Directors' duties & governance

Running Your Building's Company With Just One or Two of You? Here's What the Numbers Say

Quick summary

Looking across thousands of genuinely self-managed freehold and Right to Manage companies, boards under an active strike-off notice average just 1.82 directors, well below the 2.99–3.13 average everywhere else. More than a third of struck-off companies have only one or two directors on the board. It doesn't mean a small board is doomed, but it is the clearest evidence that the smallest, least-resourced boards are the ones falling behind.

If it's just you and one other name on the paperwork, you've probably wondered whether that's normal, or a quiet problem waiting to happen. We looked at the numbers behind thousands of buildings like yours, and there's a real pattern worth knowing about.

What the numbers actually show

Across the self-managed freehold and Right to Manage companies we looked at, all of them in London, the average board runs three directors. Companies currently under an active strike-off notice look nothing like that average: 1.82 directors, on average, and more than a third of them have just one or two people on the board at all. Everywhere else in the data, whether a company's compliance is on track, coming up for renewal, or already overdue, the average sits between 2.99 and 3.13 directors. Strike-off is the one stage where the board is genuinely, noticeably smaller.

Why fewer directors means more risk, not less paperwork

The admin a self-managed building generates doesn't shrink because fewer people are doing it. A confirmation statement, a director's change of address, an overdue accounts filing, a share transfer, all still need doing whether it's one person carrying them or four. With a board of three or four, one person moving away or losing patience for a while still leaves others who can pick things up. With a board of one or two, that same gap has nobody behind it. It's not that small boards are careless. It's that they have no slack built in.

Closing the gap without recruiting a full board

Getting a third or fourth name onto the board is the most direct fix, and worth raising at the next AGM even if it feels like a big ask. It doesn't have to be someone doing the same amount of work, just someone who can see what's outstanding and act if the usual person can't.

Short of that, two things matter more than headcount. First, make sure whoever's on the board actually has shared access to the company's filings and records, rather than everything living in one person's head or inbox. Second, let something other than memory carry the deadlines. A calendar reminder that only reaches one person is exactly the single point of failure a two-director board can't afford.

For what a typical board actually looks like, we counted: what's a normal board size for a self-managed building. A board of three where one has disengaged is effectively a board of two, which is the situation described in when a director goes quiet.

Frequently asked questions

Does having only one or two directors mean our company is automatically at risk?

No. Plenty of two-director boards stay fully compliant for years. The data shows a correlation, not a guarantee. A small board that keeps its deadlines and shares access properly can be just as solid as a larger one. It's the combination of a small board and no shared system for tracking things that tends to be where problems start.

How many directors should a self-managed building have?

Genuinely self-managed freehold and Right to Manage companies average three directors, which gives some natural redundancy if one person's away or steps back. There's no legal minimum above one for most private companies, but three is a reasonable number to aim for if your building can find them.

What can two directors actually do to lower the risk, short of finding a third?

Give both directors access to the same records and filings rather than one holding it all, and use reminders that reach both of you rather than relying on whoever usually remembers. Checking your company's current strike-off status is also worth doing now rather than waiting for a Gazette notice to tell you.

FreeholdMate isn't a firm of solicitors or chartered accountants, and nothing on this page is legal or financial advice. Where something depends on your building's specific circumstances, check with a solicitor or accountant.