Commonhold and Leasehold Reform Bill - continued        House of Lords
PART I, COMMONHOLD - continued

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Termination: voluntary winding-up
100 per cent. agreement.     41. - (1) This section applies where a commonhold association-
 
 
    (a) has passed a winding-up resolution with 100 per cent. of the members of the association voting in favour, and
 
    (b) has appointed a liquidator.
      (2) The commonhold association may make a termination application within the period of six months beginning with the day on which the winding-up resolution is passed.
 
      (3) In this Part "winding-up resolution" means a resolution for voluntary winding-up within the meaning of section 84 of the Insolvency Act 1986.
 
      (4) In this section and sections 42 to 46 "liquidator" means a liquidator appointed under section 91 of that Act.
 
80 per cent. agreement.     42. - (1) This section applies where a commonhold association-
 
 
    (a) has passed a winding-up resolution with at least 80 per cent. of the members of the association voting in favour, and
 
    (b) has appointed a liquidator.
      (2) The commonhold association may within the prescribed period apply to the court for an order determining-
 
 
    (a) the terms and conditions on which a termination application may be made, and
 
    (b) the terms of the termination statement to accompany a termination application.
      (3) The commonhold association may make a termination application within the period of three months starting with the date on which an order under subsection (2) is made.
 
      (4) A termination application may be made by virtue of subsection (3) only in pursuance of a resolution passed-
 
 
    (a) during the period mentioned in that subsection, and
 
    (b) with more than 50 per cent. of the members of the association voting in favour.
Termination application.     43. - (1) A "termination application" is an application to the Registrar that all the land in relation to which a particular commonhold association exercises functions should cease to be commonhold land.
 
      (2) A termination application must be accompanied by a termination statement.
 
      (3) On receipt of a termination application the Registrar shall note it in the register.
 
Termination statement.     44. - (1) A termination statement must specify-
 
 
    (a) the commonhold association's proposals for the transfer of the commonhold land following acquisition of the freehold estate in accordance with section 46(2), and
 
    (b) how the assets of the commonhold association will be distributed.
      (2) A commonhold community statement may make provision requiring any termination statement to make arrangements-
 
 
    (a) of a specified kind, or
 
    (b) determined in a specified manner,
  about the rights of unit-holders in the event of all the land to which the statement relates ceasing to be commonhold land.
 
      (3) A termination statement must comply with a provision made by the commonhold community statement in reliance on subsection (2).
 
      (4) Subsection (3) may be disapplied by an order of the court-
 
 
    (a) generally,
 
    (b) in respect of specified matters, or
 
    (c) for a specified purpose.
      (5) An application for an order under subsection (4) may be made by any member of the commonhold association.
 
The liquidator.     45. - (1) This section applies where a termination application has been made in respect of particular commonhold land.
 
      (2) The liquidator shall notify the Registrar of his appointment.
 
      (3) The liquidator shall consider the termination statement submitted with the termination application and either-
 
 
    (a) notify the Registrar that the liquidator is content with the statement, or
 
    (b) apply to the court under section 112 of the Insolvency Act 1986 to determine the terms of the termination statement.
      (4) The liquidator shall send to the Registrar a copy of a determination made by virtue of subsection (3)(b).
 
      (5) Subsection (4) is in addition to any requirement under section 112(3) of the Insolvency Act 1986.
 
      (6) A duty imposed on the liquidator by this section is to be performed as soon as possible.
 
 
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