A good starting point for all newly appointed Directors is with the Memorandum and Articles Association (MAA) of the Resident Management Company. This is a legal statement signed by all initial shareholders, which contains written rules about running the company and is agreed by the shareholders or guarantors, directors, and the company secretary. It sets out how the company should act and how decisions should be made. The MAA lays out the main powers and responsibilities of a Director.

As Directors are key decision makers, they are given delegated authority to act on behalf of the members/ shareholders. RMC Directors usually take responsibility for ensuring the annual budget is managed well and ensuring that the requirements of the lease are met. It is therefore of utmost importance that Directors familiarise themselves with the lease.


Essentially, a Director is responsible for the day-to-day management of a building. Some of the responsibilities placed on Directors are legal obligations included in a lease with each leaseholder. These obligations include:

Maintaining the roof
Maintaining the exterior of the property
Ensuring the management company performs necessary repairs


The leases also contain various obligations on the leaseholders, such as payment of service charges and maintaining the interior of their own property. If a leaseholder does not comply with the lease, Directors are responsible for policing and enforcing these obligations.

They must also ensure that the management company complies with Landlord and Tenant law. For example, when works are to be carried out on a building, a Director must consult with leaseholders before the undertaking of any repair or maintenance work costing more than £250 per leaseholder. If not in agreement, leaseholders cannot be forced to pay more than the £250 towards any works, regardless of cost, and therefore, this is a vital aspect to get right as a Director.

In the instance that the board is not comfortable with this aspect of its role, or lacks the necessary expertise, a professional managing agent can be appointed to carry out these functions on behalf of the board.

If you would like to find out more information on the role and responsibilities that fall upon Resident Management Company Directors, please visit The Property Institute (TPI) website.