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Right to Manage Companies

I have today published a consultation paper that proposes new prescribed articles for Right to Manage (RTM) Companies. The Commonhold and Leasehold Reform Act 2002 introduced a right for long leaseholders to take over the management of the premises containing their flats without proving any fault on the part of their landlord. Prescribed memorandum and articles of association were provided to govern the operation of these companies. These reflected current company law requirements. With the changes that are being made by the Companies Act 2006 there is now a need for these prescribed documents to be updated for RTM companies that are incorporated on or after 1 October 2009. This is to ensure consistency between the requirements of these RTM companies and other companies. The consultation seeks views on the proposed updated company articles and will run for seven weeks until 16 August 2009. The Government would welcome responses to their proposals up until that date. Copies of the consultation document have been placed in the Library of the House.