RMC Directors: What Are The Responsibilities?

13th Oct 2021

What is an RMC Director?

The duties that RMC Directors have towards leaseholders will be set out in the leases. Contractual duties (such as repairs, maintenance, insurance, and service charge accounting) are combined with statutory duties (including restricting service charges to reasonable amounts and consulting on major works) and are owed to all leaseholders. The full responsibilities of any RMC will be set out in the RMC’s Memorandum and Articles of Association as well as being contained in the leases themselves.

Typically, each flat owner will be a shareholder in the RMC and members will be appointed from these leaseholders to become Directors. RMCs are then run by these Directors.


Who can become a Director?

The Memorandum and Articles of Association with the RMC set out how the Company should operate. It clarifies specific requirements for eligibility such as, only owners of a flat or house on the development can become a Director. Unfortunately, being a tenant and not an owner does not qualify.

The following criteria must also be met to become a Director:

In most circumstances, the Directors of the RMC company are unpaid volunteers (leaseholders).


What does an RMC Director do?


As a director or officer of a limited management company, you can be held liable for mistakes or oversights in the running of your company. Volunteering to become a Director of the company that manages a block of flats has many advantages, but by becoming a Director of the company there may be a possibility of exposing yourself to potential financial risk.

At Blocsphere, we always make sure that the building has Director’ and officers’ liability insurance in place to protect the directors from any financial risk. Running a residential management company or similar organisation means that you have certain duties and responsibilities to the leaseholders. If you fail to carry out these responsibilities adequately, you could be held personally liable.

How does Blocsphere support RMC Directors?

  1. Filing confirmation statements and other company returns
  2. Maintaining the statutory books
  3. Arranging directors’ and shareholders’ meetings
  4. Informing Companies House when company details change
  5. Maintaining the registered office address
  6. Compliance with legal matters
  7. Security of company documents
  8. Communication with shareholders
  9. Signing legal documents
  1. Financial budgeting and management
  2. Service charge administration and collection
  3. Repair and maintenance management
  4. Leaseholder and tenant relations / communications
  5. Lease compliance
  6. Legal strategy and dispute resolution
  7. Staff management
  8. Landlord and tenant advice
  9. Arrange insurance cover
  10. Arrange statutory testing and relevant risk assessments

As managing agent, we are given clear instructions from the Directors on what they would like from us and how they would like us to manage their development and the Directors can choose on how much involvement they would like. At Blocsphere, we work with a variety of RMCs, all with different specific requirements, and would be happy to speak with Directors looking to appoint a managing agent.

Click here to request a quote of our management fees. 

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    info@blocsphere.co.uk (General Enquiries)

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