Business law

Your rights in the UK to manage the business – what should expect a director to do?

The right to manage is something that homeowners who live within a block must always take into consider. Many tenants have followed through this process and have formed their own RTM (Right to Manage) company, others, however, have put the care of their block in the hands of a company of external maintenance.


If the idea of establishing a right to manage the company has developed, you should take the time to review as appropriate. You must be aware of what will be in your plate if you do not take the position of director. The role of the director is made by a tenant/s.

The success of a business in the UK RTM is quite dependent of all tenants agree and agree on measures to be taken. The director of the company is not all decisions on their own; they must have the support of at least 2/3rds of all tenants involved in the business. One of the most difficult roles of the Director is to put everyone to make a decision while dealing with the clash of opinions and personalities of the tenants.

The company director is responsible for dealing with finances. This means that if a tenant is in default on a payment of maintenance, you as a Director could be liable for it in society. While this may seem unfair, it is a responsibility that rests on the shoulders of the director. This shows why it is essential to reflect on the reality to be director of a right to manage the business.

You probably understand that being a director of a British company RTM can be quite satisfactory, you can make decisions that will save you and the other tenants money. It also helps to take some RTM ownership. However, you must consider that to be a director should be around your daily life and it is a job that should not be taken lightly. You will need to be informed and up to date with UK & safety and health regulations.