The motivation for those agreeing to become directors of a Residents Management Company, in what is generally a voluntary unpaid role, is varied and personal; wanting to ensure things are done, a wish to be involved, perhaps having appropriate experience and expertise or just responding to peer pressure “someone has to do it”!
Some have said that they like the kudos of the director title too. However, its far more than that and as part of our role as managing agents we always highlight this, to both our existing and new clients.
Comments such as ‘well, I’ll be a Director in name only or it’s not like being a real Director’ are more common than we’d like and it often comes as somewhat of a surprise that the responsibilities of a director of a RMC are precisely the same; a director is a director!
It is essential that directors understand the company and the leases and get directors insurance. Directors acting ultra vires can mean that they can become personally liable.
The roles and responsibilities are becoming increasingly more complex and involved for directors, adding to the increasing trend to ensure that professional managing agents are appointed. Mistakes can be expensive, as can omissions. Ignorance is no defence. The responsibilities are just too great.