We are currently in the process of selecting Managing Agents having interviewed 3 to date and are now waiting for other suggestions from the shareholders. As far as we are aware we only need a Majority vote, is this correct?
The FPRA replies:
On the basis that the Directors are making the decisions (they are elected to make these decisions) then a simple majority is sufficient. If the shareholders are making the decisions they would need to be provided with the same information on each prospective agent but this is likely to lead to confusion and the decision is better left to the smaller committee who have carried out the interviews.
Based on the length of time of the management agreement, and the cost per leaseholder, formal consultation for a Long Term Agreement may also be required.