RTM company post-formation services: as well as offering a number of options for profit-raising companies, Coddan have expertise in the incorporation of a number of specialist companies. One of the most specifically targeted of these is the right to manage, or RTM company.
Setting up an RTM company of this sort gives leaseholders in a property the power to control a range of aspects of the maintenance, service provision and finances of their property. A RTM arrangement can be made for flats, although not for houses, and effectively transfers management functions of the block in question from the landlord to the RTM company.
Coddan has years of experience of offering post-formation services for RTM companies limited by guarantee. A key advantage of limiting a company by guarantee is that, unlike companies limited by shares or unlimited companies, the personal liability to which members are exposed is usually very small.
In fact, the guarantee - which is the maximum liability which members are liable for in the event of the company defaulting on its debts - is typically set at £1.
Despite the financial security that comes with a company limited by guarantee, post-formation services are of huge use to members of this new company who, as leaseholders of the block in question, will need to assume a range of management responsibilities for their property and all have equal voting rights in doing so.
One of the key attractions of setting up RTM companies is that the management, level of services and cost efficiency of a block of flats can be substantially improved. However, tenants do need to ensure that their new company runs smoothly and Coddan's post-formation services make this as simple a process as possible. Post-formation services might be a change of details relating to the company and its members, registration for additional legal services and so forth.