What Is The Role Of The Directors Of The Management Company?
As with any company, a Management Company Director helps control the company and has the power to make decisions. Directors are also burdened with the statutory and fiduciary duties of running that company. In the main, the Directors’ role is to ensure that the development is managed and maintained to an appropriate standard, cost effectively, and in line with the requirements of the documentation under which each property is demised.
Most Directors of Management Companies choose to discharge their duties to a professional managing agent such as Realty. This mitigates liability and ensures that all services are delivered with demonstrable value for money, to high standards, and in complete compliance with title documentation, legislation and best practice. The Director’s obligations are reduced dramatically to high level decision making, as the managing agent performs all of the day-to-day functions, however complete control always remains with the Directors.
Even where a managing agent is involved, Directors should meet regularly to discuss and agree how the development should be run, any planned projects, agree budgets and review the managing agents’ reports. Realty can also act as Company Secretary for the Management Company and perform all associated duties free of charge to further reduce the burden on the Directors.
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