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A guide to the differences between being a leaseholder and a shareholder.

It’s quite common for a block of flats to be owned or managed by a company made up of the leaseholders. These are usually known as Residents’ Management Companies (RMCs) or Right to Manage Companies (RTMs) — for ease, we’ll use ‘RMCs’ to refer to both in this Advice Note.

Being a leaseholder and being a shareholder or member of an RMC is not the same, even though you could be both. RMC directors need to keep a clear distinction between the two roles when making decisions.

In this Advice Note, we’ll take a look at some of the differences between the two roles and how this can affect the way your block is run.