What happens if a RTM Company is struck off the register?

There are three circumstances where the right to manage comes to an end:

  • by agreement between the freeholder and RTM;
  • through the appointment of a manager or an order by the First Tier Tribunal that the right ceases to be exercisable by the RTM company; or
  • through collapse of the RTM company – (i.e. the company is wound up, is taken into receivership, goes into voluntary insolvency or is struck off)

However, the third point must be monitored closely.

 

It is clear that once a company has been struck off the Company Register the right to manage is no longer exercisable. If this happens, the management functions previously carried out by the RTM Company revert to the Landlord. However,  when a company is restored to the register, either by order of court or by the administrative restoration process, the company is deemed never to have been struck off in the first place and the RTM rights are automatically reinstated. This was confirmed in the decision of the First Tier Tribunal in AB&R RTM Co Ltd v Rovergrange Ltd (unreported).

 

A recent consultation  proposed that the principle in AB&R RTM Co Ltd v Rovergrange Ltd (12th April 2017) to restore the company to the register should have to be made within 30 days of the strike off taking effect. However, we are not aware of that law being implemented yet.

 

If you would like to discuss any stage of the RTM procedure please contact the Beth Rose: brose@meaby.co.uk or call 0207 703 5034.