Developer holding onto one apartment

H

Hasslehoff

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Anyone know if there is a process for removing a Director from an apartment management company. The problem is that the builder is holding onto three of forty apartments which are two years built.
He is renting these three units and is refusing to pay any of the management company fees or levies , the managing agent do not want to know as they told us that as a Director of the apartment management company he is not going to allow the managing agent to go after him/her for the late fees.

Can anyone suggest what we as a residents committee can do?
 
Assuming that the properties are leasehold, establish what provisions the lease contains regarding the none payment of service charges, ground rent etc. The freeholder (the managing owners) may have the right to forfeit the lease of the properties owned by the builder. The banks that hold mortgages on the properties will be concerned that the investment value might be adversely affected by non-compliance with lease provisions, a smart lawyer could use this as considerable leverage to get your builder to stump up.
 
Report him to the revenue maybe,is he paying all his due liabilities/taxes etc ?
 
Are there not other directors on the board of the management company, i.e. owners?

Even if there are, I would presume that the developer still has de facto control of the company, which would make life difficult for the agent, but I think that legal advice could establish what powers/rights the owners have in this situation.
 
It's not harsh if he is not paying taxes, but I don't see any basis whatsoever from the OPs post to assume that is the case.

Besides, reporting someone to the Revenue doesn't mean that they will start playing ball on other issues.
 
One thing I'm not sure of is when the developers have "de facto" control of management companies is how this is achieved? Do they maintain a special class of weighted voting share or do they not transfer any shares to the owners until they sell the last unit?

If the owners are already shareholders but unable to exert control due to the way things are structured I wonder could they [broken link removed] (Office of Director of Corporate Enforcement) that the directors are not acting in the best interest of the company as a whole.

If the fees are legally due and they are unpaid then they should be accrued in the accounts of the management company, if this is not done then the directors could be failing in their duty to maintain proper books of account.
 
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