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back to previous amendments
| Page 89, leave out lines 3 to 13 on page 90 |
| Page 15, line 34, after "powers" insert "so far as possible" |
| Page 15, line 35, leave out "so far as possible" |
| Page 15, line 41, after "of" insert "the Articles of Association," |
| Page 16, line 3, leave out paragraph (a) |
| Page 16, line 11, leave out subsection (4) |
| Page 16, line 17, after "member" insert "who is entitled under the Articles of Association and the commonhold community statement to vote at a meeting convened to consider such a resolution," |
| Page 16, line 26, at end insert— |
| "(5) | A resolution is passed if a majority of the votes cast are in favour of the resolution. |
| (6) | A resolution is passed by a special majority if three-fourths of the votes cast are in favour of the resolution.") |
| Page 16, line 35, leave out "may" and insert "shall" |
| Page 17, line 3, leave out paragraph (g) |
| Page 17, line 7, leave out paragraph (i) |
| Page 17, line 8, at end insert— |
| "(j) | enabling a tenant to offset any payments made to the association against any monies owing to the unit-holder as landlord." |
| Page 17, line 13, at end insert— |
| "(c) | provision for charging the interest of a unit-holder who is in breach of any such duty to secure payment of any compensation or costs and interest thereon which he is liable to pay in respect of that breach of duty; |
| (d) | provision for the payment of costs." |
| Page 17, line 19, after "to" insert "prepare an annual statement of projected expenses which the association might reasonably expect to incur and to" |
| Page 17, line 24, at end insert— |
| "(ba) | enabling the directors to add to their estimate any sum which a unit-holder was previously required to pay under this section, but which remains unpaid despite all reasonable efforts by the directors to enforce payment," |
| Page 17, line 25, leave out from "the" to "which" in line 26 and insert "method by which the calculation of the proportion of the estimate of the expenses of the commonhold association" |
| Page 17, line 26, at end insert "but permitting the directors not to allocate any part of a sum added under paragraph (ba) to the unit to which it was previously allocated but unpaid" |
| Page 17, line 28, leave out "percentage" and insert "proportion" |
| Page 17, line 31, at end insert ", and |
| (f) | for the re-calculation of the proportion of the estimate of the expenses of the commonhold association, such provision to take effect in the event that there is any change in the number of units." |
| Page 17, line 33, leave out paragraph (a) |
| Page 17, line 35, leave out from "specify" to end of line 36 and insert "that a unit's proportion of the estimate of the expenses of the commonhold association is zero" |
| Page 17, line 36, at end insert— |
| "(3) | Payment of any sum allocated to a unit under this section shall be secured on that unit in priority to all other sums secured on it. |
| (4) | The Registrar shall note the effect of this section on the register relating to each unit." |
| Page 18, line 6, leave out "percentage" and insert "method by which the calculation of the proportion" |
| Page 18, line 9, leave out "percentage" and insert "proportion" |
| Page 18, line 13, at end insert— |
| "(e) | as to the payment of interest on any late payment of such a levy, and |
| (f) | for the re-calculation of the proportion of any levy, such provision to take effect in the event that there is any change in the number of units." |
| Page 18, line 14, leave out "(2)(c)" and insert "(2)(b)" |
| Page 18, line 15, leave out paragraph (a) |
| Page 18, line 17, leave out from "specify" to end of line 18 and insert "that a unit proportion of any levy is zero" |
| Page 18, line 18, at end insert— |
| "(3A) | The assets of a fund established and maintained by virtue of this section shall be treated as monies reserved for future expenditure. |
| (3B) | Any sums paid into a fund established and maintained by virtue of this section by a unit-holder, and any investments representing those sums, shall (together with any income accruing thereon) be held by the commonhold association on trust either as a single fund, or, if the commonhold association deems appropriate, as two or more separate funds. |
| (3C) | The commonhold association shall hold any trust fund— |
| (a) | on trust to defray costs incurred in connection with the matters for which the relevant contributions were payable (whether incurred by the commonhold association itself or by another person), and |
| (b) | subject to that, on trust for the persons who are the contributing unit-holders for the time-being. |
| (3D) | Subject to subsections (3F) and (3G), the contributing unit-holders shall be treated as entitled by virtue of subsection (3C)(b) to such shares in the residue of any such fund as are proportionate to their respective liabilities to pay a proportion of the levy set under sub-section (2). |
| (3E) | If the Secretary of State by order so provides, any sums standing to the credit of any trust fund may, instead of being invested in any other manner authorised by law, be invested in such manner as may be specified in the order; and any such order may contain such incidental, supplemental or transitional provisions as the Secretary of State considers appropriate in connection with the order. |
| (3F) | On the transfer of a commonhold unit, the unit-holder shall not be entitled to any part of any trust fund, and any part of such trust fund which is attributable to relevant contributions paid in accordance with this section shall accordingly continue to be held on the trusts referred to in subsection (3C). |
| (3G) | Any trust fund established under this section shall be exempt from any tax in respect of contributions made to it by the unit holders, whether (apart from this provision) a liability to tax may be imposed on the commonhold association or the contributing unit holder." |
| Page 18, line 32, after "unit-holder" insert "or the commonhold association" |
| Page 19, line 3, leave out "three" and insert "six" |
| Page 19, line 5, leave out "three" and insert "six" |
| Page 19, line 20, leave out paragraph (b) and insert— |
| "(b) | by a majority of 75 per cent. of the members of the commonhold community association who cast a vote on resolution." |
| Page 33, line 8, at end insert ", and |
| (d) | no part of the premises is let on a tenancy to which Part II of the Landlord and Tenant Act 1954 security of tenure for business, professional and other tenants applies." |
| Page 33, line 8, at end insert— |
| "( ) | But this Chapter does not apply to any part of a building which is not occupied, nor intended to be occupied, for residential use." |
| Page 95, line 36, leave out paragraph 1 |
| Page 33, line 26, leave out "a" and insert "an" |
| Page 33, line 27, leave out "a" and insert "an" |
| Page 33, line 28, leave out "guarantee" and insert "shares with at least the minimum paid up capital, divided into "A" shares and "B" shares" |
| Page 33, line 31, at end insert ", and |
| (c) | the sum to which each member of an RTM company undertakes to contribute to the company's assets if it should be wound up whilst he is a member, or within one year after he ceases to be a member, for payment of the company's debts and liabilities contracted before he ceased to be a member, and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves shall be the minimum sum, as defined in subsection (2A) below. |
| (2A) | The minimum sum mentioned in subsection (2)(c) above shall be the following amount, namely the greater of— |
| (a) | the total service charge and rent payable by tenants in respect of the premises in the two years prior to the acquisition date, or |
| (b) | twice the average service charge and rent payable in respect of the premises in the five years prior to the acquisition date, |
| | in each case divided by the number of members of the RTM company." |
| Page 33, line 31, at end insert— |
| "( ) | The minimum paid up capital of an RTM company shall be the following amount, namely the greater of,— |
| (a) | the total service charge and rent payable by tenants in respect of the premises in the two years prior to the acquisition date, or |
| (b) | twice the average service charge and rent payable in respect of the premises in the five years prior to the acquisition date." |
| Page 34, line 2, leave out subsections (1) and (2) and insert— |
| "( ) | The persons who are entitled to be holders of "A" shares in an RTM company shall be qualifying tenants of flats contained in the premises. |
| (a) | the landlord of the whole or any part of the premises (including mesne landlords), or |
| (b) | a management company party to any lease of the premises or any part thereof |
| | who prior to the acquisition date had the right to manage the premises shall be entitled to be holders of "B" shares in an RTM company. |
| ( ) | The acquisition date shall be the date on which the RTM company acquired the right to manage. |
| ( ) | The paid up capital of a "B" share in an RTM company shall be one pound and no person shall be required to hold more than one "B" share in an RTM company. |
| ( ) | The holders of "B" shares in an RTM company shall have the right to appoint two directors to the Board of Directors of the company and the right on a requisition signed by a majority of them to call extraordinary general meetings of the RTM company. |
| ( ) | The appropriate national authority shall (subject to section 71(2) and the previous sub-sections hereof) make regulations about the form and content of the memorandum of association and articles of association of RTM companies. |
| ( ) | Such regulations shall be laid before Parliament and shall be subject to an affirmative resolution of both Houses of Parliament." |
| Page 34, line 7, at end insert ", and |
| (c) | the holder of the freehold of the premises." |
| Page 34, line 10, at end insert— |
| "(2A) | Such regulations shall provide for the holder of the freehold of the premises to be able to appoint at least one director of the RTM company." |
| Page 34, line 28, at end insert ", and is either— |
| (a) | an individual residing in the flat; or |
| (b) | a company controlled directly or indirectly by an individual residing in the flat or jointly by individuals both or all residing in the flat." |
| Page 36, line 32, at end insert— |
| "( ) | set out the principal responsibilities and obligations which the company will assume as the manager of the premises, by referring to the relevant provisions of the Royal Institution of Chartered Surveyors service charge residential management code, or any other code relevant to the management of residential properties subject to a service charge which has been approved by the Secretary of State under the terms of section 87 of the Leasehold Reform, Housing and Urban Development Act 1993." |
| Page 36, line 41, at end insert— |
| "( ) | If a notice of invitation to participate is not served in accordance with this section, every director and officer of an RTM company at the time of the breach shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale. |
| ( ) | If any director or officer of an RTM intentionally fails to give notice to any qualifying tenant in accordance with this section, such director or officer shall be liable on summary conviction to not more than 3 months imprisonment and a fine not exceeding level 5 on the standard scale." |
| Page 36, line 41, at end insert— |
| "(3A) | Regulations shall prescribe that a notice to participate shall include, or be accompanied by, a prescribed statement setting out the principal responsibilities and obligations which the company shall assume as the manager of the premises and setting out in particular the relevant provisions of the service charge residential management code as made by the Royal Institute of Chartered Surveyors or such other code as may be approved by the Secretary of State under the terms of section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)." |
| Page 37, line 16, at end insert— |
| "(7) | A notice of invitation to participate shall be deemed to be properly served if it is sent by recorded delivery or hand-delivered to the last known address of the relevant qualifying tenant. |
| (8) | If a notice of invitation to participate is not served in accordance with this section, every director and officer of an RTM company at the time of the breach shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale." |
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