Management Company

What is a Management Company?

In the context of The Dovecote, a Management Company (MC) is a non-profit-making company, set up to take responsibility for the the Public Open Space (POS), administration of the service charge and the delivery of management and maintenance services on site. Note that in all references to the POS, this includes all play areas on the development.

The MC for The Dovecote was established by Bloor Homes Ltd and incorporated on 8th Dec 2017 at Companies House as Dovecote (Drayton) Management Company Limited, 11103835.

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Background

Construction of The Dovecote started in 2018 and incorporates a large area of POS. We are currently in the final stages of handover and hope that the POS will be handed over to the MC at some point in 2024.

The local council that is overseeing the handover (and will ultimately sign off the development) is Vale of White Horse District Council (VWHDC). The Dovecote Residents’ Association (TDRA) is working closely with VWHDC to ensure that the development is completed in line with the original planning application.

Original Homeowners

When homeowners first completed on their properties, they paid a small service charge (up to a max of about £250). The intention of this service charge was to form a “starting cash balance”, which the MC could immediately use in support of maintaining the POS after handover. Bloor Homes has transferred this money over to an Estate Manager. That was originally Chamonix Estates and this money now sits with FirstPort Ltd, as a result of its take over of Chamonix in 2021.

Unfortunately, due to the way in which Bloor Homes has organised the management of the MC, the Estate Manager has attempted to take this money in “expenses” each year. Luckily, the RA has been able to establish a precedent that any attempted charging of residents can be recovered from Bloor Homes on the basis that the Estate Manager has no legal right to charge any expenses to residents prior to full handover.

At the point of completion, home owners also agreed to be considered for election to the MC Board of Directors at the point of handover. This was via a form which residents signed called the TP1. Any homeowner successfully elected to the MC Board of Directors would become a Resident Director.

What will the MC be Responsible for?

The only reason the MC exists is to take responsibility for the POS. All expenses incurred by the MC and income generated is to ensure the POS is maintained in line with the Management Plan (MP).

The MP explains how the POS should be managed in the first 5 years. It sets out the requirements of the MC in maintaining the POS. The MP was set out by the VWHDC at the point Bloor’s planning application was approved (back in 2016).

The MC Board of Directors

In line with the Section 106 agreement and the Articles of Association, the MC Board of Directors need to comprise:

• A nominee of Drayton Parish Council.
• A number of Resident Directors (typically 4 or 5).

Note: there must be at least two directors to have a functioning Board of Directors.

Why Become a Resident Director?

Being a Resident Director of the MC means taking on responsibility for ensuring the MC maintains the POS in line with the MP. You will also have more control over the management of the POS and be a key decision maker along with the other directors.

Being a director is voluntary. Directors are normally nominated by the members of the MC at an Annual General Meeting (AGM) or an Extraordinary General Meeting (EGM).

Duties of a Resident Director

Resident Directors have legal obligations under the Companies Act 2006 including:

• To act within the powers of the company – a director must act in accordance with the company’s constitution (i.e. the articles of association) and exercise his or her powers for the good of the company.
• To promote the success of the company – a director must act in good faith in the way he considers and promotes the success of the company for the benefit of its members as a whole.
• To exercise independent judgment and not be swayed by a dominant director.
• To avoid conflicts of interest – a director must avoid situations in which he or she has a direct or indirect interest that conflicts with or may conflict with the company’s interests. For example, a director would not be allowed to appoint a contractor or company that they have a financial interest in.
• Not to accept benefits from third parties – a director must not accept any benefit (including a bribe) from a third party which is given because he or she is a director or he does or omits to anything as a director.
• To exercise reasonable care, skill and diligence.

What’s Involved in being a Resident Director?

Being a Resident Director shouldn’t take that much time and effort, although this will depend upon the approach to running the MC that is selected. As a minimum:

• Resident Directors are expected to attend up to four directors’ meetings per year and the AGM.
• Between meetings Resident Directors are expected to be available via email to make decisions about day-to-day issues as and when they arise. For example, the approval of quotations for works on site.
• The most important role of the directors is to agree an approach to running the MC. This might include appointing and overseeing the work of an Estate Manager. More details will be provided about the options that will be available to residents when handover is complete.