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Right to Manage Companies |
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The Commonhold and Leasehold Reform Act 2002 provides the right to flat leaseholders to transfer the management functions of the landlord to a company of their own. This is known as a Right to Manage Company.
RTM companies were introduced under the Commonhold and Leasehold Reform Act 2002.
Right to Manage companies create a new right to enable lease holders of flats to take over the management of their building without the need to prove shortcomings on the part of the landlord and without the need to pay compensation for the exercise of the right. The right is only open to leaseholders of Flats, not Houses.
The company must be limited by guarantee and its memorandum and articles must comply with regulations relating to those documents. Please note, RTM companies do not exist in Scotland or Northern Ireland.
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