Many apartment blocks in the UK are run by a residential management company (RMC). The RMC is a non-profit organisation of elected members (directors) selected from within the residents/owners of the leasehold blocks of apartments.
The RMC is responsible for managing common areas such as hallways, lobbies, and staircases. RMCs are governed by the Companies Act 2006 and need to follow the rules stipulated by the Memorandum and Articles of Association.
Because RMCs are private and non-profit organisations, they’re not legally required to have a company secretary. But many RMCs choose to hire one to help in the daily running of the company.
Company secretarial work is extensive, and secretaries assist RMC directors in maintaining the company book, arranging meetings, and filing annual returns on Companies House.
So, what role does a company secretary play in the day-to-day operations of managing an apartment block? We’ve answered this question and discussed whether we think it’s a good investment to hire a company secretary in this article.
Maintaining the Company Book
One of the key duties of company secretary under Companies Act is to manage the company’s statutory books. This typically includes maintaining a register of all the past and present RMC directors and a register of all past and present shareholders.
Shareholders in a RMC are all the present flat owners, if anyone sells their flat, the “share” is automatically passed on to the new owner. Updating all this information is part of company secretarial work.
The secretary is also responsible for recording the meeting minutes, both from general meetings with all the shareholders and board meetings featuring only RMC directors.
If there have been any expenditures made in the last financial year, the secretary should maintain a thorough record of all outgoings.
Filing Annual Returns at Companies House
As part of company secretarial work, a secretary is required to file all the necessary documentation on Companies House.
Some of the important records that need to be submitted include annual account statements (the yearly earnings and expenditure in maintaining a block of apartments) and confirmation statements.
Along with filing annual returns, it’s essential that company secretaries notify authorities of any change in the company’s registered offices or in the board of directors or company secretary roles.
Arranging Meetings
If you’ve ever wondered, ‘What are company secretarial services?’, the first thing to know is that company secretaries are responsible for arranging meetings.
Company secretarial work involves issuing a proper notice for the meetings so that every participant is aware of the details. They help in preparing the agenda by consulting with the RMC directors, keeping any necessary paperwork required for the meeting to hand, and recording and publishing the minutes of the meeting.
Deciding on the Company’s Policy
As part of the RMC, the duties of company secretary under Companies Act are to ensure that the board of directors complies with all the legal and ethical requirements of managing an apartment block.
The secretary can help in forming policies, such as deciding on the election process for a director, the tenure and duties of a director, and the best way to handle disputes among flat owners. They can also help formulate policies regarding the selection process of different vendors and subcontractors and advise on the best way to maintain the communal areas of the property.
Additional Duties
So, apart from maintaining records, what role does a company secretary play? A company secretary will also undertake additional administrative duties such as:
- Managing the director’s office
- VAT registration
- Maintaining the staff payroll
- Managing the RMC’s facilities
- Staying compliant with data protection laws
- Ensuring health and safety requirements are met
- Making sure that all the communications of the RMC directors are done in a proper manner
- Maintaining and overseeing all the details on the RMC’s stationary, website, and social media
- Maintaining the PSC (People with Significant Control), which is a register of all of the individuals or entities that have significant control over the management of the property
Contact Habitare for Complete Property Maintenance and Secretarial Services
As an RMC director, leaseholder, or property owner, you might be wondering whether you should be hiring a company secretary or work with a block property management company.
At Habitare, as part of our block property management services, we also perform company secretarial work. This involves handling all the administrative tasks necessary for the smooth running of the apartment blocks and ensuring accurate record-keeping. For those who are looking to further reduce their property management tasks, we also offer regular property inspections and address any issues that might crop up during the checks.
If you need additional support with managing your business’ finances, we have an in-house accounts team that will help you maintain transparent and accurate financial records.
Get in touch with us today to understand more about our services and how we can help with both property management and company secretarial duties.