Freehold changed the managing agents without any notification

[Nibor]

I fairly recently bought a leasehold flat, in a buidling with seven flats. We also own the freehold to be building and I am a shareholder in the Ltd company that owns the freehold.

I received a letter the other day from a managing agents saying that they had been appointed as the new agents for the property by the freeholder. This was the first I had heard about this. The company sec had apparently sacked the old agents and installed this new company. I'm not too happy about being left out of the loop. Had I been consulted I would have suggested we manage the building ourselves, saving about £1500 a year in fees (we did this very successfully at another property I owned).

Should I have been consulted about this change? Is there a legal requirement to give leaseholders notice prior to a change in agents?

I think I should have been consulted as a share holder in the freehold, and maybe there should have been a vote, but this could depend on the Ltd company's articles etc.

[jeffrey]

If it's a 'qualifying long-term agreement'- see s.20 and s.20ZA of LTA 1985, revised/inserted by 2002 Act- L had to consult all lessees.
Ask Directors whether Co. Sec. was acting with or without their authority.

[Poppy]

Is the company secretary a shareholder of this company?

[jeffrey]

Is the company secretary a shareholder of this company?
Why would that be relevant? Better to ask, "Is the company secretary a director of the company?"

[Poppy]

I agree, that's more relevant, I made a hash of the question.

[dominic]

Why would that be relevant? Better to ask, "Is the company secretary a director of the company?"

Also, check the articles of association of the freeholder company to which you own a share.

Certain decisions may require a shareholder resolution or board resolution, such as incurring sums in excess of a certain figure, or changing service providers where the amount payable is significant.

Perhaps also try to get the views of the other shareholders/leaseholders, it may be they are not happy also. If more than 50% of you are unhappy, it may be you can do soemthing about it.

As Poppy/Jeffrey say, only a director may enter into contracts on behalf of the freeholder company, a company secretary has no such power, unless there is a board resolution giving him/her delegated authority.

[Gordon999]

Send your proposal to the company offering to manage the service charge account with savings and ask if the new managing agent contract terms is subject to 90 days notice for termination ?