Block Management for RMC Directors
Being an RMC director means running a company, holding leaseholders' money, and carrying statutory duties for a building — usually unpaid, usually alongside a full-time job. Most of the work can be delegated to an agent. The accountability cannot.
Talk to us as directors
Tell us the block, the unit count and what is currently going wrong. We'll set out what we would take off you and what it costs.
What you are actually responsible for
| Duty | Source | Consequence of getting it wrong |
|---|---|---|
| Directors' duties: care, skill, good faith, avoiding conflicts | Companies Act 2006 | Personal liability; disqualification in serious cases |
| Filing accounts and confirmation statements | Companies Act 2006 | Penalties; strike-off risk for the company that owns the management function |
| Holding service charge money on statutory trust | Landlord and Tenant Act 1987 s.42 | Personal exposure where funds are mixed or misapplied |
| Consulting on qualifying works | Landlord and Tenant Act 1985 s.20 | Recovery capped at £250 per leaseholder |
| Service charge demands with prescribed information | LTA 1985 / Commonhold and Leasehold Reform Act 2002 | Charges not payable until served correctly |
| Fire safety of common parts | Fire Safety Order 2005 / Building Safety Act 2022 | Criminal liability for the responsible person |
| Repair and maintenance per the lease | The lease | Breach of covenant claims from leaseholders |
What a managing agent takes off you
- All leaseholder correspondence and the out-of-hours calls
- Budget preparation, demands, collection, arrears escalation and client accounting
- Compliance programme with dated actions and evidence retained
- Contractor procurement, tendering, supervision and invoice checking
- Section 20 consultation drafted and served correctly
- Insurance placement, renewal and claims
- Company secretarial: AGM, minutes, filings, register maintenance
What stays with you whatever you do
Directors' statutory duties, the decision-making, and the accountability to members. An agent advises and executes; the board decides. Two practical consequences follow.
- Read the management pack before every board meeting — arrears, compliance actions, budget variance. If your agent does not produce one, that is the problem.
- Hold directors' and officers' liability insurance. It is inexpensive, and it is the difference between a claim against the company and a claim against your house.
- Minute decisions properly, especially anything involving cost, conflict of interest, or a departure from advice.
- Never mix service charge funds with company funds; they are held on statutory trust.
The three failures we are called in to fix
Late accounts. Where year-end accounts run months or years behind the lease deadline, arrears recovery weakens, leaseholder trust collapses, and flat sales start falling through on enquiries.
Uncompleted fire risk assessment actions. The report exists; the actions have been open for two years. This is the single largest liability sitting quietly in most self-managed blocks.
Major works done without proper section 20 consultation, leaving the company unable to recover more than £250 per leaseholder and the directors explaining a shortfall at the AGM.
Frequently asked questions
Are RMC directors personally liable?
The company is a separate legal person, but directors owe statutory duties under the Companies Act 2006 and can be personally liable for breach of those duties, for misuse of service charge funds held on trust, and for fire safety failures where they are the responsible person. Directors' and officers' insurance is strongly advisable.
Can an RMC manage the block itself without an agent?
Yes, and plenty do successfully — usually smaller blocks with a director who has time and relevant experience. The common failure points are service charge accounting, section 20 consultation and compliance tracking. We support self-managed blocks on those three alone where full management is not wanted.
How do RMC directors change managing agent?
Check the notice period in the management agreement, pass a board resolution, serve written notice, and appoint the incoming agent to run the handover of funds, records, contracts, insurance and compliance documentation.
Do RMC directors get paid?
Usually not — most articles do not provide for remuneration, and directors are typically leaseholders volunteering. Reasonable out-of-pocket expenses are normally recoverable where the articles allow.