Question 1

Lack of Volunteers

Accepted Answer

Q: When we enfranchised seven years ago, 12 of our 30 flats were owner-occupied. The figure is now four, and set to reduce. We face a real problem of finding volunteer directors. We remember reading something about this in the FPRA literature a couple of years ago, and wonder whether any of FPRA's members have tackled the problem, and whether they would be willing to share solutions. Our contingency plans involve recruiting (paid) non-executive directors with specialist experience in areas relating to enfranchised freeholds. We wondered whether FPRA has a directory or similar of people who might be appropriate. A: FPRA Chairman Bob Smytherman replies: The problem of finding good volunteer directors for any RMC is very difficult, especially when many of the shareholders live elsewhere and let out the property. My own block is a good example of this, with five out of the maximum six directors not living in their properties, the only exception being me. The reality of this situation is I am the immediate first port of call for any Leaseholder or tenant. In my block this works well as I receive a small honorarium each month for acting as company secretary and we employ a professional bookkeeper to manage the service charge account on a day to day basis. We are lucky that five of the six directors are signatories, as two live within half a mile of the block and the other is within the county. Without sight of your articles of association it’s difficult to be specific with advice as this has to be the starting point. Most RMCs will have a minimum and a maximum number of directors required to run the company - usually a minimum of two and maximum of six, but this can vary and can be changed by a resolution at an AGM or EGM if this is too prescriptive in your case. Whether paying non-executive directors is an option in your case, again you will need to refer to the articles of association. If payment is involved and allowed I am sure people would come forward. From my experience I have just asked people face-to-face at a AGM and emphasised the importance of the role as well as being honest about the responsibilities they are undertaking. In reality this will be less onerous if you use the services of a good managing agent, which is the best option if you can’t find volunteers to run the company on a daily basis. We don’t have such a directory and don’t recommend individuals or companies but would recommend an extensive recruitment process if you are looking to pay individuals as non-executive directors. If you wanted further company advice, please send us a copy of your articles of association and we can arrange one of our company specialists to review possible options available to you. Question submitted January 2018

Question 2

Lack of Volunteers

Accepted Answer

Q: When we enfranchised seven years ago, 12 of our 30 flats were owner-occupied. The figure is now four, and set to reduce. We face a real problem of finding volunteer directors. We remember reading something about this in the FPRA literature a couple of years ago, and wonder whether any of FPRA's members have tackled the problem, and whether they would be willing to share solutions. Our contingency plans involve recruiting (paid) non-executive directors with specialist experience in areas relating to enfranchised freeholds. We wondered whether FPRA has a directory or similar of people who might be appropriate. A: FPRA Chairman Bob Smytherman replies: The problem of finding good volunteer directors for any RMC is very difficult, especially when many of the shareholders live elsewhere and let out the property. My own block is a good example of this, with five out of the maximum six directors not living in their properties, the only exception being me. The reality of this situation is I am the immediate first port of call for any Leaseholder or tenant. In my block this works well as I receive a small honorarium each month for acting as company secretary and we employ a professional bookkeeper to manage the service charge account on a day to day basis. We are lucky that five of the six directors are signatories, as two live within half a mile of the block and the other is within the county. Without sight of your articles of association it’s difficult to be specific with advice as this has to be the starting point. Most RMCs will have a minimum and a maximum number of directors required to run the company - usually a minimum of two and maximum of six, but this can vary and can be changed by a resolution at an AGM or EGM if this is too prescriptive in your case. Whether paying non-executive directors is an option in your case, again you will need to refer to the articles of association. If payment is involved and allowed I am sure people would come forward. From my experience I have just asked people face-to-face at a AGM and emphasised the importance of the role as well as being honest about the responsibilities they are undertaking. In reality this will be less onerous if you use the services of a good managing agent, which is the best option if you can’t find volunteers to run the company on a daily basis. We don’t have such a directory and don’t recommend individuals or companies but would recommend an extensive recruitment process if you are looking to pay individuals as non-executive directors. If you wanted further company advice, please send us a copy of your articles of association and we can arrange one of our company specialists to review possible options available to you. Question submitted January 2018

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