The Management Company

The Management Company

​Background

 

Barry Waterfront Residents Management Company Ltd is an independent company, limited by guarantee, established to have ownership of the public open spaces, and play areas of the Barry Waterfront. It is different to Remus Management Ltd (Remus), which is the Managing Agent and appointed by the Management Company, and BWCRA, which is a voluntary organisation representing residents.

As well as acting as Managing Agent, Remus was also appointed as the Management Company’s Company Secretary, and it is in this role that we have discovered a problem.

First time purchasers of properties should have automatically been enrolled as Members of the Management Company as part of the buying process, but, on investigation, it would appear that this has not happened. For second and subsequent purchasers, there is also a requirement that new owners become members of the Management Company as part of the buying process. It is unclear whether this condition has been satisfied.

 

What are we doing?

 

Having been alerted by a resident of the problem, we reviewed the documentation that is in the public domain and on the Companies House website where we discovered incorrect information had been filed by Remus acting as Company Secretary of the Management Company.

We have engaged with Remus to share our concerns about the apparent maladministration; seeking an explanation for the error; and Remus’ plan to correct the error.

We have emphasised that under no circumstances are costs to be recovered from residents.

 

What have we achieved?

 

  1. The withdrawal of incorrect information at Companies House, and the subsequent filing of corrected data.The withdrawal o

  2. An explanation of how the oversight had occurred which, unsurprisingly, saw Remus blaming the individual developer’s solicitors for not having provided the information at time of sale.

  3. A commitment from Remus that there will be no charges to residents – either directly, or through the Management Charge – to rectify the error.

  4. A role for BWCRA in contributing to any correspondence and information that might be sent to residents affected.

  5. Correspondence from Remus to those with whom they already have a relationship inviting owners to become members of the company.

 

NewBold Solicitors input

As discussed at the 2022 AGM, BWCRA sought legal advice to share with members about this topic. 

A summary document, prepared by NewBold Solicitors after a meeting with BWCRA on 11th March 2022 is available here

 

The Association is grateful for the support received from NewBold Solicitors in providing the information, and Rt Hon Alun Cairns, MP for facilitating the meeting.

 

We would advise all residents that any further questions they may have on this issue should be raised with their legal advisers at the time of purchase. However, if that is not possible, NewBold Solicitors are able to provide further advice at a fee.

 

Next Steps
 

We will exercise a statutory right under The Companies Act to inspect the Register of Members at the Management Company’s registered office in Salisbury.