Prospective
(1)Section 13 of the 1993 Act is amended as follows.
(2)In paragraph (b) of subsection (2), after “given by” insert “ a RTE company which has among its participating members ”.
(3)After that subsection insert—
“(2ZA)But in a case where, at the relevant date, there are only two qualifying tenants of flats contained in the premises, subsection (2)(b) is not satisfied unless both are participating members of the RTE company.”
After section 4 of the 1993 Act insert—
(1)A company is a RTE company in relation to premises if—
(a)it is a private company limited by guarantee, and
(b)its memorandum of association states that its object, or one of its objects, is the exercise of the right to collective enfranchisement with respect to the premises.
(2)But a company is not a RTE company if it is a commonhold association (within the meaning of Part 1 of the Commonhold and Leasehold Reform Act 2002).
(3)And a company is not a RTE company in relation to premises if another company which is a RTE company in relation to—
(a)the premises, or
(b)any premises containing or contained in the premises,
has given a notice under section 13 with respect to the premises, or any premises containing or contained in the premises, and the notice continues in force in accordance with subsection (11) of that section.
(1)Before the execution of a relevant conveyance to a company which is a RTE company in relation to any premises the following persons are entitled to be members of the company—
(a)qualifying tenants of flats contained in the premises, and
(b)if the company is also a RTM company which has acquired the right to manage the premises, landlords under leases of the whole or any part of the premises.
(2)In this section—
“relevant conveyance” means a conveyance of the freehold of the premises or of any premises containing or contained in the premises; and
“RTM company” has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002.
(3)On the execution of a relevant conveyance to the RTE company, any member of the company who is not a participating member ceases to be a member.
(4)In this Chapter “participating member”, in relation to a RTE company, means a person who is a member by virtue of subsection (1)(a) of this section and who—
(a)has given a participation notice to the company before the date when the company gives a notice under section 13 or during the participation period, or
(b)is a participating member by virtue of either of the following two subsections.
(5)A member who is the assignee of a lease by virtue of which a participating member was a qualifying tenant of his flat is a participating member if he has given a participation notice to the company within the period beginning with the date of the assignment and ending 28 days later (or, if earlier, on the execution of a relevant conveyance to the company).
(6)And if the personal representatives of a participating member are a member, they are a participating member if they have given a participation notice to the company at any time (before the execution of a relevant conveyance to the company).
(7)In this section “participation notice”, in relation to a member of the company, means a notice stating that he wishes to be a participating member.
(8)For the purposes of this section a participation notice given to the company during the period—
(a)beginning with the date when the company gives a notice under section 13, and
(b)ending immediately before a binding contract is entered into in pursuance of the notice under section 13,
is of no effect unless a copy of the participation notice has been given during that period to the person who (in accordance with section 9) is the reversioner in respect of the premises.
(9)For the purposes of this section “the participation period” is the period beginning with the date when the company gives a notice under section 13 and ending—
(a)six months, or such other time as the Secretary of State may by order specify, after that date, or
(b)immediately before a binding contract is entered into in pursuance of the notice under section 13,
whichever is the earlier.
(10)In this section references to assignment include an assent by personal representatives, and assignment by operation of law where the assignment is to a trustee in bankruptcy or to a mortgagee under section 89(2) of the Law of Property Act 1925 (c. 20) (foreclosure of leasehold mortgage); and references to an assignee shall be construed accordingly.
(1)The Secretary of State shall by regulations make provision about the content and form of the memorandum of association and articles of association of RTE companies.
(2)A RTE company may adopt provisions of the regulations for its memorandum or articles.
(3)The regulations may include provision which is to have effect for a RTE company whether or not it is adopted by the company.
(4)A provision of the memorandum or articles of a RTE company has no effect to the extent that it is inconsistent with the regulations.
(5)The regulations have effect in relation to a memorandum or articles—
(a)irrespective of the date of the memorandum or articles, but
(b)subject to any transitional provisions of the regulations.
(6)The following provisions of the Companies Act 1985 (c. 6) do not apply to a RTE company—
(a)sections 2(7) and 3 (memorandum), and
(b)section 8 (articles).”
Commencement Information
I1S. 122 partly in force; s. 122 not in force at Royal Assent, see s. 181(1); s. 122 in force for specified purposes at 26.7.2002 for E. by S.I. 2002/1912, art. 2(c); s. 122 in force for specified purposes at 1.1.2003 for W. by S.I. 2002/3012, art. 2(c)
Prospective
(1)After section 12 of the 1993 Act insert—
(1)Before making a claim to exercise the right to collective enfranchisement with respect to any premises, a RTE company must give notice to each person who at the time when the notice is given—
(a)is the qualifying tenant of a flat contained in the premises, but
(b)neither is nor has agreed to become a participating member of the RTE company.
(2)A notice given under this section (a “notice of invitation to participate”) must—
(a)state that the RTE company intends to exercise the right to collective enfranchisement with respect to the premises,
(b)state the names of the participating members of the RTE company,
(c)explain the rights and obligations of the members of the RTE company with respect to the exercise of the right (including their rights and obligations in relation to meeting the price payable in respect of the freehold, and any other interests to be acquired in pursuance of this Chapter, and associated costs),
(d)include an estimate of that price and those costs, and
(e)invite the recipients of the notice to become participating members of the RTE company.
(3)A notice of invitation to participate must either—
(a)be accompanied by a copy of the memorandum of association and articles of association of the RTE company, or
(b)include a statement about inspection and copying of the memorandum of association and articles of association of the RTE company.
(4)A statement under subsection (3)(b) must—
(a)specify a place (in England or Wales) at which the memorandum of association and articles of association may be inspected,
(b)specify as the times at which they may be inspected periods of at least two hours on each of at least three days (including a Saturday or Sunday or both) within the seven days beginning with the day following that on which the notice is given,
(c)specify a place (in England or Wales) at which, at any time within those seven days, a copy of the memorandum of association and articles of association may be ordered, and
(d)specify a fee for the provision of an ordered copy, not exceeding the reasonable cost of providing it.
(5)Where a notice given to a person includes a statement under subsection (3)(b), the notice is to be treated as not having been given to him if he is not allowed to undertake an inspection, or is not provided with a copy, in accordance with the statement.
(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.”
(2)In section 13 of the 1993 Act, after subsection (2ZA) (inserted by section 121(3)) insert—
“(2ZB)The initial notice may not be given unless each person required to be given a notice of invitation to participate has been given such a notice at least 14 days before.”
Prospective
Schedule 8 (amendments consequential on sections 121 to 123) has effect.
(1)In subsection (1) of section 17 of the 1993 Act (access by reversioner or other relevant landlord for purposes of valuation), insert at the end “ or if it is reasonable in connection with any other matter arising out of the claim to exercise the right to collective enfranchisement ”.
(2)For the sidenote of that section substitute “Rights of access.”
Commencement Information
I2S. 125 wholly in force at 1.1.2003; s. 125 not in force at Royal Assent, see s. 181(1); s. 125 in force at 26.7.2002 for E. by S.I. 2002/1912, art. 2(b)(i) (subject to transitional provisions and savings in Sch. 2); s. 125 in force at 1.1.2003 for W. by S.I. 2002/3012, art. 2(b)(i) (subject to transitional provisions and savings in Sch. 2)