Question 1

Appointing a Company Secretary

Accepted Answer

We need to appoint our first Company Secretary to the management committee (a small block of 9 flats) would value your suggestions as to the key qualities and qualifications we should be looking for - both legal and financial. Are there any obvious pitfalls we should avoid? The FPRA replies: As the Chair of a Freehold Company managing a block of flats since 1996, as well as a lecturer on Block Management, I do hope you won't be at all offended if I reply that the biggest mistake is appointing a Company Secretary at all. After the 2006 Act there was no need for a Company Secretary any more. Now if your memoranda and articles of Association mention a Company Secretary then you will need to amend the articles and send the new articles to Companies House. Instructions are on the Companies House web site or come back to us. If no Secretary is mentioned then suggest you do not appoint one. As you rightly suggest it's a big responsibility and needs special qualities and knowledge, but for small RMCs your returns can be dormant and filed by an accountant or yourselves. Your bank account should be with an agent or in a separate trust fund. So in this type of company we don't need a Secretary to file accounts. Also a lessee secretary may sell their flat, or worse forget to file the accounts - the worst thing that can happen.

Question 2

Appointing a Company Secretary

Accepted Answer

We need to appoint our first Company Secretary to the management committee (a small block of 9 flats) would value your suggestions as to the key qualities and qualifications we should be looking for - both legal and financial. Are there any obvious pitfalls we should avoid? The FPRA replies: As the Chair of a Freehold Company managing a block of flats since 1996, as well as a lecturer on Block Management, I do hope you won't be at all offended if I reply that the biggest mistake is appointing a Company Secretary at all. After the 2006 Act there was no need for a Company Secretary any more. Now if your memoranda and articles of Association mention a Company Secretary then you will need to amend the articles and send the new articles to Companies House. Instructions are on the Companies House web site or come back to us. If no Secretary is mentioned then suggest you do not appoint one. As you rightly suggest it's a big responsibility and needs special qualities and knowledge, but for small RMCs your returns can be dormant and filed by an accountant or yourselves. Your bank account should be with an agent or in a separate trust fund. So in this type of company we don't need a Secretary to file accounts. Also a lessee secretary may sell their flat, or worse forget to file the accounts - the worst thing that can happen.

Appointing a Company Secretary

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