Flat Management and Similar Companies

G

Flat Management and Similar Companies

C

WHAT ABOUT UNLIMITED COMPANIES?

The accounts of most unlimited companies do not have

to be delivered to the Registrar. But they still have to

be prepared and audited and presented to the members.

Unlimited companies also have to file annual returns and

other notices.

WHAT IF THE DOCUMENTS ARE NOT FILED?

First, the directors could be prosecuted. It is their

responsibility, and failure to file is a criminal offence.

Second, the Registrar could assume that the company is no longer required, and strike it off the register. He would write to the registered office before doing this, but if he didn't get a reply he would go ahead. (This is

one reason for ensuring that your registered office address is always up to date).

If the company has been struck off and dissolved, it

ceases to exist, and so cannot own property. If this

happens, it will prove very difficult to sell any of the flats.

The situation can only be put right by a court order. Before agreeing to the order, the court will want to be satisfied

that the company will be better managed in the future.

WHAT IF I SELL MY FLAT?

If you sell your flat or house you should complete the

vendor's portion of a stock transfer form (available from law stationers) and pass it, together with your share certificate to the purchaser on completion.

6.

The purchaser will then need to complete his section of

the form, arrange for any Inland Revenue stamping,

and pass the completed form, together with the share

certificate, to the secretary in order that the directors

can authorise the change to the register of members

and issue a share certificate in the new name.

The stock transfer form must not be sent to the Registrar of Companies, but should be retained with the company's own records.

WHAT OF THE FUTURE?

The proposed Commonhold Act may eliminate the necessity for your company, if it only holds the head lease. You should, of course, consult your legal

advisers when this happens. The proposed Act may

not apply to Scotland.

WHERE CAN I GET MORE INFORMATION?

More details are given in our notes on Disclosure Requirements (CHN19).

Among the forms you may need are -

287 - change of registered office

288 change of director/secretary or their

particulars

363b/s annual return this form is sent

automatically to the company's registered

office about two weeks before it is due to be

completed

7.

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