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Can I remain a director of the Management Company if my flat in the building it controls is sold?
I am a director of a flat management company and am the owner of one of the flats, though I am not resident. I rent my flat out to a tenant who is in the process of buying the flat from me. The flat management company does not own the freehold to the property, the owners of the flats do: myself and two others although there are four flats in the property. I have been assured there will be no problem with the sale in regards to this. I would like to retain my interest in the management company after the flat is sold. My question is can I do this? I presume the leasehold and associated part of the freehold would be transferred to the new owner. Please advise.
The Lease of the Flat may require any flat owner to become a shareholder in the Management Company in order for the Management Company to carry out its duties under the Lease. In these circumstances your Buyer will require a transfer of your share in the Management Company on completion of the sale of the flat. Also, if the Management Company is a limited company, registered at Companies House, then its Memoranda & Articles of Association may include a requirement that only flat owners can be shareholders.
If after checking the above there is no bar to you remaining a shareholder in the Management Company then you need to consider your reasons for wishing to remain involved and whether this would be in the best interests of the four flat owners.
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