Companies House launches awareness campaign aimed at flat management company directors

Every year, Companies House receives complaints from residents living in shared buildings or properties such as flats. These can range from disputes between residents to the poor condition of carpets or paintwork in shared areas such as stairways.

Unfortunately, we have no powers to deal with these complaints.

Flat management companies are commonly set up by residents to manage communal areas of a shared property and the overall condition of the building. The residents of the property are usually the directors and shareholders of the company.

Each company is required by law to file accounts with Companies House every year. This can lead to confusion among some directors and shareholders over who’s responsible.

If you’re a flat management company director or thinking about setting one up, you need to know about your responsibilities to Companies House.

Companies House Director of Operations John-Mark Frost said:

All company directors must be aware of their legal responsibilities both to Companies House and to their shareholders or members. This includes keeping information up to date and filing the necessary documents in a timely fashion.

Although the tool does not replace independent legal or professional advice, we hope it will be of immense help for people who are looking for help or guidance.

Bob Smytherman, chair of the FPRA, said:

We very much welcome the introduction of this new online tool from Companies House.

We represent residential management and right-to-manage company members right across England and Wales and we know all too well some of the difficulties that they can experience.

Becoming a director of a company is a significant step and the position comes with a number of responsibilities. This additional support to help directors understand these responsibilities will, I’m sure, prove to be incredibly valuable.

See our Flat management and right to manage (RTM) companies guidance.

Blog post: My responsibilities as a director of a flat management company.

Property management law is different in Scotland. Read the Scottish government’s guidance on property factors.