PMS Leasehold Management Ltd

If you are a Director of your Residents Management Company (RMC), or are thinking of becoming one, you may be curious as to what your role entails.

It is important to clarify, for the purpose of this exercise, that a 'residents management company (or RMC)' and a 'managing agent' are two very different entities. An RMC is the company set up to administer funding and govern key issues and policy affecting your development; a 'managing agent' is a company like PMS who are appointed by the RMC to run the development on a day-to-day basis.

Each RMC has its own set of constitutional rules laid out in the Memorandum and Articles of Association for the Company. This sounds a little complicated, but in essence this is a legal framework which sets out how your business is to be conducted.

The following list is not exhaustive, but contains most of the requirements and duties of a Director of an RMC. You must be willing to:

Liaise with other Directors and PMS Leasehold Management Limited in connection with the day to day running of your site.
Exercise independent judgment (ie not take instructions from a third party or a dominant director on how to run the management company).
Promote the long-term success of the management company.
Attend meetings when required (usually two to three per year).
Liaise regularly with fellow directors and your Managing Agent regarding future budgets concerning maintenance to all communal (shared) areas – this may include roofs, windows, gardens and car parks.
Act within the company’s constitution and powers (ie the Memorandum and Articles of Association where applicable).
Exercise reason, skill, care and diligence.
Comply with health & safety law.