Companies House launches new learning tool for flat management company directors


Directors of a right to manage (“RTM”) company often lack company law knowledge. This issue can be overcome by instructing a professional advisor, but these leaves you wholly reliant on their advice. Furthermore, without a basic understanding, you may not be able to gauge who really is a professional advisor.

This is a well-known issue and one which the Law Commission has tried to tackle in their latest proposed changes to the RTM process. They recommend making training for leaseholders acting as company directors available free of charge and to strongly encourage at least one director to complete the training.

Online Learning

Companies House has unveiled its latest attempt to address this issue via a new online learning tool. The interactive tool explains the basics of company law and the responsibilities a director has to Companies House.

Alongside the new tool, Companies House have published a blog from the perspective of a resident director of a RTM company.

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.”

Bob Smytherman, chair of the Federation of Private Residents’ Associations, 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.”

More informationPinney Talfourd are experts in RTM claims and Company Law. We keep up to date on changes to the law so we can ensure you are given up to date advice. Please do not hesitate to contact either Edward Garston by email or on 01277 246833 or Oliver-James Topping by email or on 01708 463227 should you wish to discuss anything further.   

This article was written by Oliver-James Topping, Solicitor in the Residential Property Litigation at Pinney Talfourd LLP Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as of November 2020.


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