Creeping Nationalisation of the Housing Stock.

Anyone realise what a Council Block Vote can do to a management company ??

askaboutmoney.com/showthread.php?&t=81882

Yet another way to get out of a contract I think !!!

Doesn’t play into what I believe the situation with many management companies is.

AFIK, and I’m sure there are others with first hand experience on here, but with many management companies they form a new company/entity to manage each development. The shares of this new company are spilt between the tenants/land lords of the development and the management company, with the management company retaining the majority of voting shares. So no block voting can effect the outcome.

So, in reality, the individual owners have little power anyway.

Blue Horseshoe

The management company of each estate is co-owned by each “owner” of a property in that estate. For an apartment block, it’ll be each long term lease holder.

The issue arises in that one entity may own several properties in a given development, viz the developer or, in this case, the local council. This gives them a disproportionate number of voting rights. The management company doesn’t own voting shares per se because the shares in that company are split between the owners of the units. If one owner owns several units, that owner has several votes.

Strictly speaking its a proportionate right but exercised as a block vote.

Given the typical no shows at management company meetings its quite possible for a council to get complete control with only 35-40% of the units because they will show up and vote.

Then they can load up the management charges as much as they like , it used to be called rates 8)

This is not an issue. The council or rather the staff in the housing departments want to be out of any developments as soon as possible. Once the builder has handed the development over the housing department will try to move it on as soon as possible becuase it means they have less work to do; they’re a lazy bunch and as such do not want to be dealing with management agents and handling all the paperwork associated with a management company.
Developers on the other hand would/could have a motive for taking control of a management company.