What happens if ECA goes bust?
This is highly unlikely as the ECA receives virtually all of its income through service charges paid by residents. It operates under not for profit principles with no dividends distributed to shareholders. It aims only to raise enough income to cover the actual costs of running the Association plus a small annual surplus. However should the situation ever arise, under the Memorandum of Association of ECA another suitable management company will take over the management of the site under the same terms as ECA. All the monies paid in service charges and provisions are held by law in trust for the residents and cannot be used by ECA other than for that particular development.
