Who should be present at meeting - Residents C'tee

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Mers1

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Am I mistaken in thinking that only Directors of a Management Company should be present when discussing financial matters of the development? And that memebers (not Directors) can be present to discuss day to day matters eg maintenance etc?
 
Mers1 said:
Am I mistaken in thinking that only Directors of a Management Company should be present when discussing financial matters of the development? And that memebers (not Directors) can be present to discuss day to day matters eg maintenance etc?
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I can't see why non-Directors who are interested shouldn't give input on financial details - it's the members' money that will be discussed, after all, and they own the company. That's the way it works with my management company anyway.

Under company law I don't see how you can hide financial details from the members, if they express an interest.
 
thanks Eblanoid,

We are not trying to "hide" any financial details from members, but surely there are duties that are solely dealth with by Directors only.
 
Mers1 said:
thanks Eblanoid,

We are not trying to "hide" any financial details from members, but surely there are duties that are solely dealth with by Directors only.
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The directors implement the wishes of the members, broadly speaking, while keeping within the law.

So the members will agree in an annual budget meeting on how the following year's income should be spent. The directors will then spend accordingly. The directors get to sign the cheques and legal or company documents. If a large expense arises that was not in the budget, then the directors should probably inform the members.

The member's don't need to be involved in the minutiae of paying company X or Y for servicing the development, they just need to be aware that X amount of annual budget will be spent on such servicing.

If a management agency is involved then the directors will have even less to do, effectively being there to sign off on what the management agency does, having agreed previously on how the management agency should service the development with the members (at budget meeting).
 
It is my opinion that while members at an A.G.M. can indicate their wishes as to any particular expenditure or action by the Company the final decision is the Directors. The reason for this is that under Company Law the Directors first loyalty is to the actual Company not the members i.e shareholders.

For example An A.G.M. could demand that management fees be reduced by 80%. The Directors could not agree to this if to do so would damage the Company and the property for which they are responsible for under law.
 
Thank you Yorrick, these were my sentiments exactly, I am only short of taking excerpts out of our Memo and Arts at this point but I fear even these might go over some heads.

Many thanks
 
Yes indeed Mers1. Of course it is A.G.M. time of the year.
The more I see of Committees and A.G.M.s the more I like Mussolinni
 
My experience as Co Secretary of our management company concurs with Yorrick's opinion. Although Members have a right to see audited accounts etc they do not have a legal right to access and view accounts in detail (ie: individual invoices etc.)

We have a successful and well run company but from time to time we have had to deal with one or two members who are piqued at decisions we have made and in retaliation have tried to waste our time and resources by demanding to see various records/paperwork. Whilst we have no objection in principle and will facilitate genuine requests where we can, this has been a useful rebuff to troublemakers and timewasters.
 
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