What Is a Residents' Management Company?

Published by Leaseholder Led · Independent guide — 6 May 2026

Why this matters to leaseholders

Many leaseholders know there is a “management company” somewhere in their paperwork but have no clear picture of what it does or who runs it. That confusion matters practically: the company structure often determines whether leaseholders can change the managing agent directly or need to go through a more complex legal process.

Before organising neighbours and embarking on a months-long statutory process, it is worth spending a few hours understanding the existing legal structure. The answer can significantly change the route available — and the time it takes.

For a broader look at managing agent change routes, see our guide on how to find and change to a new managing agent.

Key terms explained

How an RMC is created

Residents' Management Companies are usually set up by the original developer when a building is constructed or converted. The developer incorporates the company, names it in the leases, and may initially control it through developer-appointed directors. Over time, as all flats are sold, those director positions may transfer to leaseholder representatives — or they may not, depending on how the company was structured.

The RMC is registered at Companies House. Unlike an RTM company, its articles of association do not have to follow a prescribed form — which means the governance structure varies considerably between buildings. What the company can and cannot do depends on its own articles, the lease provisions, and any separate management agreement.

How to check who controls your RMC

Start with Companies House at companieshouse.gov.uk. Search for the company name or your building's address. The key things to check:

• •Current directors — are they leaseholders in the building? Or developer, freeholder, or professional appointments?
• •Type of company — is it a company limited by shares or limited by guarantee? Share-based companies may have defined shareholding arrangements in the lease.
• •Filing history — are annual returns and accounts being filed? A dormant or non-compliant company may signal that no one is actively managing it.
• •Articles of association — who can appoint and remove directors? Who holds the shares or memberships? Is there a mechanism for leaseholders to elect or dismiss directors?

Then check your lease and transfer deed. Look for: who appoints the managing agent, what the management structure is, how directors are appointed, and whether you automatically became a member or shareholder when you bought your flat.

If leaseholders already control the RMC

If leaseholders control the company — meaning they hold the shares or memberships and can appoint the directors — and the company has authority under the management agreement to appoint the managing agent, the route to changing agent may be significantly simpler than RTM.

In practice, this means checking the existing management contract: what is the notice period? Are there any restrictions on termination? Is there a minimum term that has not yet expired? If the contract can be terminated on reasonable notice, leaseholders controlling the RMC can simply appoint a replacement agent through a structured selection process.

For more detail on how this route works, see our guide on changing managing agent without Right to Manage.

If leaseholders do not control the RMC

If the RMC is controlled by developer-appointed or freeholder-appointed directors, leaseholders may have limited direct influence. The options depend on the company's articles:

• •AGM director elections. If the articles allow leaseholders to nominate or elect directors, an AGM may be the route to changing the board over time.
• •Requesting a general meeting. Members holding a sufficient proportion of the voting rights can requisition a meeting to consider specific resolutions.
• •Right to Manage. If the management structure means leaseholders cannot change agent through the existing company, RTM is the statutory route that bypasses the existing arrangement entirely.

Before pursuing RTM, it is worth checking whether the RMC's articles can be used to bring leaseholders into control more quickly. In some buildings, a well-attended AGM achieves more than months of RTM preparation.

Am I automatically a member of my RMC?

This varies significantly between buildings. In some cases, purchasing a flat automatically makes you a member of the management company on completion — your solicitor should have noted this at the time of purchase and transferred the relevant share or membership. In other buildings, membership requires a separate application or registration step that is sometimes overlooked during conveyancing.

To check: look at your completion documentation, your lease, and the transfer deed. Then cross-reference with the Companies House members register. If you should be a member and are not, your solicitor can usually rectify this — it is not uncommon for new leaseholders to find the paperwork was not completed properly at purchase.

What the RMC does and does not do

It is important to distinguish between the management company and the managing agent:

• •The RMC is the legal entity with management authority — it holds the contractual power to appoint and instruct the managing agent.
• •The managing agent is the professional firm doing the day-to-day work: collecting service charges, managing contractors, organising insurance, handling leaseholder enquiries.
• •The RMC does not usually carry out management itself — it delegates those functions to the managing agent under a management contract.

When leaseholders complain about their “management company,” they often mean the managing agent. When the question is who has the power to change the management arrangement, the answer is usually the RMC — if leaseholders control it.

Common questions

Related guides

• •Can I Change My Managing Agent Without Right to Manage? — how to act when leaseholders already have management control
• •What Is Right to Manage and Do I Need It? — when RTM is the right route and what it involves
• •What Is a Right to Manage Company? — how an RTM company differs from an RMC and what it does
• •Self-Managed Company Leasehold: What It Means in Practice — when leaseholders run management without a professional agent
• •How to Change Management Company — the steps involved in moving to a different managing agent