Question 1

Share Certificate

Accepted Answer

Q: One of our Residents is about to re-mortgage their property. The share certificate is in her maiden, or previously married, name. We believe from her solicitor that the mortgage will be in both her and her husband’s name now and they have stated that she will need a new certificate reflecting that the mortgage is in both names. Regardless of whose name or names are on the certificate, they are still only entitled to one vote per household. I suppose, my thought only, is that if one or other of them is not able to vote or attend a meeting, then the other has the opportunity to vote, although this I believe could be done by proxy. I suppose we would only be able to issue a new certificate with both names on it if we had proof that both names were on a new lease, which I am pretty sure is not being issued. Please could you advise to enable us to go back to the solicitor with the correct answer about issuing a new share certificate. The house is not being sold, so we do not see the relevance of a new certificate. FPRA Committee Member Bob Slee replies: According to your Articles of Association, shares in the Company are held by the owners of individual flats and the owner is defined as a person or persons who hold the lease or who subsequently have it assigned to them (i.e. who buy the lease or otherwise come into possession of it). To a degree therefore the fact that there is more than one name on a new mortgage on the property is not of itself relevant. The key factor is whose name is recorded at HM Land Registry as the owner of the lease? It would seem probable that your lessee and her husband are taking a new mortgage and are consequently becoming joint lessees on the property - this is the specific matter on which you need confirmation from their solicitor and it would be quite in order to demand that they provide you with a copy of the Land Registry title document to clearly establish the fact. Once satisfied, you may then issue a new share certificate in the names of the joint lessees (ensuring that the existing certificate is returned to you and duly cancelled). As you surmise, the new certificate would confer only one share (although jointly held) with only one vote in company business. [Submitted October 2016]

Question 2

Share Certificate

Accepted Answer

Q: One of our Residents is about to re-mortgage their property. The share certificate is in her maiden, or previously married, name. We believe from her solicitor that the mortgage will be in both her and her husband’s name now and they have stated that she will need a new certificate reflecting that the mortgage is in both names. Regardless of whose name or names are on the certificate, they are still only entitled to one vote per household. I suppose, my thought only, is that if one or other of them is not able to vote or attend a meeting, then the other has the opportunity to vote, although this I believe could be done by proxy. I suppose we would only be able to issue a new certificate with both names on it if we had proof that both names were on a new lease, which I am pretty sure is not being issued. Please could you advise to enable us to go back to the solicitor with the correct answer about issuing a new share certificate. The house is not being sold, so we do not see the relevance of a new certificate. FPRA Committee Member Bob Slee replies: According to your Articles of Association, shares in the Company are held by the owners of individual flats and the owner is defined as a person or persons who hold the lease or who subsequently have it assigned to them (i.e. who buy the lease or otherwise come into possession of it). To a degree therefore the fact that there is more than one name on a new mortgage on the property is not of itself relevant. The key factor is whose name is recorded at HM Land Registry as the owner of the lease? It would seem probable that your lessee and her husband are taking a new mortgage and are consequently becoming joint lessees on the property - this is the specific matter on which you need confirmation from their solicitor and it would be quite in order to demand that they provide you with a copy of the Land Registry title document to clearly establish the fact. Once satisfied, you may then issue a new share certificate in the names of the joint lessees (ensuring that the existing certificate is returned to you and duly cancelled). As you surmise, the new certificate would confer only one share (although jointly held) with only one vote in company business. [Submitted October 2016]

Share Certificate

Search

Articles Archive