The RTM Companies (Model Articles) (Wales) (Amendment) Regulations 2025

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the RTM Companies (Model Articles) (Wales) Regulations 2011 (S.I. 2011/2680 (W. 286)) (“the 2011 Regulations”), which apply to RTM companies that exercise the right to manage premises in Wales. They amend the content of the articles of association of an RTM company. The amendments are made partly in consequence of section 49 of the Leasehold and Freehold Reform Act 2024 (c. 22) (“the 2024 Act”), which increases the non-residential limit on right to manage claims.

Regulation 2 amends article 1 of Schedule 1 (articles of association of an RTM company) to specify that “lease” means a long lease within the meaning of sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002 (c. 15) and to correct the definition of “qualifying tenant”. Regulation 2 also amends article 33 which relates to voting rights. It ensures that a landlord who is a member of the RTM company who would not otherwise have a vote is allocated a vote if that landlord is also the freeholder of the premises. Finally, it provides that the votes of the landlords under leases of the whole or any part of the premises are capped at one third of the votes exercisable by qualifying tenants.

Regulation 3 amends articles 1 and 33 of Schedule 2 (erthyglau cymdeithasu cwmni RTM) to the same effect as that of regulation 2.

By virtue of regulation 2(2) of the 2011 Regulations, the amendments have effect for an RTM company whether or not they are adopted by the company.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff CF10 3NQ and on the Welsh Government’s website at www.gov.wales.