Flats management seized by a bullying leaseholder

[Ernest King]

Dear Sir


Here is the problem

My Mum lives in a retirement bloke of flats, she has a long lease and a share in the Freehold.

The Property Management company has a Director and Secretary The Bully, and another old lady Director.

The bully runs the place according to his rules and regulations? Which are not out of any rulebook I have ever read?

For Example

Appoints himself gardener at £3500 per year, no consultation with the leaseholders,
Appoints himself Manager at £1000 per year.
Also gets paid for DIY. Gets paid expensives, things like keeping his car on the road.
The bully has all the bank accounts, the cheque books, writes himself cheques, refuses to explain where money has gone, has not allowed tenents to see accounts.

ETC


I have told my mum to withhold her service charge, as this is her right, as the demands are not in the correct format and service are not getting carried out.

However, mum being 80 with a disability is a vulnerable adult, worries about unpaid bills, and pays this charge. Mum is honest and has worked all her life. Why should she give money to this rogue? However, she will not with hold this money, she is of ill health and the worry is too much for her.

The question is what I can do. I know about the leasehold tribunal, and about getting surveyors and auditors to back my case. The problem is the money, What I need is a way forward that is not going to cause my mum further stress, but is simple, and quick.

I have also written to Lease, and Aim, these organisations are overwelmed, and have as yet not got back to me with a solution.

Can anyone out there suggest a way to get this mess sorted.

Ernest

[jeffrey]

Too long. Please summarise.

[jta]

I read it Jeffrey

Summary
1. Bully director.
2. Needs a good kicking.
3. How?

[thevaliant]

You have, to an extent, found your own way out and answered your own questions.

The 'tenant' - former director (but shouldn't have been) is bullying the genuine lessees. All that will be required is for one lessee to take the lead, sack the 'bully', take all the records and run things himself/herself or else appoint a genuine third party to run the maintenance.

Put simply, someone needs to stand up to him. If he won't play ball (eg, by handing over all records and acknowledging he has been 'sacked') then you will need to engage a good solicitor.

Best you can do. Someone has to step up to the plate.

[Ernest King]

Yes, but none of the tenants/lessees are strong enough. I have spoken to several lessees, all agree he has to go, but none of them want to get involved, They are too scared. Being older people do not want change, or are afraid of change. Some of the lessess are in there 90.


Is there anything I can do.

Ernest

[thevaliant]

I'm afraid *you* can't do anything, unless you get some form of power of attorney. It is the lessees who must act, not you.

[Poppy]

The lessees must take action to compel the management company to act within the law. That action may mean having to pay for legal assistance if the lessees are unable to do so by themselves.

You will probably have to think of a way of getting the other lessees to agree to some sort of legal action and how they ultimately pay for that. I am expecting that in the long run paying for legal assistance now will save money on future unwarranted charges by an incompetent management company.

Ernest King, you need to be the catalyst in all of this. Good luck.

[Ernest King]

Thank you for all your help. what if I was able to get power of attorney, how would that help?

Ernest

[jeffrey]

Thank you for all your help. what if I was able to get power of attorney, how would that help?

Ernest
You could then formally act for your mother and execute Deeds etc. on her behalf.

[thevaliant]

There is also another way:

Before you edited your post, I recall you saying that this 'bully' was merely a tenant, not a leaseholder. Have you tried contacting the leaseholder of the flat were he resides to inform him of his behaviour? Surely the leaseholder would be displeased to note that his tenant is probably living rent free at flat (his charges probably equal his rent right?).

Another option could be to have the lessee appoint YOU as managing agent, and then you can deal with proper transfer of paperwork, before actually handing it over to a proper third party managing agent. You will then have to face the bully and use threats of legal action if he will not comply.

Finally, don't bother with trying to get the auditors/surveyors onside. They won't be interested.

[jeffrey]

I recall you saying that this 'bully' was merely a tenant, not a leaseholder. Have you tried contacting the leaseholder of the flat were he resides to inform him of his behaviour? Surely the leaseholder would be displeased to note that his tenant is probably living rent free at flat (his charges probably equal his rent right?).
I thought that OP was using the word 'tenant' as synonymous with the word 'leaseholder'.

[Ernest King]

I am using the word tenant, as this bully is not a leaseholder or shareholder. He is just a tenant.

I will get in contact with the leaseholder of his flat, to explain the situation. It is an avenue that I had not considered.

Thank you

[Ernest King]

It is such a ridiculous situation. This tenant is dictating to the leases how much service charges they should pay, he is in complete control of the bank accounts. He pays himself Management Fees, Garden fees, expensies, this year he has demanded £21000, that’s a lot of money to hand over to this self-appointed bully.

This is why I am so worried. The lessees get very little back in the way of services. I am sure that this is immoral. There is nothing in the articles of association to stop a non-lessee being company Secretary, etc.

My mum has waited a year to get her ceiling repaired, it has been water damaged from a leak in the roof.

Ernest

[jta]

Am I missing something here? If this guy is an employee of the lessees could they just be able to write him a letter and sack him? Who appointed him to the job in the first place? What about AGMs? All the power is with the leaseholders.
And if he is a physical sort of bully then a word from a friendly bobby might cause him pause if he wants to make life difficult.

[thevaliant]

Am I missing something here? If this guy is an employee of the lessees could they just be able to write him a letter and sack him? Who appointed him to the job in the first place? What about AGMs? All the power is with the leaseholders.
And if he is a physical sort of bully then a word from a friendly bobby might cause him pause if he wants to make life difficult.

This might be the simpliest solution. A letter written from the directors, removing him from office. Explain that they have appointed 'X' instead and he should hand over all books and records to 'X'.

[Poppy]

Outrageous - this person is merely a tenant! You should have mentioned this very important aspect from the start. He has no right to dictate to lessees.

Write a letter to the directors and the secretary with both your signature and your Mother's and forcefully object to being unlawfully dictated to by a mere tenant. Insist that this person takes no further part whatsoever in the building's management. Additionally remind them to stay within the law. This unlawful activity and charging must stop right now. If the directors and secretary don't know how to act within the law, tell them to learn and learn quickly.

If you set the tone of the letter right, there'll be no need to pay for legal intervention.

Bloody tenant dictating to lessees - fcuking cheek!

[animal]

If I understand corrently, the tenant is also director of the management company which also owns the freehold, therefore he can dictate, at least in accordance with the lease. He represents the freeholder/lessor...

Of course the shareholders can dismiss him, however, elderly people are often fearful of consequences. I have a similar situation where many shareholders are upset, but fearful of backing anyone who will deal with the situation.

The OP needs to get 75% (I think) to dismiss a director, and needs to organise a replacement. There are also legal issues if the dismissed director decides to make trouble. If the OP can find a replacement, then it may be when the next round of voting occurs (usually every 2 years), the director could be removed by majority.

[Ernest King]

Sorry my first posting is not very clear; I was asked to edit the post by Jeffrey as too long, and in doing this I accidentally missed out an important fact. Which is?

The bully was rumbled about 6 months ago, he was not a lessee or shareholder therefore had no right to be a Director and was forced to resign as Director. However, he stayed as Company Secretary and continues to rule. The new Directors appointed are useless, they will not reply to letters of complaints. Will not confront the bully.

Because these are retirement flats, a majority of the tenants are over 75, and vulnerable, also although they are not happy with the situation are also not able or willing to act. However, I am prepared to do what ever it takes.

Would I be able to call an AGM if I had my mother’s power of attorney?

I was also wondering about the legal aspects, as this bully does not follow any rulebook I know on flat Management.

The whole situation seems unlawful. But they does not seem to be a clear way forward.

Ernest

[animal]

To call an EGM you need 10% of shareholders unless this is altered by the articles. AGM should occur every year, unless the requirement has been removed in the articles.

The directors decide who is company secretary and it is no longer required to have one (unless your articles stipulate there must be one)
I suggest you check the service charge invoices to ensure they comply with the requirements of L&T act.

1. Do they have landlord's name and address. Must be an address within UK. In the case of a company, must be registered office. s47 L&T 1987

2. Did lessees ever receive a notification of Landlords name and address? s48 L&T 1987

3. Was a summary of rights and obligations supplied with recent (since Oct 2007) service charge invoices? L&T s21B 1985

Breach of any of the above gives lessee the right to withhold service charge.

4. Lack of consultation limits lessee liability to £250 for major works or £100 for long term contracts. s20 L&T 1985

Any of the above can be used to put pressure on the management, but be aware that if carried to conclusion, could result in company becoming insolvent.

s24 L&T 1987 gives lessee right to apply to LVT to have a manager appointed, thus bypassing the shareholders/directors.

I would suggest the cheapest option is to persuede a majority to eject the bully. Any legal action is expensive and IMHO a game of chance.

[Ernest King]

Hello Animal

You make some very good points; the service charge invoice is not the right format. A summery of rights and obligations were not supplied. The management Company is on the Invoice, however not the address of the registered office, or where to send payments.

I have written and spoken to the Directors about not complying with all relevant statutory and regulatory requirements. No one listens.

I even wrote to the housing ombudsman service for advice, they were very helpful, said that they can only deal with complaints if the landlords are members of their Scheme, this Management Company are not members of any scheme, a law unto itself.

The Ombudsman advised me to exhaust the Companies complaint procedure first and to keep track of all letters, telephone conversations etc.

The problem is this company has no complaints procedure, I have written letters to two Directors, my mother has also written letters, not one of the letters has been acknowledged and no follow up action.

I will write o the Directors again, raising the points you have listed.



Ernest.