It is used by either owning the freehold interests in the development of apartments or by managing the maintenance and services for a residential blocks or flats. It is also used by providing the necessary facilities to the residents. These residents acts as a flat management company directors and shareholders in the maintenance of a building but its not recommended that every person has to be the director but each individual would normally hold one share.

On the other hand, the company must be limited by guarantee in which all the residents and the owners could be the member of the company. The main advantage of this structure is that the directors are the only ones who has the charge of arranging the facilities to the common building areas. When one resident is willing to sell a property, all is needed is that they transfer their share in the flat management company to the purchasers. The owning interest can be changed by the transfer of a share, once its found that the shares or memberships are easily transferred and the freeholds owned by the company.