Reserves represent the net management fees plus surplus over the life of the company. These funds will be used against future liabilities of the property. However, in the event of dissolution, these funds will become due to some other institution (charitable or otherwise), they are not due back to the property owners in line with Section 3.3 and 3.4 of the Company's Artucles of Association.
The surplus of managment fees are separated in a Sinking Fund of £11,000 (2023 - £7,000) with the remaining balance to be used as working capital.