repairs to the roof. The secretary insists that all repairs have to be handled by a guy who is known to do a terrible job. He made a mess of painting the front door and so the last thing I want him doing is making roof repairs as we're in the top flat. So I arranged for alternative quotes from specialist building companies and presented the cheapest to her in an attempt to resolve the situation - it was promptly ignored.
The latest issue though that has me totally furious is that I've discovered that accounts for the company have been filed at companies house. Accounts that I have never even seen, but according to the filing I have approved them at a board meeting that I never even attended!
Whilst I know she is taking actions that are almost certainly illegal, I don't know how best to resolve them without taking the freeholder to court in some fashion - which is ultimately suing myself! Does anyone know if the accountants have acted illegally by submitting board approved accounts that I as a board member and shareholder have never seen?
Are there any suggestions for how best to deal with this situation, because all attempts to reason with this woman have failed and yet she has the accountants on her side, she has access to the bank account which we don't, and all correspondance in relation to the business goes to her and we never see it!
Any help or suggestions gratefully received!