Page 81 - NEW FINAL 616 BIG BAD BEGG

satisfied that the quotation specifications were identical and agreed that the works be allocated to A& R Lawrence being the lowest bidder.
MH suggested that the works be split into internal and external and be carried out at separate times.
SK mentioned that under the head lease obligations and as the Head Lessee, MHML is already in breach of its lease agreement.
PBC and MH mentioned that the internals need be done every 7 years and the external every 5 years. As the externals have not been done for 13 years they are
well in breach of our Head Lease. PBC mentioned that MHML are lucky as so far the freeholders have not committed MHML for the breach. But we as Directors cannot take the risk by delaying the works any further.
SK also mentioned that if there are any accidents to the public resulting from any of the externals of the building, the Board of Directors will be criminally negligent by not discharging their duties.
MH mentioned that the insurance will pay out for any damages. PBC mentioned that they will not as any insurance would say we have breached the lease agreement.
7 Bank Accounts
MH wanted to know about the bank balances, PBC provided MH with a list of all the bank accounts and balances and explained to MH the details of their operations between MHML and the Lessees management accounts.
MH reviewed the accounts and raised specific entries in the bank accounts and PBC has provided all the details to MH and MH can arrange with PBC for the inspections.
8 Service Charges
MH wanted to know who had decided to reduce the service charges for the tenants. PBC
said it was advised to MH in various emails which she agreed.
MH mentioned that the reduction of the service charge had led to a shortfall in the sinking fund.
SK countered that it was not true as the amount allocated to the sinking fund is in the same proportion as it was under the previous management of Kinleigh Folkard Hayward and indeed prior to that by Haywards.
PBC produced an analysis spreadsheet of the past 9 years and in fact MHML has maintained the same charge to the sinking fund and prudently saved on basic running costs unlike the previous management.
8 Other matters