Moved by
Lord Best
45: After Clause 72, insert the following new Clause—
“Appointment of third parties
(1) This section applies where—
(a) a RTM company within the meaning of section 113, Commonhold and Leasehold Reform Act 2002,
(b) a body corporate of whatever description where the majority of the shares are held by leaseholders of dwellings, or
(c) a body corporate of whatever description which is limited by guarantee and the members of that company are also leaseholders of dwellings,
is either the accountable person or principal accountable person.
(2) Where this section applies, notwithstanding any provisions of the Memorandum or Articles of Association or any rule of law to the contrary, the company may appoint a third party to discharge all the functions of the accountable person or the principal accountable person who will assume all duties, powers, liabilities and penalties under this Act in place of the company, and this Act is to have effect as though references to the accountable person or principal accountable person were references to the third party appointed under this section.
(3) If such a person is appointed then the company is empowered to re-charge and apportion the costs charged by such a person as if they were a service charge under the leases of the dwellings.
(4) Such charges will, for all purposes, be deemed to be service charges within the meaning of section 18 of the Landlord and Tenant Act 1985, save that the provisions of sections 20 and 20ZA of the Landlord and Tenant Act 1985 do not apply.
(5) The Secretary of State may by regulations impose conditions which must be satisfied before an appointment can be made under subsection (2).
(6) Without prejudice to the generality of subsection (5), those regulations may include—
(a) provision for a minimum level of professional qualification to be held by the third party,
(b) provision for minimum levels of professional indemnity provision.”
Member’s explanatory statement
This provision would enable leaseholder-owned or controlled companies to appoint an external professional to discharge the functions of the Accountable Person or Principal Accountable Person and for the costs of the same to be recoverable (and regulated) as if they were a service charge under the lease.