Management companies: handover - Kuits Solicitors Manchester

Management companies: handover

Management companies: handover

22nd March 2021 - Published by Kuits Corporate team

How do developers hand over the management company for a development when it is done?

Understandably, developers will want to ensure a seamless transition of the management company once the last plot is sold. They want to do this knowing that all is in hand, and that the plot owners will take the management company forward.

The point at which the last flat/house is sold is often known as ‘handover’ and is usually the point at which the developer hands over responsibility of the management company to the property owners.

In order for this to be a smooth transition, there needs to have been careful consideration around:

  1. What happens at handover;
  2. What does the management company need to do at handover; and
  3. Are the flat/plot owners appointed as directors and have they become members of the company in readiness for handover?

What happens at handover?

Often, the articles of association state that at handover:

  1. Those directors of the management company who have been appointed by the developer will cease to be directors; and
  2. The developer will no longer be a member/shareholder of the management company.

What does the management company need to do?

At handover, the management company will need to:

  1. Ensure that there are other directors of the management company appointed – under the articles, these will usually need to be people who are also owners of a flat/house and they may have become directors when they bought their flat or house or may have agreed to be directors with effect from handover;
  2. Ensure that Companies House is updated to reflect that the directors have changed i.e. the directors appointed by the developer have resigned and others have been appointed; and
  3. Ensure that the statutory registers of the management company are updated to reflect that the developer is no longer a member/shareholder and that the flat/house owners are included in the registers as members/shareholders – they typically will have become members/shareholders when they acquired their plot and therefore should already be in the registers accordingly.

Get in touch with a Corporate Lawyer in Manchester

Are you looking for a seamless handover of your management company? Our Corporate Senior Associate Helen Mather will be happy to assist you on 0161 838 8183 or email

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