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back to previous amendments
| 81 | Page 18, line 32, after "unit-holder" insert "or the commonhold association" |
| 82 | Page 19, line 3, leave out "three" and insert "six" |
| 83 | Page 19, line 5, leave out "three" and insert "six" |
| 84 | 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." |
| | The Lord Kingsland gives notice of his intention to oppose the Question that Clause 41 stand part of the Bill. |
| 85 | Page 33, line 8, at end insert ", and |
| (d) | no part of the premises is let on a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (security of tenure for business, professional and other tenants) applies." |
| 86 | 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." |
| 87 | Page 95, line 36, leave out paragraph 1 |
| 88 | Page 33, line 26, leave out "a" and insert "an" |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 89 | Page 33, line 27, at beginning insert "Subject to section 71A," |
| 90 | Page 33, line 27, leave out "a" and insert "an" |
| 91 | 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" |
| 92 | 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." |
| 93 | 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." |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 94 | Insert the following new Clause— |
| | "71A RTM companies: limited liability partnerships |
| (1) | The Secretary of State may by order direct that, as an alternative to being a private company limited by guarantee, a body corporate may be a RTM company in relation to premises if it is a limited liability partnership and an agreement between its members states that its object, or one of its objects, is the acquisition and exercise of the right to manage the premises. |
| (2) | Regulations may make modifications of this Chapter in relation to RTM companies which are limited liability partnerships." |
| 95 | 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 subsections 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." |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 96 | Page 34, line 5, leave out paragraph (b) |
| 97 | Page 34, line 7, at end insert ", and |
| (c) | the holder of the freehold of the premises." |
| 98 | 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." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 99 | Insert the following new Clause— |
| (1) | A person who wishes to practise as a managing agent and hold the service charge trust fund shall be required to— |
| (a) | be subject to a code of practice, |
| (b) | undergo yearly auditing of accounts, |
| (c) | be covered by professional indemnity and fidelity insurance, and |
| (d) | undergo a minimum quota of annual management training. |
| (2) | Regulations under this section shall make provision about the form and content of the above and make such other rules, requirements and restrictions as may be appropriate to ensure proper standards are maintained and the interests of landlords, RTM companies and leaseholders are safeguarded." |
| 100 | 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." |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 101 | Page 35, line 5, leave out "21" and insert "7" |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 102 | Page 35, line 44, leave out "21" and insert "7" |
| 103 | Page 36, line 1, leave out "21" and insert "7" |
| 104 | Page 36, line 4, leave out "21" and insert "7" |
| 105 | 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 (c. 28)." |
| 106 | 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." |
| 107 | Page 36, line 41, at end insert— |
| "( ) | 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 Institution 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)." |
| 108 | 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." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 109 | Insert the following new Clause— |
| | "Appointment of a surveyor |
| | In order that the RTM company should be better able to prepare for future management, prior to the service of a notice of invitation to participate, it may appoint a surveyor in accordance with section 84 of the Housing Act 1996 (c. 52) (right to appoint surveyor to advise on matters relating to service charges) to report on the current condition of the property, both physical and financial." |
| 110 | Insert the following new Clause— |
| | "Information to prospective members of RTM company |
| (1) | A notice of invitation to participate shall be accompanied by a prospectus which shall include— |
| (a) | a financial plan to deal with the potential shortfall between the service charge income and expenditure, |
| (b) | any professional advisors the RTM company intends to appoint, |
| (c) | any major plans for expenditure in the first year of management, and |
| (d) | a copy of the memorandum and articles of the RTM company. |
| (2) | Regulations under this section shall make provision about the form and content of the above." |
| 111 | Page 37, line 19, after "person" insert "who has a right to manage the premises, or any part thereof," |
| 112 | Page 37, line 21, after "his" insert "knowledge," |
| 113 | Page 37, line 22, leave out paragraph (b) and insert— |
| "(b) | as to the matters required by section 79(3) and (4) to be stated in a claim notice." |
| 114 | Page 37, line 35, at end insert— |
| "(4) | A failure without reasonable excuse to comply with such a notice shall be an offence, punishable on summary conviction with a fine not exceeding level 3 on the standard scale." |
| 115 | Page 37, line 42, leave out "14" and insert "28" |
| 116 | Page 38, line 35, at end insert— |
| "( ) | It must contain a statement that the members of the RTM company have been informed of the principal responsibilities and obligations which the company will assume as the manager of the premises on acquiring the right to manage, and that all members have understood and accepted the resulting duties and obligations which will fall to them as members of the RTM company." |
| 117 | Page 38, line 35, at end insert— |
| "( ) | It must include an offer of cover to provide for the RTM company directors' and officers' liability insurance, fidelity guarantee and professional indemnity insurance." |
| 118 | Page 38, line 39, leave out "one month" and insert "six months" |
| 119 | Page 38, line 41, at end insert ", or must state that the RTM company intends to apply to the leasehold valuation tribunal for it to acquire the right to manage at an earlier date" |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 120 | Page 38, line 41, at end insert— |
| "( ) | It must state that each person who becomes a member of the RTM company shall be liable for costs incurred (jointly and severally with the RTM company and each other person who is so liable) by those persons specified in section 86(1) should the events mentioned in section 87(1) occur." |
| 121 | Page 39, line 5, at end insert— |
| "(10) | Regulations may provide for the procedure for an RTM company to apply to a leasehold valuation tribunal for the acquisition of the right to manage earlier than six months after the relevant date." |
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