From the 9th November Companies being formed to enable leaseholders to take over the management of their block of flats, Right to Manage Companies (RTM) will need to adopt a new-style set of this follow from the 2006 Companies act which seeks to make company law more appropriate for smaller companies and replaces the memorandum of association and articles of association with a single document, the articles of association.

The form and content of the new articles of association of RTM companies are prescribed by Government and are available on the Office of Public Sector Information website

The new articles are based upon the 2006 Act model articles for private companies limited by guarantee, and will ensure consistency with these wider company law changes.

The Right to Manage (RTM) introduced by the Commonhold and Leasehold Reform Act 2002 (the 2002 Act) gave long leaseholders the right to join together to take over the management of the premises containing their flats. It required an RTM company to be formed in order to exercise this right.

While the 2006 Act changes came fully into force on 1 October 2009 the new prescribed articles for RTM companies reflecting these changes will only come into force on 9 November.

For existing RTM companies there is a transitional period until 30 September 2010, at which point the new articles of association will automatically apply to all RTM companies, and they will not be required to file the new model articles.

DISCLAIMER

Any external products and services listed do not necessarily carry the endorsement of flat-living or imply a recommendation. flat-living.co.uk does not recommend any of the advertisers and cannot be held responsible for any work undertaken by or purchased from any advertiser on this site.

Whilst flat-living makes every effort to ensure that the articles included in the web site are accurate at the time of publication it is inevitable that, as time goes by and circumstances change, the articles may contain out of date information. Readers are strongly urged to check the content of these articles before taking any action that could have legal or financial consequences. flat-living shall not be liable for any loss, damage or inconvenience arising from inaccuracies.