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back to previous amendments
| 122 | Page 39, line 15, at end insert— |
| "( ) | Nor shall a failure to serve any qualifying tenant or tenants with a notice of invitation to participate invalidate the claim notice, so long as a sufficient number of qualifying tenants were members of the company on the relevant date." |
| 123 | Page 40, line 12, at end insert ", or |
| (c) | claiming that there are special reasons why the RTM company should not acquire the right to manage," |
| 124 | Page 40, line 18, after "(2)(b)" insert "or (c)" |
| 125 | Page 40, line 32, at end insert— |
| "(5A) | An objector shall establish that there are special reasons why the RTM company should not acquire the right to manage, if he shows— |
| (a) | that he would suffer serious prejudice by allowing the RTM company to acquire the right to manage, |
| (b) | that the prejudice he would suffer is significantly greater than the prejudice ordinarily suffered by those against whom the right to manage exercised, and |
| (c) | that in all the circumstances it is just and convenient that the RTM company should not acquire the right to manage. |
| (5B) | In particular, special reasons shall be established if the acquisition of the right to manage is sought with a view to delaying or avoiding the carrying out of necessary repairs to, or at, the premises." |
| 126 | Page 40, line 44, at end insert— |
| "(9) | If, on an application under subsection (3), it is finally determined that the company was on the relevant date entitled to acquire the right to manage the premises, the leasehold valuation tribunal, or any tribunal or court finally determining the application, shall specify a date, not less than three months from the date of final determination, on which the RTM company shall acquire the right to manage." |
| 127 | Insert the following new Clause— |
| | "Application for order that RTM company cease to have right to manage |
| (1) | After an RTM company acquires the right to manage any premises, from time to time any person who is— |
| (b) | a tenant of any part of the premises who is not a qualifying tenant; or |
| (c) | the landlord of the whole or any part of the premises (including mesne landlords) or 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, |
| | may apply to the leasehold valuation tribunal for an order that the RTM company cease to have the right to manage. |
| (2) | The grounds on which such an application may be made are that on the date of the application— |
| (a) | that where there are only two flats in the premises the tenants of both flats are not both qualifying tenants and members of the RTM company; |
| (b) | if there be more than two flats in the premises the tenants of fewer than one half of all the flats in the premises are both qualifying tenants and members of the RTM company; or |
| (c) | that the RTM company has failed adequately to manage the premises or has failed to carry necessary works of repair to, or at, the premises and that it is just and convenient that it should cease to have the right to manage the premises. |
| (3) | The application must be served on— |
| (b) | on the landlord of the whole or any part of the premises (including mesne landlords) and any management company party to any lease of the premises, or any part thereof, who but for the RTM company's right to manage would have the right to manage the premises. |
| (4) | The appropriate national authority may make regulations for the procedure for such applications, including provisions as to costs." |
| | The Lord Kingsland gives notice of his intention to oppose the Question that Clause 89 stand part of the Bill. |
| 128 | Page 46, line 8, at end insert— |
| "(8) | Unless the contractor party and the RTM otherwise agree in writing within a period of 28 days after service of a contract notice, the management contract shall continue in full force and effect from the acquisition date as if it had been made between the contractor party and the RTM and not with the manager party, save that the RTM shall have no liability under it for breaches on the part of the manager party occurring prior to the acquisition date." |
| | The Lord Kingsland gives notice of his intention to oppose the Question that Clause 90 stand part of the Bill. |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 129 | Insert the following new Clause— |
| | "Benefits and obligations under existing management contracts |
| (1) | Subject to subsections (2) and (3), the RTM company shall become entitled to the benefits and subject to the obligations of the manager party under the existing management contracts relating to the premises. |
| (2) | An existing management contract entered into after the date on which the claim notice under section 77(6) is given to the landlord may be terminated by the RTM company on not less than one month's notice unless the RTM company has agreed to the contract being entered into. |
| (3) | Any other existing management contract may be terminated by the RTM company on not less than one month's notice if, in the opinion of the directors of the RTM— |
| (a) | the consideration payable to the contractor party is excessive; |
| (b) | the services to be provided or other things to be done under the contract are inappropriate; or |
| (c) | the contractor party is not a fit and proper person to provide the services or do the other things required by the contract. |
| (4) | Any term of a contract which provides for any compensations to be payable for the exercise by a RTM company of rights under subsection (2) or (3) is void." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 130 | Insert the following new Clause— |
| ( ) | Upon the acquisition date previous contracts shall be null and void. |
| ( ) | The RTM company shall be under no obligation to continue contracts but the rules relating to frustrated contracts shall apply. |
| ( ) | Costs incurred at the date of frustration shall be recoverable, otherwise compensation shall not be payable." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 131 | Page 46, line 29, leave out "four" and insert "three" |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 132 | Insert the following new Clause— |
| | "Handover of management function at acquisition date |
| (1) | To ensure a proper handover of management function at the acquisition date, the following procedure shall be followed. |
| (2) | The acquisition date shall be no less than three months from the notice of claim to acquire the right to manage. |
| (3) | From the date of a counter-notice, or a period not less than two months before the acquisition date, the landlord shall be obliged to forward all management information on a daily basis. |
| (4) | The above procedures may be varied by agreement between the parties." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 133 | Page 47, line 9, leave out "four" and insert "three" |
| 134 | Page 47, line 12, leave out from "date" to end of line 13 |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 135 | Insert the following new Clause— |
| | "Funds available to RTM companies |
| (1) | To ensure that adequate funds are available to the RTM company, the following procedures shall apply. |
| (2) | The acquisition date shall be no less than three months from the notice of claim to acquire the right to manage. |
| (3) | At the acquisition date the landlord must hand over all uncommitted service charges and in the event that further incurred expenditure becomes apparent, but is not taken into account by the landlord, it shall be the duty of the RTM company to meet this expenditure subject to it being reasonably incurred. |
| (4) | The above procedures may be varied by agreement between the parties." |
| 136 | Insert the following new Clause— |
| | "Management functions: insurance |
| (1) | Notwithstanding the specific terms of any lease of the whole or part of the building, any person responsible for management functions in relation to the premises shall ensure that the entire building is insured under a single insurance policy. |
| (2) | Any person responsible for arranging an insurance policy under subsection (1) shall be under a duty to obtain best value for the service charge payers in procuring a suitable policy. |
| (3) | If, in the opinion of any party to a lease, the insurance policy arranged in accordance with subsection (1) does not represent best value for the service charge payers, they may refer the matter to the leasehold valuation tribunal for determination. |
| (4) | Any reference of an insurance policy to a leasehold valuation tribunal under this section shall be supported by an alternative quotation for insurance cover from a recognised and reputable supplier to support the case; and the leasehold valuation tribunal shall not consider any such reference unless it is supported by such an alternative quotation. |
| (5) | The duty to arrange insurance under subsection (1) applies notwithstanding the existence of a dispute which has been referred to the leasehold valuation tribunal. |
| (6) | In determining any dispute referred to it under subsection (3), the leasehold valuation tribunal shall take into account— |
| (a) | the extent of cover procured, and |
| (b) | the level of premium payable by individual service charge payers." |
| 137 | Page 48, line 39, at end insert— |
| "( ) | The RTM company must not grant an approval in relation to the making of alterations, improvements or change of use." |
| 138 | Page 48, line 43, leave out "the making of improvements or alterations of use" |
| 139 | Page 49, line 42, at end insert— |
| "( ) | In making its determination, the leasehold valuation tribunal shall act only in accordance with the provisions of the lease, and may not under any circumstances override any absolute prohibitions which may be contained in the lease." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 140 | Page 51, line 21, at end insert ", or the appropriate proportion shall be determined with regard to the method of allocation of service charge in other units. |
| ( ) | Failing agreement to determine the appropriate proportion by either method described in subsection (4), the matter shall be referred to a leasehold valuation tribunal." |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 141 | Page 57, line 21, at end insert— |
| "( ) | In any property where there is a non-residential element, the landlord may serve a counter-notice but shall be obliged to offer a 999 year lease of all the residential areas to the RTE company. |
| ( ) | Notwithstanding this, the RTE company shall have full rights to manage the residential area. |
| ( ) | The 999 year lease shall include suitable mutually enforceable covenants which may be specified in regulations." |
| | The Lord Kingsland gives notice of his intention to oppose the Question that Clause 113 stand part of the Bill. |
| | The Lord Kingsland gives notice of his intention to oppose the Question that Clause 117 stand part of the Bill. |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 142 | Page 58, line 38, at beginning insert "Subject to section 4AA," |
| 143 | Page 59, line 14, at end insert— |
| "(4) | A company which is a RTM company may not become a RTE company except by a resolution passed with the affirmative vote or written consent of all its members. |
| (5) | In this Part, "RTM company" has the same meaning as in Chapter 1 of Part 3 of the Commonhold and Leasehold Reform Act 2001." |
| 144 | Page 59, line 14, at end insert— |
| | "4AA RTE 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 RTE 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 object, is the exercise of the right to collective enfranchisement with respect to the premises. |
| (2) | Regulations may make modifications of this Act in relation to RTE companies which are limited liability partnerships." |
| 145 | Page 59, line 19, leave out from "premises" to end of line 22 |
| | THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS |
| 146 | Page 59, leave out lines 29 to 31 |
| 147 | Page 59, line 42, leave out "28" and insert "56" |
| | THE LORD GOODHART
THE BARONESS HAMWEE |
| 148 | Page 60, line 17, at end insert— |
| | "4BA Relevant conveyance to RTE companies |
| (a) | "relevant tenancy" means the tenancy of a flat contained in premises which were the subject of a relevant conveyance (as defined in section 4B) to a RTE company; and |
| (b) | "relevant tenant" means a person who at the time of the relevant conveyance was a participating member by virtue of holding a relevant tenancy and includes any successor in title of that person. |
| (2) | After the executions of the relevant conveyance to the RTE company, on the assignment of a relevant tenancy by a relevant tenant— |
| (a) | the assignor (unless he is also a relevant tenant under a relevant tenancy of another flat in the same premises) ceases to be a member of the RTE company; and |
| (b) | the assignee (unless he is already a member of the RTE company) shall become a member of the RTE company." |
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