Share Block Schemes Flashcards
1
Q
Properties of Share Block
A
- Under the share block scheme, a person acquires a share in a company entitling him to use and occupy a specific apartment (flat or office) in a building owned or leased by the company
- The company operating the share block scheme is called a share block company
- A shareholder does not become the owner of the apartment which he is entitled to occupy; he merely has a right to use and occupy it
- His rights are regulated by the constitutionof the share
block company and by a use agreement
memorandum and articles of association
2
Q
Share block Tranfers
A
- Must follow the memorandums and articles relating to the company
- This requires the consent of the share block company.
- The purchaser not only acquires the shares in the share block company but also takes over the seller’s rights and duties in the use agreement
Share Blocks Control Act; Companies Act 2008
3
Q
Share Block Funds
A
- Every shreblock company must have a levy fund which every shareholder/member contributes to
- The amount of the contribution is fixed in relation to the number of shares held by the shareholder
- The funds from the levy must be put towards teh upkeep, control and management of a property
- All collected funds should be entrusted to an EA or Attorney, or held in a seperate bank account/building society
4
Q
Share Block Pre-emptive Rights
A
- A portion of the building is wholly or partially let for residential purpose
and - The share concerned is to be offered for sale, or is in fact sold, for the first time. This means that if a tenant vacates the premises after having declined to exercise his pre-emptive right and a new tenant takes his place, the share may be sold on the open market without having to first offer it to the new tenant.
5
Q
Selling Share Blocks to the Public
A
- Any proposed purchaser must enter into a contract
- Acopy of the relevant contract must be available for inspection free of charge at an address indicated in the statement.
- If a share block is offered to a specific individual only then the 2nd requirement need not be complied with
