Commonhold and Leasehold Reform Bill -
Amendments to be debated in the House of Lords
- continued
House of Lords

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Clause 38
 
  
BY THE LORD CHANCELLOR
 
     Page 16, line 42, after ("the") insert ("directors of the") 
     Page 17, line 1, after ("the") insert ("directors of the") 
     Page 17, line 7, after ("the") insert ("directors of the") 
  
BY THE LORD KINGSLAND
 
     Page 17, line 9, leave out ("percentage") and insert ("method by which the calculation of the proportion") 
     Page 17, line 12, leave out ("percentage") and insert ("proportion") 
  
BY THE LORD CHANCELLOR
 
     Page 17, line 14, after ("the") insert ("directors of the") 
     Page 17, line 15, at end insert ("and the date on which each payment is due.") 
  
BY THE LORD KINGSLAND
 
     Page 17, line 15, at end insert ("and the date by which payment should be received") 
     Page 17, line 15, at end insert (", and
      (  )  as to the payment of interest on any late payment of such a levy")
 
     Page 17, line 15, at end insert (", and
      (  )  for the recalculation of the proportion of any levy, such provision to take effect in the event that there is any change in the number of units")
 
     Page 17, line 16, leave out ("2(c)") and insert ("2(b)") 
     Page 17, line 17, leave out paragraph (a) 
     Page 17, line 19, leave out ("0 per cent. in relation to a unit") and insert ("that a unit's proportion of any levy is zero") 
     Page 17, line 20, at end insert--
        ("(3A)  The assets of a fund established and maintained by virtue of this section shall be treated as monies reserved for future expenditure.
        (3B)  Any sums paid into a fund established and maintained by virtue of this section by a unit-holder, and any investments representing those sums, shall (together with any income accruing thereon) be held by the commonhold association on trust either as a single fund, or, if the commonhold association deems appropriate, as two or more separate funds.
        (3C)  The commonhold association shall hold any trust fund--
      (a)  on trust to defray costs incurred in connection with the matters for which the relevant contributions were payable (whether incurred by the commonhold association itself or by another person), and
      (b)  subject to that, on trust for the persons who are the contributing unit-holders for the time being.
        (3D)  Subject to subsections (3F) and (3G), the contributing unit-holders shall be treated as entitled by virtue of subsection (3C)(b) above to such shares in the residue of any such fund as are proportionate to their respective liabilities to pay a proportion of the levy set under subsection (2) of this section.
        (3E)  If the Secretary of State by order so provides, any sums standing to the credit of any trust fund may, instead of being invested in any other manner authorised by law, be invested in such manner as may be specified in the order; and any such order may contain such incidental, supplemental or transitional provisions as the Secretary of State considers appropriate in connection with the order.
        (3F)  On the transfer of a commonhold unit, the unit-holder shall not be entitled to any part of any trust fund, and any part of such trust fund which is attributable to relevant contributions paid in accordance with this section shall accordingly continue to be held on the trusts referred to in subsection (3C).
        (3G)  Any trust fund established under this section shall be exempt from any tax in respect of the contributions made to it by the unit-holders, whether (apart from this provision) a liability to tax may be imposed on the commonhold association or the contributing unit-holder.")
 
  
Clause 39
 
  
BY THE LORD KINGSLAND
 
     Page 17, line 34, after ("unit-holder") insert ("or the commonhold association") 
  
Clause 40
 
  
BY THE LORD KINGSLAND
 
    Page 18, line 22, leave out paragraph (b) and insert--  
 
      ("(b)  by a majority of 90 per cent. of the members of the commonhold community association who cast a vote on resolution")
 
  
After Clause 40
 
  
BY THE LORD CHANCELLOR
 
     Insert the following new Clause-- 
 
        (".--(1) Regulations may provide that a commonhold association shall be a member of an approved ombudsman scheme.
        (2)  An "approved ombudsman scheme" is a scheme which is approved by the Lord Chancellor and which--
      (a)  provides for the appointment of one or more persons as ombudsman,
      (b)  provides for a person to be appointed as ombudsman only if the Lord Chancellor approves the appointment in advance,
      (c)  enables a unit-holder to refer to the ombudsman a dispute between the unit-holder and a commonhold association which is a member of the scheme,
      (d)  enables a commonhold association which is a member of the scheme to refer to the ombudsman a dispute between the association and a unit-holder,
      (e)  requires the ombudsman to investigate and determine a dispute referred to him,
      (f)  requires a commonhold association which is a member of the scheme to cooperate with the ombudsman in investigating or determining a dispute, and
      (g)  requires a commonhold association which is a member of the scheme to comply with any decision of the ombudsman (including any decision requiring the payment of money).
        (3)  In addition to the matters specified in subsection (2) an approved ombudsman scheme--
      (a)  may contain other provision, and
      (b)  shall contain such provision, or provision of such a kind, as may be prescribed.
        (4)  If a commonhold association fails to comply with regulations under subsection (1) a unit-holder may apply to the High Court for an order requiring the directors of the commonhold association to ensure that the association complies with the regulations.
        (5)  A reference in this section to a unit-holder includes a reference to a tenant of a unit.")
Ombudsman.
  
Before Clause 41
 
  
BY THE LORD CHANCELLOR
 
     Insert the following new Clause-- 
 
        (".--(1) A winding-up resolution in respect of a commonhold association shall be of no effect unless--
      (a)  the resolution is preceded by a declaration of solvency,
      (b)  the commonhold association passes a termination-statement resolution before it passes the winding-up resolution, and
      (c)  each resolution is passed with at least 80 per cent. of the members of the association voting in favour.
        (2)  In this Part--
      declaration of solvency" means a directors' statutory declaration made in accordance with section 89 of the Insolvency Act 1986,
      termination-statement resolution" means a resolution approving the terms of a termination statement (within the meaning of section 44), and
      winding-up" resolution means a resolution for voluntary winding-up within the meaning of section 84 of that Act.")
Winding-up resolution.
  
Clause 41
 
  
BY THE LORD CHANCELLOR
 
     Page 19, line 8, after ("resolution") insert ("and a termination-statement resolution") 
     Page 19, line 10, at end insert ("under section 91 of the Insolvency Act 1986.") 
     Page 19, line 11, leave out ("commonhold association may") and insert ("liquidator shall") 
  
BY THE LORD KINGSLAND
 
     Page 19, line 11, leave out ("may") and insert ("shall") 
  
BY THE LORD CHANCELLOR
 
     Page 19, line 13, at end insert--
        ("(  ) If the liquidator fails to make a termination application within the period specified in subsection (3) a termination application may be made by--
      (a)  a unit-holder, or
      (b)  a person falling within a class prescribed for the purposes of this subsection.")
 
     Page 19, line 14, leave out subsections (3) and (4) 
  
BY THE LORD KINGSLAND
 
     Page 19, line 17, at end insert ("and qualified to act as an Insolvency Practitioner in relation to the commonhold association in accordance with section 230 thereof") 
     Page 19, line 17, at end insert--
        ("(5)  Where a resolution is passed and a liquidator appointed by a commonhold association under this section or section 42, then as soon as practicable after his appointment, the liquidator shall notify the Registrar of his appointment.")
 
     Leave out Clause 41 
  
Clause 42
 
  
BY THE LORD CHANCELLOR
 
     Page 19, line 19, after ("resolution") insert ("and a termination-statement resolution") 
     Page 19, line 21, at end insert ("under section 91 of the Insolvency Act 1986.") 
     Page 19, line 22, leave out ("commonhold association may") and insert ("liquidator shall") 
  
BY THE LORD KINGSLAND
 
     Page 19, line 22, leave out ("may") and insert ("shall") 
     Page 19, line 24, leave out paragraph (a) and insert--
      ("(a)  whether, and subject to what terms and conditions, a termination application may be made by the commonhold association, including the time within which such an application shall be made, and")
 
     Page 19, line 28, leave out subsection (3) 
  
BY THE LORD CHANCELLOR
 
     Page 19, line 28, leave out ("commonhold association may") and insert ("liquidator shall")
        ("(  ) If the liquidator fails to make an application under subsection (2) or (3) within the period specified in that subsection an application of the same kind may be made by--
      (a)  a unit-holder, or
      (b)  a person falling within a class prescribed for the purposes of this subsection.")
 
  
BY THE LORD KINGSLAND
 
     Page 19, line 31, leave out subsection (4) 
  
BY THE LORD CHANCELLOR
 
     Page 19, line 31, leave out subsection (4) 
  
BY THE LORD KINGSLAND
 
     Page 19, line 33, leave out paragraph (a) 
     Page 19, line 34, leave out paragraph (b) 
     Leave out Clause 42 
  
Clause 43
 
  
BY THE LORD KINGSLAND
 
     Page 19, line 38, after ("be") insert ("registered as") 
     Page 19, line 40, at end insert--
        ("(  )  A termination statement must state--
      (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 are to be distributed.")
 
     Leave out Clause 43 
  
Clause 44
 
  
BY THE LORD KINGSLAND
 
     Page 20, line 1, leave out subsection (1) 
     Page 20, line 2, leave out paragraph (a) 
     Page 20, line 5, leave out paragraph (b) 
     Page 20, line 6, leave out subsection (2) and insert--
        ("(2)  Where a commonhold community statement makes provision with respect to the making or content of a termination statement or as to the rights or the determination of the rights of unit-holders in the event of all the land to which the statement relates ceasing to be commonhold land, then the proposals for the transfer of the commonhold land following acquisition of the freehold estate must comply with such provision and the termination statement shall contain a statement to the effect that the proposals set out therein do so comply.")
 
     Page 20, line 12, leave out subsection (3) 
     Page 20, line 14, leave out subsection (4) 
     Page 20, line 18, leave out subsection (5) 
     Leave out Clause 44 
  
Clause 45
 
  
BY THE LORD KINGSLAND
 
     Leave out Clause 45 
     Page 20, line 22, leave out subsection (2) 
  
BY THE LORD CHANCELLOR
 
     Page 20, leave out lines 23 and 24 and insert--
        ("(3)  In the case of a termination application made under section 41 the liquidator shall either-")
 
  
BY THE LORD KINGSLAND
 
     Page 20, line 23, leave out subsection (3) and insert--
        ("(3)  The termination statement submitted with the termination application shall include a statement by the Liquidator confirming that he has considered the statement and either--
      (a)  that he is content with the statement, or
      (b)  (save where the terms of the Termination Statement have been the subject of a direction of the court pursuant to clause 42 hereof) that he is not content with the statement and proposes to apply to the court under section 112 of the Insolvency Act 1986 to determine the terms of the termination statement.")
 
  
BY THE LORD CHANCELLOR
 
     Page 20, line 25, leave out ("statement") and insert ("termination statement submitted with the termination application") 
  
BY THE LORD KINGSLAND
 
     Page 20, line 30, leave out ("by virtue of subsection 3(b)") and insert ("under section 112 of the Insolvency Act 1986 as to the terms of the termination statement") 
     Page 20, line 33, leave out subsection (6) 
  
BY THE LORD CHANCELLOR
 
     Page 20, line 34, at end insert--
        ("(  ) In this section a reference to the liquidator is a reference--
      (a)  to the person who is appointed as liquidator under section 91 of the Insolvency Act 1986, or
      (b)  in the case of a members' voluntary winding up which becomes a creditors' voluntary winding up by virtue of sections 95 and 96 of that Act, to the person acting as liquidator in accordance with section 100 of that Act.")
 
  
Clause 46
 
  
BY THE LORD CHANCELLOR
 
     Page 20, line 35, at end insert ("a termination application is made under section 41 and-") 
     Page 20, line 39, at end insert--
        ("(  ) This section also applies where a termination application is made under section 42.")
 
  
BY THE LORD KINGSLAND
 
     Page 20, line 42, at end insert ("and the land shall cease to be registered as commonhold land") 
     Leave out Clause 46 
 
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