Glossary

A tenants’ association is a group of tenants (normally leaseholders) who hold houses or flats on leases/tenancies from the same landlord on similar terms. A Recognised Tenants’ Association is one where the members have come together to represent their common interests so that the association can act on the tenants’ behalf, and which has been recognised for the purposes of section 29 of the Landlord and Tenant Act 1985. An association is recognised either by notice in writing from the landlord to the secretary of the association, or by application to a First-tier Tribunal (Property Chamber).

A sum of money collected from leaseholders as part of their service charge contribution to meet expenditure on the building in future accounting years. This will often be set up to cover the future cost of major repairs, eg a new roof.

Where leaseholders have a share or membership in the management company. A Residents' Management Company (RMC) protects the interests of the leaseholders. RMC’s typically manage common parts of the building although they may have other responsibilities.  The RMC’s are run by directors, who are usually unpaid and appointed from the residents themselves.

A resolution is a legally binding decision made by company directors or shareholders. If a required majority vote in favor of the resolution put forward, then it is regarded as having been “passed”. Shareholders can pass ordinary resolutions or special resolutions at general meetings or they can pass written resolutions.

Resolutions can be passed by the directors and the shareholders at the relevant meeting.

This is the right for the leaseholders of a building containing flats to take over management of the building from the freeholder, via an RTM company.