HCERA OR HCEL – WHAT’S THE DIFFERENCE?

As the Residents Association HCERA is not incorporated, it cannot be the legal owner of property, so the solution decided upon was that the Residents Association set up a company, Herbert Collins Estates Limited to acquire the freehold ownership of the Estate, which it did. The Company therefore has all the rights and obligations that come from ownership of the property.

HCEL is a company limited by guarantee and runs according to its Articles of Association. These are the standard ones modified to take account of its particular circumstances. Company membership is restricted to owners of property, or those living, on the Estate (see the Articles for exact details). The day-to-day running is by the Directors and ultimate control by a General Meeting of Members.

Similarly HCERA is has it “Rules”, the day-to-day running is by the Committee and ultimate control by a General Meeting. The HCERA rules list four objects of the Association and the fist one is “To advance and protect the interests of the Residents and preserve the amenities of the district.” There is also the promotion of cultural and social activities. HCEL is more limited “It is an object of the company to exercise the rights and powers granted by ownership of the land aforementioned in a manner that preserves or enhances the amenity of the area.”

HCERA and HCEL run separately, but each AGM of the Association may appoint one director to the Company. It was also recognized that the Residents Association might need to financially support the Company “The Company may seek from the Herbert Collins Estates Residents’ Association an annual donation to be raised by the Association increasing its own annual subscription.”

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