Commonhold and Leasehold Reform Bill [HL]—
Amendments to be debated in the House of Lordscontinued

House of Lords

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Clause 72

 

THE LORD GOODHART
THE BARONESS HAMWEE

27Page 34, line 5, leave out paragraph (b)
 

THE LORD KINGSLAND

28Page 34, line 7, at end insert ", and
(c)  the holder of the freehold of the premises"
29Page 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."
 

Clause 74

 

THE LORD GOODHART
THE BARONESS HAMWEE

30Page 35, line 5, leave out "21" and insert "7"
 

Clause 75

 

THE LORD GOODHART
THE BARONESS HAMWEE

31Page 35, line 44, leave out "21" and insert "7"
32Page 36, line 1, leave out "21" and insert "7"
33Page 36, line 4, leave out "21" and insert "7"
 

Clause 76

 

THE LORD KINGSLAND

34Page 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 will assume as the manager of the premises and setting out in particular the relevant provisions of the service charge residential management code 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)."
 

THE LORD CHANCELLOR

35Page 37, line 16, at end insert—
"(   )  A notice of invitation to participate is not invalidated by any inaccuracy in any of the particulars required by or by virtue of this section."
 

Clause 77

 

THE LORD CHANCELLOR

36Page 37, line 22, leave out "in connection with the making of a claim" and insert "for ascertaining the particulars required by or by virtue of section 79 to be included in a claim notice for claiming"
37Transpose Clause 77 to after Clause 80
 

Clause 79

 

THE LORD KINGSLAND

38Page 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."
39Page 38, line 39, leave out "one month" and insert "six months"
40Page 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"
41Page 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."
 

Clause 82

 

THE LORD CHANCELLOR

42Page 40, line 30, leave out from "given" to "in" in line 32 and insert "agrees, or the persons by whom the counter-notices were given agree,"
 

Clause 85

 

THE LORD CHANCELLOR

43Page 42, line 21, at end insert—
"(   )  Subsection (1) does not apply if the person by whom the counter-notice was given has, or the persons by whom the counter-notices were given have, (before the time when the withdrawal would be taken to occur) agreed in writing that the RTM company was on the relevant date entitled to acquire the right to manage the premises."
 

Clause 90

 

THE LORD KINGSLAND

44Page 46, line 8, at end insert—
"(8)  Unless the contractor party and the RTM company 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 company and not with the manager party, save that the RTM company shall have no liability under it for breaches on the part of the manager party occurring prior to the acquisition date."
 

After Clause 90

 

THE LORD GOODHART
THE BARONESS HAMWEE

45Insert 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."
 

Clause 91

 

THE LORD CHANCELLOR

46Page 46, line 10, after "company," insert "the company may give notice to"
47Page 46, line 16, leave out "must" and insert "requiring him to"
48Page 46, line 17, leave out "him to provide"
49Page 46, line 20, leave out "RTM company" and insert "notice"
50Page 46, line 28, leave out "person may not be required" and insert "notice may not require a person"
51Page 46, line 31, after "required" insert "by a notice"
52Page 46, leave out line 33 and insert "notice is given"
 

Clause 96

 

THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL

53Page 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 which will diminish the reversionary value of the landlord's interest."
 

THE LORD CHANCELLOR

54Page 48, line 43, after "of" insert "structural alterations or"
 

Schedule 7

 

THE LORD CHANCELLOR

55Page 100, line 12, at end insert—
"(   )      The power in section 24 to make an order appointing a manager to carry out functions includes a power (in the circumstances specified in subsection (2) of that section) to make an order that the right to manage the premises is to cease to be exercisable by the RTM company; and such an order may include provision with respect to incidental and ancillary matters (including, in particular, provision about contracts to which the RTM company is a party and the prosecution of claims in respect of causes of action, whether tortious or contractual, accruing before or after the right to manage ceases to be exercisable)."
56Page 100, line 21, after "42B" insert "of the 1987 Act"
57Page 101, line 23, leave out "registered" and insert "recognised"
 

Clause 103

 

THE LORD CHANCELLOR

58Page 52, line 29, leave out "is"
59Page 52, line 30, at end insert ", begins so to act or an order under that Part of that Act that the right to manage the premises is to cease to be exercisable by the RTM company takes effect."
 

Clause 111

 

THE LORD CHANCELLOR

60Page 57, line 5, column 2, leave out "Section" and insert "Sections 69(1) and"
 

Clause 113

 

THE LORD KINGSLAND

61Leave out Clause 113
 

Clause 115

 

THE LORD KINGSLAND

62Page 58, line 7, after "units" insert "or following the conversion for 10 or more years before the date hereof"
 

Clause 117

 

THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL

63Leave out Clause 117
 

Clause 119

 

THE LORD GOODHART
THE BARONESS HAMWEE

64Page 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."
65Page 59, line 19, leave out from "premises" to end of line 22
66Page 60, line 17, at end insert—
  "4BA Relevant conveyance to RTE companies
(1)  In this section—
(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."
 

Clause 120

 

THE LORD CHANCELLOR

67Page 61, line 40, at end insert—
"(6)  A notice of invitation to participate shall not be invalidated by any inaccuracy in any of the particulars required by or by virtue of this section."
 

Schedule 8

 

THE LORD CHANCELLOR

68Page 102, line 20, leave out "RTE company" and insert "company (referred to in this Chapter as a RTE company)"
69Page 108, line 24, leave out "section" and insert "sections 1(1) and"
 

Clause 123

 

THE LORD KINGSLAND

70Page 62, line 9, leave out from "payable)," to end of line 10 and insert "in paragraph 1(1), for the definition of "the valuation date" substitute—
  ""the valuation date" means the date of service of the reversioner's counter-notice.""
 

THE EARL OF CAITHNESS

71Leave out Clause 123
 

After Clause 123

 

THE LORD GOODHART
THE BARONESS HAMWEE

72Insert the following new Clause—
  "Abolition of marriage values
  In Schedule 6 to the 1993 Act, omit—
(a)  paragraph 2(1)(b);
(b)  paragraph (4);
(c)  paragraph 5A(2)(b);
(d)  paragraph 5C;
(e)  paragraphs 9 and 9A;
(f)  paragraph 10(1)(b);
(g)  paragraph 12;
(h)  paragraphs 15 and 16; and
(i)  paragraphs 19 and 20."
 

THE LORD KINGSLAND

73Insert the following new Clause—
  "Price payable by nominee purchaser
  In paragraph 2(1) of Schedule 6 to the 1993 Act, at the end insert—
"(d)  a sum equivalent to the interest accruing at the base rate applied by the London clearing banks at the time to a principal sum which is equivalent to the aggregate sum of the values derived from paragraphs (a) to (c) above during the period between the valuation date and the date of the completion of the transaction"."

 
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©Parliamentary copyright 2001
13 November 2001