Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Do I have to pay company costs?

Do I have to pay company costs?

Postby hairbrush » Sun Jan 29, 2017 5:53 pm

The director of 'our' freehold company has denied me and some others the right to be shareholders of the company which manages the block of flats we live in. He has defended his decision by citing the company rules which appear to give him a right to refuse issuing new shares. As non shareholders, do we have any obligation to contribute towards the running costs of the company?
hairbrush
 
Posts: 7
Joined: Sun Jan 29, 2017 5:36 pm

Re: Do I have to pay company costs?

Postby atticus » Sun Jan 29, 2017 6:00 pm

Look at your lease. I expect that provides that you should contribute to the cost of managing the block.
User avatar
atticus
 
Posts: 18336
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Do I have to pay company costs?

Postby hairbrush » Sun Jan 29, 2017 7:51 pm

I'm referring specifically to the costs of running the company rather than the costs of running the block. For example, would I have to pay for D&O insurance which is currently listed on my service charge account but not in the lease?
hairbrush
 
Posts: 7
Joined: Sun Jan 29, 2017 5:36 pm

Re: Do I have to pay company costs?

Postby atticus » Sun Jan 29, 2017 8:03 pm

On the face of it that would seem unlikely. Have you asked on what basis they say you are obliged to pay? Asking that question is often a good starting point.
User avatar
atticus
 
Posts: 18336
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Do I have to pay company costs?

Postby hairbrush » Sun Jan 29, 2017 8:09 pm

We have challenged him but he refers us to the lease which states that the freeholder is indemnified by the lessees against all costs. Is a blanket term enough?
hairbrush
 
Posts: 7
Joined: Sun Jan 29, 2017 5:36 pm

Re: Do I have to pay company costs?

Postby atticus » Sun Jan 29, 2017 8:40 pm

I would wish to see the lease. A well drafted lease will detail the costs that are to be paid.
User avatar
atticus
 
Posts: 18336
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Do I have to pay company costs?

Postby hairbrush » Sun Jan 29, 2017 9:07 pm

The indemnity clause crops up more than once and appears to cover costs relating to routine building costs such as maintenance and buildings insurance. I don't think the clause is an umbrella term for everything the company has to pay for. If the freeholder refuses to separate and remove costs which aren't recoverable, is the whole service charge invoice invalid?
hairbrush
 
Posts: 7
Joined: Sun Jan 29, 2017 5:36 pm

Re: Do I have to pay company costs?

Postby hairbrush » Sun Jan 29, 2017 9:15 pm

Can I send you a copy of the lease? I would have to spent a bit of time blocking out the names first.
hairbrush
 
Posts: 7
Joined: Sun Jan 29, 2017 5:36 pm

Re: Do I have to pay company costs?

Postby atticus » Sun Jan 29, 2017 9:16 pm

Unlikely. I recommend that you ask someone with some knowledge or experience to look at your lease.

(This is in reply to the post two above this.)
User avatar
atticus
 
Posts: 18336
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Do I have to pay company costs?

Postby dls » Mon Jan 30, 2017 7:07 am

It really is impossible to answer without sight of the documents.
I question the likelihood that new shares are necessary.
The basic answer is not to react to pettiness with similar.thecost to you of a dispute will vastly exceed the sums now at issue.
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 11653
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire

Next

Return to Company Law

Who is online

Users browsing this forum: No registered users and 1 guest