An RMC is formed of residents who supervise the upkeep and running of their block. RMC members (sometimes referred to as shareholders), are leaseholders who own properties within the block. They might not all live in the block (some may rent out their flat), but all need to have bought their property to take part in the RMC. The RMC will have a board of directors which RMC members have the option to join.
Who runs the RMC?
An RMC will have a team of “officers” elected from the directors. These include:
A managing agent will work alongside an RMC to make decisions about a block’s management, such as choice of contractors, repair and maintenance schedules, health and safety decision and reviewing annual accounts. The board of directors have specific responsibilities above and beyond an ordinary RMC member.
An RMC is an official company
It will be registered at Companies House, this is a government scheme who register company information and make it available to the public.
Each RMC will have its own rules, which will be contained in the company’s ‘Memorandum and Articles of Association’. This means:
Memorandum of Association – a legal statement signed by all initial shareholders agreeing to form the company
Articles of Association – written rules about running the company agreed by all shareholders, directors and the company secretary (including the number of directors, the company’s borrowing powers and business objectives).
A resident management company (RMC) can also be known as a right to manage company (RTM).