Residents and Management Companies

Those who own flats in large residential blocks will be aware that ownership of those properties often comes with a shareholding in the management company that looks after the fats.

A noticeable number of shareholders who seek information or assistance from this website are looking for assistance in the context of owning shares in a residential management company. Many of those cases involve some very personal and emotional issues – involving, as they do, neighbours living together 24/7.

An illustration of how these cases can get out of hand is the 2018 case of Odutola-v- Hart and Others [2018]. A resident in an apartment block had been ousted from the residents’ management company. She didn’t take it well. After bringing an unsuccessful law suit for harassment against fellow residents, she then launched an unfair prejudice case as a shareholder in the management company. However, despite a 67 page petition to the court, she was unable to come up with any allegations that survived an early application to throw the case out.

The judge felt that the issues were much more about personal or subjective differences than company law matters. Consequently the case was dismissed even before a trial, with the petitioner being ordered to pay the costs of the claim.

For more information please contact Paul Lunt directly.