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Part 1E+WCommonhold

Commonhold associationE+W

34 ConstitutionE+W

[F1(1)A commonhold association is a private company limited by guarantee—

(a)the articles of which state that an object of the company is to exercise the functions of a commonhold association in relation to specified commonhold land, and

(b)the statement of guarantee of which specifies £1 as the amount of the contribution required from each member in the event of the company being wound up.]

(2)Schedule 3 (which makes provision about the constitution of a commonhold association) shall have effect.

35 Duty to manageE+W

(1)The directors of a commonhold association shall exercise their powers so as to permit or facilitate so far as possible—

(a)the exercise by each unit-holder of his rights, and

(b)the enjoyment by each unit-holder of the freehold estate in his unit.

(2)The directors of a commonhold association shall, in particular, use any right, power or procedure conferred or created by virtue of section 37 for the purpose of preventing, remedying or curtailing a failure on the part of a unit-holder to comply with a requirement or duty imposed on him by virtue of the commonhold community statement or a provision of this Part.

(3)But in respect of a particular failure on the part of a unit-holder (the “defaulter”) the directors of a commonhold association—

(a)need not take action if they reasonably think that inaction is in the best interests of establishing or maintaining harmonious relationships between all the unit-holders, and that it will not cause any unit-holder (other than the defaulter) significant loss or significant disadvantage, and

(b)shall have regard to the desirability of using arbitration, mediation or conciliation procedures (including referral under a scheme approved under section 42) instead of legal proceedings wherever possible.

(4)A reference in this section to a unit-holder includes a reference to a tenant of a unit.

36 VotingE+W

(1)This section applies in relation to any provision of this Part (a “voting provision”) which refers to the passing of a resolution by a commonhold association.

(2)A voting provision is satisfied only if every member is given an opportunity to vote in accordance with any relevant provision of the [F2articles of association] or the commonhold community statement.

(3)A vote is cast for the purposes of a voting provision whether it is cast in person or in accordance with a provision which—

(a)provides for voting by post, by proxy or in some other manner, and

(b)is contained in the [F2articles of association] or the commonhold community statement.

(4)A resolution is passed unanimously if every member who casts a vote votes in favour.