# RTM company

A private company limited by guarantee, set up by leaseholders, whose object is to acquire and exercise the right to manage their building.

Also called: right to manage company, RTM Co.

An RTM company is the vehicle leaseholders use to claim and then exercise the [right to manage](https://runyourblock.co.uk/glossary/right-to-manage).

## The rules it must follow

- It must be a **private company limited by guarantee** (s.73(2)). Members guarantee a nominal sum rather than owning shares.
- Its name must end with **"RTM Company Limited"** (or the Welsh equivalent).
- Its articles are set by law: the prescribed model articles apply whether or not the company adopts them.
- There can be only **one RTM company** for a building (s.73(4)).

## Who can be a member

- Every [qualifying tenant](https://runyourblock.co.uk/glossary/qualifying-tenant) is entitled to join. The directors check eligibility and register them; they don't "approve" members.
- From the acquisition date, landlords of the building can also join. Since 3 March 2025, landlords' votes are capped at one third of the votes of the qualifying tenants.

## Not the same as

An RTM company doesn't own the building. A [residents' management company](https://runyourblock.co.uk/glossary/residents-management-company) is usually named in the leases, and a [freehold company](https://runyourblock.co.uk/glossary/freehold-company) owns the freehold. See [RTM company, RMC or freehold company?](https://runyourblock.co.uk/guides/your-company/rtm-company-rmc-or-freehold-company).

## Related terms

- [Right to manage (RTM)](https://runyourblock.co.uk/glossary/right-to-manage)
- [Qualifying tenant](https://runyourblock.co.uk/glossary/qualifying-tenant)
- [Residents' management company (RMC)](https://runyourblock.co.uk/glossary/residents-management-company)
- [Freehold company](https://runyourblock.co.uk/glossary/freehold-company)

## Sources

- [Commonhold and Leasehold Reform Act 2002, s.73 (RTM companies)](https://www.legislation.gov.uk/ukpga/2002/15/section/73)
- [Commonhold and Leasehold Reform Act 2002, s.74 (membership)](https://www.legislation.gov.uk/ukpga/2002/15/section/74)
- [RTM Companies (Model Articles) (England) Regulations 2009](https://www.legislation.gov.uk/uksi/2009/2767/contents)
- [RTM Companies (Model Articles) (England) (Amendment) Regulations 2025](https://www.legislation.gov.uk/uksi/2025/130/contents/made)
- [Companies House: About flat management companies, RTM companies and commonhold associations](https://www.gov.uk/government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/rtm-company