Commonhold and Leasehold Reform Bill [H.L.] -
Amendments to be debated in the House of Lords
- continued
House of Lords

back to previous amendments
 
  
Schedule 6
 
  
BY THE LORD LEA OF CRONDALL
THE BARONESS GIBSON OF MARKET RASEN
 
90     Page 78, line 3, leave out paragraph 1 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
THE LORD KINGSLAND
 
91     Page 78, line 22, leave out paragraph 2 
  
BY THE LORD KINGSLAND
 
91A     Page 79, line 18, leave out paragraph 4 
  
BY THE LORD CHANCELLOR
THE LORD GOODHART
THE BARONESS HAMWEE
 
92     Page 79, line 25, leave out paragraph 5 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
93     Page 79, line 32, leave out from ("company") to end of line 38 
  
BY THE LORD KINGSLAND
 
93A     Page 79, line 34, leave out ("four") and insert ("seven") 
  
Clause 70
 
  
BY THE LORD KINGSLAND
 
94     Page 30, line 4, leave out ("a") and insert ("an") 
95     Page 30, line 7, leave out ("guarantee") and insert ("shares with at least the minimum paid-up capital, divided into "A" shares and "B" shares") 
96     Page 30, line 10, at end insert--
 
    ("(  )  The minimum paid-up capital of an RTM company shall be 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.")
 
97     Page 30, line 11, leave out second ("a") and insert ("an") 
98     Page 30, line 13, leave out ("a") and insert ("an") 
  
BY THE LORD CHANCELLOR
THE LORD GOODHART
THE BARONESS HAMWEE
 
99     Page 30, line 13, leave out from ("company") to end of line 14 
  
BY THE LORD KINGSLAND
 
100     Page 30, line 14, leave out ("a") and insert ("an") 
  
BY THE LORD CHANCELLOR
 
101     Page 30, leave out lines 17 to 25 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
102     Page 30, line 17, leave out subsections (4) to (6) 
  
BY THE LORD KINGSLAND
 
103     Page 30, line 20, leave out ("a") and insert ("an") 
104     Page 30, line 24, leave out first ("a") and insert ("an") 
105     Page 30, line 27, leave out ("a") and insert ("an") 
106     Page 30, line 28, leave out ("a") and insert ("an") 
107     Page 30, line 30, leave out ("a") and insert ("an") 
  
BY THE LORD CHANCELLOR
 
108     Page 30, line 33, leave out ("1993 Act") and insert ("Leasehold Reform, Housing and Urban Development Act 1993 (referred to in this Part as "the 1993 Act").
 
    (  )  RTE company" has the same meaning as in Chapter I of Part I of the 1993 Act.")
1993 c. 28.
  
Clause 71
 
  
BY THE LORD KINGSLAND
 
109     Page 30, line 34, leave out subsections (1) and (2) and insert--
 
    ("(1)  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.
 
    (1A)  Any person being--
    (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.
 
    (1B)  The acquisition date shall be the date on which the RTM company acquired the right to manage.
 
    (1C)  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.
 
    (1D)  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.
 
    (1E)  The Secretary of State, after consultation with the National Assembly for Wales, shall (subject to section 70(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.
 
    (2)  Such regulations shall be laid before Parliament and shall be subject to an affirmative resolution of both Houses of Parliament.")
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
110     Page 30, line 37, leave out paragraph (b) 
  
BY THE LORD RICHARD
 
110A     Page 30, line 38, leave out ("under leases of the whole or any part of") and insert ("of any flat or flats within") 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
111     Page 30, line 39, at end insert (", and
    (  )  tenants under a long lease of any non-residential part of the premises")
 
  
BY THE LORD KINGSLAND
 
112     Page 31, line 1, leave out ("A") insert ("An") 
113     Page 31, line 3, leave out ("a") insert ("an") 
114     Page 31, line 5, leave out second ("a") insert ("an") 
115     Page 31, line 10, leave out ("a") insert ("an") 
  
After Clause 71
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
116     Insert the following new Clause-- 
     ("  .--(1)  A person who wishes to practice 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 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.")
Regulation of managing agents.
  
Clause 72
 
  
BY THE BARONESS MADDOCK
THE LORD GOODHART
 
117     Page 31, line 17, at end insert ("or is a registered social landlord, as defined by the Housing Act 1996, owning a long lease and whose tenant is an assured tenant under the terms of the Housing Act 1988") 
  
BY THE LORD KINGSLAND
 
118     Page 31, line 17, 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.")
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
119     Page 31, line 18, leave out subsection (3) 
  
BY THE BARONESS MADDOCK
THE LORD GOODHART
 
120     Page 31, line 19, at end insert--
 
    ("(  )  Subsection (2) does not apply where--
    (a)  the immediate landlord under the lease is a charitable housing trust;
    (b)  the flat forms part of the housing accommodation provided by it in the pursuit of its charitable purposes;
and "charitable housing trust" means a housing trust within the meaning of the Housing Act 1985 which is a charity within the meaning of the Charities Act 1993.")
 
  
Clause 73
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
121     Page 31, line 36, leave out ("21") and insert ("7") 
  
Clause 74
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
122     Page 32, line 35, leave out "(21") and insert ("7") 
123     Page 32, line 38, leave out ("21") and insert ("7") 
124     Page 32, line 41, leave out ("21") and insert ("7") 
  
Clause 75
 
  
BY THE LORD KINGSLAND
 
125     Page 33, line 16, leave out ("a") insert ("an") 
125A     Page 33, line 23, 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,")
 
126     Page 33, line 31, at end insert--
 
    ("(4)  The provisions of section 196 of the Law of Property Act 1925 as to service of notices shall apply to the service of notices under this section.
 
    (5)  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.
 
    (6)  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.")
 
126A     Page 33, line 31, at end insert--
 
    ("(  )  Any person on whom the RTM company must serve a claim notice under section 77(6) may, within 14 days of the service of a notice, serve a notice requiring the RTM company to provide proof that it has complied with this section, and the RTM company shall comply with that notice within 14 days of the date of the giving of the notice.")
 
  
After Clause 75
 
  
BY THE LORD WILLIAMS OF ELVEL
 
127     Insert the following new Clause-- 
     ("  .--(1)  To prepare for future management, prior to the service of a notice of invitation to participate, the RTM company may appoint a surveyor in accordance with section 84 of the Housing Act 1996 (right to appoint surveyor to advise on matters relating to service charges).
 
    (2)  A surveyor appointed under subsection (1) shall report on the current condition of the property, both physical and financial.")
Appointment
of surveyor.
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
128     Insert the following new Clause-- 
     ("  .--(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)  the names of 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 shall make provision about the form and content of the above.")
Prospectus.
  
Clause 76
 
  
BY THE LORD KINGSLAND
 
129     Page 33, line 33, after ("person") insert ("who has a right to manage the premises or any part thereof") 
130     Page 33, line 35, leave out paragraphs (a) and (b) 
131     Page 33, line 38, after ("information") insert ("which is in his possession, knowledge or control, and as to the matters required by section 78(3) and (4) to be stated in a claim notice") 
132     Page 34, line 5, 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.")
 
  
Clause 77
 
  
BY THE LORD KINGSLAND
 
132A     Page 34, line 12, leave out ("14") and insert ("28") 
133     Page 34, line 38, 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 78
 
  
BY THE LORD KINGSLAND
 
133A     Page 35, line 8, 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.")
 
133B     Page 35, line 8, 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.")
 
133C     Page 35, line 9, leave out ("one month") and insert ("two months") 
134     Page 35, line 12, leave out ("one month") and insert ("six months") 
135     Page 35, line 14, 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") 
  
BY THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL
 
136     Page 35, line 14, 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 85(1) should the events set out in section 86(1) occur.")
 
 
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Prepared 26 February 2001