Companies Act 2006
Just like their commercial counterparts, all residential management companies are governed by the Companies Act 2006. This Act is the most significant company legislation since 1948, and contains 1300 sections and 16 schedules! It was also brought into effect in stages, starting in January 2007 with the final, (and main), provisions becoming operative on 1st October 2009.
There is now no statutory requirement for a private company to hold any general meetings, not even an Annual General Meeting. This change was introduced when Part 13 of the Companies Act 2006 (resolutions and meetings) came into effect on 1st October 2007. Before that, all companies were required to hold an Annual general Meeting, though since the 1989 Act came into effect it has been possible for private companies to opt out if holding AGMs, by passing a (now defunct) elective resolution.
Some companies’ articles will require them to hold an AGM and any such provision will continue to be binding on the company until the articles are amended. A company may hold an AGM even though not bound to by the Act or its articles.
The former statutory requirement to lay accounts before the general meeting has been replaced by a provision requiring them to be sent to the members through s423 (duties to circulate copies of annual accounts and reports), s424 (time allowed for sending out copies of accounts and reports) and s425 (default in sending out copies of accounts and reports: offences) of the Act.