Being an RMC Director: Your Responsibilities in Plain English

Many blocks are run by a resident management company whose directors are volunteer leaseholders. It's an important role, and it carries real legal responsibilities.

Two sets of duties

RMC directors are company directors, with duties under the Companies Act 2006: acting within the company's powers, promoting its success and exercising reasonable care, skill and diligence. They are also responsible, through the company, for meeting the management obligations set out in the leases.

What that covers in practice

• Keeping the building in repair and providing the services the lease requires
• Setting and collecting a fair service charge, and accounting for it properly
• Arranging buildings insurance where the lease requires the company to
• Meeting fire safety and health and safety duties in communal areas
• Filing confirmation statements and accounts at Companies House on time
• Holding meetings and keeping proper records

Sharing the load

Directors can delegate the work to a managing agent while keeping oversight of it. Look for an agent that reports clearly and regularly on finance, compliance and works, so the board always has a clear picture. Directors' and officers' insurance is also worth considering.