On 30 September 2003 the right to manage provisions contained in the Commonhold and Leasehold Reform Act 2002 (“the Act”) came into force.
The above-mentioned right to manage provisions created a new right to enable leaseholders of flats to take over the management of their building without the need to prove shortcomings on the part of the landlord and without the need to pay compensation for the exercise of the right. The landlord is, however, entitled to reimbursement of his reasonable costs in connection with the right to manage.
The right to manage provisions brought into force by the Act must be exercised through a Right to Manage (RTM) Company. The Act defines an RTM company as a private company limited by guarantee whose Memorandum of Association states that its object, or one of its objects, is the acquisition and exercise of the right to manage the premises, which must be specified in the Memorandum and Articles of Association.
Companies (Tables A to F) Regulations 1985 do not apply to RTM companies. A model set of Memorandum and Articles for RTM companies is contained in The RTM Companies (Memorandum and Articles of Association) (England) Regulations 2003.
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