Requirements for a limited company

[rescuer]

Does anybody know how many directors and secretary required for a small limted company to cover eight flat owners who have just bought the freehold from the builder.

[Buenchico]

Quote:
"The Companies Act 2006 requires a private company to have at least one director. A company’s articles of association may impose a higher minimum requirement for the number of directors. At least one director must be an individual. A private company does not need to have a secretary if a company’s articles of association provide for it to have a secretary but it must have a secretary if this requirement is included in the articles of association."

Source:
http://www.companiesh...bout/gbhtml/gp1.shtml

Chris

[buildersmate]

The shorter answer is one director, plus a company secretary if the Articles of Association demands it.

[rescuer]

Thanks, buenchico and buildersmate for you replies.
Would it be safe not to form a limited company and run it just as a group responsible for arranging insurance for the whole building, and such items as window cleaning and staircase and landings cleaning?

[Buenchico]

The only real advantage of forming a limited company (in your situation) is that it protects individual members of the group from being sued for any debts incurred by the group. If you're not expecting to have any major items of expenditure it would be simpler to set up an association (with a clearly defined constitution) to handle any day-to-day matters that may arise.

Irrespective of whether you set up a limited company or not, you'll need to consider what will happen if someone sells their flat to a new owner who simply says "I'm having absolutely nothing to do with your organisation".

Chris

[rescuer]

Very interesting and helpful answer, buenchico.
It would seem the ltd co will be best as a safeguard.
Experience in life shows that although agreeing at the beginning, some people change their minds later.

[bednobs]

i would go for a ltd co. You may want to start a sinking fund