The Act was passed in November 2006 but brought in in stages up to October 2009. This GN refers only to parts of the Act about private companies limited by share or guarantee relevant to Resident Management Companies (RMCs).
From October 2009 there are revised model articles for newly forming private companies limited by shares and guarantees which incorporate the changes set out below. These replace the existing ‘Tables’.
Memorandums are much reduced and are in a new style.
There are also new model articles for Right to Manage Companies.
The Act allows existing private companies such as RMCs to adopt the changes in the 2006 Act if they wish, but most of the changes require existing RMCs to vote for alterations to their current Articles of Association before they can be adopted.
There are possibilities for managing agents to streamline their company services to RMCs.
If an RMC you are acting for wishes to adopt any of the changes in the Act, you should caution them to take specialist legal advice first.
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