Page 65 - The AUDIO Affair pdfs

• Your comments as regards fees and costs paid to Directors for doing their fiduciary duty as working Directors of Mitre House Management Limited are unacceptable.
• As advised to you following your comments on the Minutes of the 23rd May meeting, fees paid were 58p per hour, or £7 a day, or £49 a week. Hardly excessive.
• 58p per hour does not cover the electricity used let alone the Council Tax, insurance and Quarterly Service Charge/Reserves of OUR office.
• Were you to do the work required in running Mitre House, almost 24/7/365 days, emails would go unacknowledged, documents would be unread or misunderstood, complaints
• and requests would be ignored and more often than not, you would be abroad. I doubt you would entertain 58p per hour as fair compensation (even for the service you would supply as listed)
•Conclusion (facts) re: Budgets & Reserves
• On 1st January 2012 (our first day in Management) the Internals were conservatively budgeted at £27,000 incl. vat for a very comprehensive set of works.
• On 13 June 2012 following the VOTE meeting, Management enlarged the budget to £35,000 inc. vat in response to various Lessee requests,
• Most significantly a thorough clean and repair of the Terrazzo as opposed to the originally budgeted very extensive good clean
• The first Section 20 was issued on 6th July 2012 (held up from 31st May due to your non response to voting Traditional or Belle Epoque, being too busy talking/phoning Flats 3, 4 and 8)
• This was after you visited my flat and agreeing with me Belle Epoque/Tiffany etc (or as you later said, telling me what I wanted to hear) and convincing Flats 3, 4 and 8 to attend 13 June 2012 meeting and change their vote.
• Flats 3, 4 and 8 had all confirmed to me Belle Epoque in their emails prior to deadline 31st May. You then insisted the (first) Section 20 be withdrawn as you wanted it issued by Best Gapp (your preferred Agents).
• You organised and others to also request same. We happily withdrew the Notice despite knowing we were well in breach of our Head Lease obligations which was well explained to you.
• Management made clear that they would issue Notices, not outside Agents, whom we did not wish to employ. Neither did Flat 4
• Another Section 20 was issued on 7th January 2013 followed by the second part on 21 June 2013, which was again ordered to be withdrawn, this time on your orders via your RTM Solicitors.
• We again complied knowing it meant we would have to do both Internals & Externals during 2014 without fail due to now being in serious breach of our Head Lease obligations.
• A (final) Section 20 was issued on 13th December 2013 for BOTH Internals & Externals to be done concurrently (commencing 1 September 2014) followed by the second Notice on 25th March 2014. • You tried (with others) to make all sorts of invalid accusations, all of which were proved to be
irrelevant and were ignored. Management permitted you to get a quote from your preferred contractor WADE.
• WADE's quote totalled £219,000 incl.vat and fees versus our cheapest quote (A&R Lawrence) for £105,000 incl. vat and fees.
• It should be noted that Management's budget for Internals on 13th June 2012 (your fist meeting) was for £35,000 incl. vat and fees and Management's estimated Externals budget (in July 2013) to be approx. £70,000.
• £35,000 plus £70,000 equals £105,000, meaning we (because of you) wasted almost two years (6 July 2012 - to date) and ended up with the exact same budget (£105,000) as that predicted on 1st January 2012 -
• But with significantly less workings to be entertained due to utilising one single contractor for all works (Internals/Externals) as opposed to Management's well documented cheaper individual contractors.
• Certainly there is no super duper Terrazzo floor clean and repair, but simply (as originally budgeted in 2012), an extensive and good clean in the £105,000 total budget
• Without a shadow of a doubt, the mischief caused by you and some fellow Lessees has delayed the Internals (and seriously jeopardised our Head Lease obligations),.
• This delay has caused the Internals & Externals to run concurrently and significantly reduced our (and yours) various proposed Internal workings from those originally proposed by Management.
• The reduction is in both the original £27,000 and £35,000 budgets in mid 2012, let alone your two original WADE quotes for £60,000 (3 July 2012 & 23 January 2013)
• It is now quite obvious that you have not represented Mitre House Management in the way your fellow Directors have done and have disagreed with almost every decision, proposal, idea or comment since day one.
• You were paid £2950.70 on 30 June 2013 which fully reimbursed your total outlay share in the Auction process (£2170) plus £780.90 meaning a small profit to date with very little or no input or assistance
• Your fellow Directors received £3235.70 plus £780.90. The reason being that they had all paid an additional £285 which you stubbornly refused to pay despite being advised it would be reimbursed.
• During 2014 you and your fellow Directors will be receiving a minimum £2750 payout, meaning you will have doubled your investment in two years.