Commonhold is the way forward – but we need the same democratic checks and balances for Right to Manage companies

A short letter from me (Mike O’Driscoll) which was published in the i Paper today, highlighting the lack of democratic checks and balances in the Right to Manage legislation which can so easily be exploited by cynical controlling people. The White paper (outline legislation) on commonhold promises a much better model, with leaseholders having the right to elect directors of commonhold companies, compulsory AGMs and the right vote on an annual budget. However, we need those changes applied to Right to Manage companies too, which are by far the most accessible and popular form of leaseholders gaining their ‘freedom’ from freeholders. RTM often works well, but it is not uncommon that RTM companies are undemocratic and controlled by a small number of unelected and unsuitable people who may ignore leaseholders’ wishes, misinform residents on key matters and refuse to hold directors to account even when their behaviour has (allegedly) included assaults. In some cases such RTM companies may form unhealthy relationships with agents or the freeholder which are not in leaseholders’ interests. They may also refuse to let leaseholders see the contract with the managing agent.

The text of my letter:

Click to access mike-odriscoll-letter.pdf

Commonhold is the Way Forward

Further to Sebastian O’Kelly’s column
regarding Chelsea Bridge Wharf (The i
Paper, 19 February), I am a long-time leaseholder
there and I welcome the achievement of
Right to Manage (RTM) in principle as it will
allow us, rather than the freeholder, to choose the
managing agent.

However, RTM legislation does not
currently require directors of RTM
companies to be elected, nor even for an
AGM to be held. These deficiencies have the
potential to be exploited.

Commonhold will hopefully become the
default flat ownership model within a
few years, and the governance checks and
balances proposed are much stronger.

These improved democratic inputs
should also be incorporated into
RTM legislation.

MIKE O’DRISCOLL
LONDON

Category : Banana Republic, CBWRA, commonhold, culture of fear, Electoral misconduct, governance, LKP, Right to Manage, RTM, Transparency, Uncategorized, Urang