The role of a Director is to make sure the building is managed properly and in line with the leases. Horizon will do the day-to-day work, but the Directors remain legally responsible for decisions. The key duties are:
You must ensure the building is run as the leases set out. Only services and costs permitted by the leases can be charged to the service charge.
Decisions should be fair and based on what is best for the building as a whole. Declare any personal interest in an issue and do not vote on matters where there is a conflict.
Service charge money must be held in a separate trust bank account (which Horizon maintain). Spending must be legitimate and in line with the lease. Annual accounts must be produced and shared with leaseholders.
Directors must decide how arrears are handled. Horizon will chase arrears, but the board must approve legal action if needed. The approach should be consistent and fair.
The RTM or RMC company must ensure legally required checks are completed (duty to be provided by Horizon). These include fire risk assessments, emergency lighting, communal electrics, lifts and any other statutory tests. Important actions in these reports must be addressed.
Where the lease requires it, the RTM or RMC company must ensure the building is properly insured each year. Directors’ and Officers’ cover should remain in place to protect the board personally (which we would strongly recommend).
For major works or long-term contracts, you must follow the section 20 consultation rules. Horizon will prepare and manage the process, but Directors approve the approach and the final decision.
The RTM or RMC company must file an annual confirmation statement and simple accounts at Companies House. Membership records must be kept up to date. Horizon will prepare filings and file them, but the legal duty sits with the Directors – Horizon will report when this is completed in any given year.
Directors should meet when required. Written minutes should record decisions, approvals and instructions. This protects the company and the Directors should queries arise.
Horizon runs the operational work. Directors supervise the agent, approve budgets, review major spending and deal with higher-level decisions. You do not need to carry out daily tasks yourself.
Basic data protection rules apply. Personal data must be used only when necessary and kept securely. Horizon will manage this day to day, but Directors remain responsible at a high level. Directors are entitled to see any and all information pertaining to the RTM / RMC or it’s members – but must act with care not to circulate information which may lead to a breach of GDPR.
Directors ensure clear communication with leaseholders where necessary. Should Horizon receive any complaints Directors will be made aware with any issues being handled fairly and using a consistent approach.
This list covers the most pertinent items a Director needs to know.
Horizon will guide you through each requirement so you can meet your duties without difficulty – and if any items outside of this arise which pertains to a technical / legal nuance then Horizon will educate the Directors accordingly so they can make informed decisions on what may be being asked of them.
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