Resident Management Companies RMC - Revision history

Editor at 07:44, 7 February 2025

2025-02-07T07:44:31Z

← Older revision		Revision as of 07:44, 7 February 2025
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	* Break clauses in leases.		* Break clauses in leases.
−	* Building Safety ~~Index~~	+	* Building Safety wiki.
	* Commonhold.		* Commonhold.
	* Community right to bid.		* Community right to bid.

Editor at 16:48, 6 February 2025

2025-02-06T16:48:36Z

← Older revision		Revision as of 16:48, 6 February 2025
Line 20:		Line 20:

	* Break clauses in leases.		* Break clauses in leases.
		+	* Building Safety Index
	* Commonhold.		* Commonhold.
	* Community right to bid.		* Community right to bid.

Editor at 16:42, 6 February 2025

2025-02-06T16:42:15Z

← Older revision		Revision as of 16:42, 6 February 2025
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−	A residents management company is a property management company ~~which~~ is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation ~~who's~~ task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security. Commonly the shareholders of the RMC are also leaseholders of their properties, effectively managing the property on behalf of the freeholder, usually with a board of directors made up of residents who work on a voluntary basis.	+	A residents management company is a property management company that is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation whose task is the management and maintenance of a building, the communal areas, the condition of walls, windows, roofs, etc., as well as safety and security. Commonly the shareholders of the RMC are also leaseholders of their properties, effectively managing the property on behalf of the freeholder, usually with a board of directors made up of residents who work on a voluntary basis.

−	The role a resident shareholder in the RMC and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions~~, the~~ RMC, in turn has responsibilities towards all leaseholders. This responsibility of the RMC is either via being a party to the leases, with responsibilities or covenants set out, or ~~the~~ stated as being directly responsible for performing the landlord or freeholder covenants that relate management of the property.	+	The role of a resident shareholder in the RMC and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions. The RMC, in turn, has responsibilities towards all leaseholders. This responsibility of the RMC is either via being a party to the leases, with responsibilities or covenants set out, or stated as being directly responsible for performing the landlord or freeholder covenants that relate to the management of the property.

−	The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This ~~maybe~~ pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) ~~Company~~ must be a company limited by guarantee, with specific articles of association~~, in~~ the ~~RMT~~ company the leaseholders are company members rather than shareholders as is the case with an RMC.	+	The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g., tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This may be pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with the current management arrangements of the building. A Right to Manage (RTM) company must be a company limited by guarantee, with specific articles of association. In the RTM company, the leaseholders are company members rather than shareholders, as is the case with an RMC.

−	it is important to note that under the Building Safety Act 2022 both RMCs and RTMs building safety responsibilities, as they are considered accountable persons ~~within~~ legal obligations to repair any common parts of the building.~~relevant~~, especially where a building is higher risk (18 ~~metres~~ in height or seven ~~storeys~~ and with at least two residential units). It is the organisation itself that is accountable for building safety, not the individual shareholders or members, however the directors of the company are responsible and in certain may be held jointly and personally liable. As it is unlikely that any of the company directors have an expertise in the area of building safety it is probable that they will seek professional support and advice. Not seeking the support of a competent person, not doing anything or doing it themselves, when the expertise clearly doesn't exist in the organisation could be considered as negligence and lead to prosecution.	+	It is important to note that under the Building Safety Act 2022, both RMCs and RTMs have building safety responsibilities, as they are considered accountable persons (APs) and potentially principal accountable persons (PAPs) with legal obligations to repair any common parts of the building. Relevant, especially where a building is higher risk (18 meters in height or seven stories and with at least two residential units).

−	~~Storage and maintenance of~~ building ~~information: All PAPs must keep a digital record~~ of ~~certain information about their building – how it was designed~~ and ~~built~~, ~~how it~~ may ~~have changed~~ and ~~how~~ it is ~~maintained and managed.<br />~~	+	It is the organisation itself that is accountable for building safety, not the individual shareholders or members; however, the directors of the company are APs, responsible and, in certain circumstances, may be held jointly and personally liable. As it is unlikely that any of the company directors have expertise in the area of building safety, it is probable that they will seek professional support and advice and appoint a PAP. Not seeking the support of a competent person, not doing anything, or doing it themselves when the expertise clearly doesn't exist in the organisation could be considered as negligence and lead to prosecution.
−	~~This should include information on all aspects~~ of ~~fire and structural~~ safety, ~~evacuation, complaints~~ and ~~incidents.<br />~~	+
−	~~The information may include documents, drawings, reports~~ and ~~other records~~. ~~Collectively these form~~ the ~~‘Golden Thread’~~ of ~~information~~, or the ~~‘Safety Case’~~.	+

−	Safety ~~Case Reporting~~: All PAPs must prepare a ‘safety case report’ for their building, which identifies building safety risks (the risk of fire spread in the building and structural failure) and describes how they are being managed.<br />	+	The requirements of all PAPs under the Building Safety Act include:
−	The safety case report summarises the building safety information or ‘safety case’ for the high-rise residential building and shows the PAP is taking all reasonable steps to manage identified building safety risks.	+

−	Engaging with residents: PAPs should engage with residents about safety issues. They must prepare a ~~strat~~	+	* Storage and maintenance of building information: How it was designed and built, how it may have changed, and how it is maintained and managed. With information on all aspects of fire and structural safety, evacuation, complaints, and incidents, including documents, drawings, reports, and other records. The ‘Golden Thread’ of information, or the ‘Safety Case.’.
		+	* Safety Case Reporting: Preparation of a ‘safety case report’ for their building, which identifies building safety risks (the risk of fire spread in the building and structural failure) and describes how they are being managed. The safety case report summarises the building safety information, or ‘safety case,’ for the high-rise residential building and shows the PAP is taking all reasonable steps to manage identified building safety risks.
		+	* Engaging with residents: PAPs should engage with residents about safety issues. They must prepare a residents engagement strategy whereby residents and owners of residential units in the building can participate in making building safety decisions. This will provide residents with access to more information about the safety of their building, help them to know what changes are being made to their building, how they are consulted on the changes, and how it will impact them. It will also provide effective routes for resolution.

−	For ~~more~~ information ~~about the impact of the~~ building safety ~~action on~~ RMCs and	+	For further information on related topics follow these links [https://buildingsafety.campaign.gov.uk/building-safety-regulator-making-buildings-safer/building-safety-regulator-news/resident-management-companies-rmcs-in-high-rise-buildings/ Resident Management Companies (RMCs) in high-rise buildings], [https://buildingsafety.campaign.gov.uk/building-safety-regulator-making-buildings-safer/roles-and-responsibilities-for-high-rise-residential-buildings/role-of-accountable-persons-for-high-rise-residential-buildings/ The role and responsibilities of accountable persons and principal accountable persons], [https://companieshouse.blog.gov.uk/2020/11/12/becoming-a-director-or-member-of-a-residents-management-company/ Becoming a director or member of a residents’ management compan]y, and [https://www.gov.uk/government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations Guidance About flat management companies, RTM companies and commonhold associations]

−	[[Category:~~Articles_needing_more_work~~]]	+	= Related articles on Designing Buildings =
		+
		+	* Break clauses in leases.
		+	* Commonhold.
		+	* Community right to bid.
		+	* Community right to build.
		+	* Community right to challenge.
		+	* Community right to reclaim land.
		+	* Flat definition.
		+	* Freehold.
		+	* Lease Negotiations - Tenants Checklist.
		+	* Leasehold.
		+	* Leasehold enfranchisement.
		+	* Localism act.
		+	* Rent review.
		+	* Rent-free period.
		+	* Right to build.
		+	* Right to contest.
		+	* Right to manage for leaseholders
		+
		+	[[Category:DCN_Commentary]] [[Category:DCN_Definition]] [[Category:DCN_Group]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Standard]] [[Category:Definitions]] [[Category:Publications_/_reports]] [[Category:Property_law]] [[Category:Standards_/_measurements]]

Editor at 14:01, 6 February 2025

2025-02-06T14:01:55Z

← Older revision		Revision as of 14:01, 6 February 2025
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	The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This maybe pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) Company must be a company limited by guarantee, with specific articles of association, in the RMT company the leaseholders are company members rather than shareholders as is the case with an RMC.		The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This maybe pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) Company must be a company limited by guarantee, with specific articles of association, in the RMT company the leaseholders are company members rather than shareholders as is the case with an RMC.

−	it is important to note that under the Building Safety Act 2022 both RMCs and RTMs building safety responsibilities, as they are considered accountable persons within legal obligations to repair any common parts of the building.relevant, especially where a building is higher risk (18 metres in height or seven storeys and with at least two residential units). It is the organisation itself that is accountable for building safety, not the individual shareholders or members, however the directors of the company are responsible and in certain may be held jointly and personally liable. As it is unlikely that any of the company directors have an expertise in the area of building safety it is probable that they will seek professional support and advice. Not seeking the support of a competent person, not doing anything or doing it themselves, when the expertise clearly doesn't exist in the organisation could be ~~consodered~~ as negligence and lead to ~~presecution~~.	+	it is important to note that under the Building Safety Act 2022 both RMCs and RTMs building safety responsibilities, as they are considered accountable persons within legal obligations to repair any common parts of the building.relevant, especially where a building is higher risk (18 metres in height or seven storeys and with at least two residential units). It is the organisation itself that is accountable for building safety, not the individual shareholders or members, however the directors of the company are responsible and in certain may be held jointly and personally liable. As it is unlikely that any of the company directors have an expertise in the area of building safety it is probable that they will seek professional support and advice. Not seeking the support of a competent person, not doing anything or doing it themselves, when the expertise clearly doesn't exist in the organisation could be considered as negligence and lead to prosecution.
		+
		+	Storage and maintenance of building information: All PAPs must keep a digital record of certain information about their building – how it was designed and built, how it may have changed and how it is maintained and managed.<br />
		+	This should include information on all aspects of fire and structural safety, evacuation, complaints and incidents.<br />
		+	The information may include documents, drawings, reports and other records. Collectively these form the ‘Golden Thread’ of information, or the ‘Safety Case’.
		+
		+	Safety Case Reporting: All PAPs must prepare a ‘safety case report’ for their building, which identifies building safety risks (the risk of fire spread in the building and structural failure) and describes how they are being managed.<br />
		+	The safety case report summarises the building safety information or ‘safety case’ for the high-rise residential building and shows the PAP is taking all reasonable steps to manage identified building safety risks.
		+
		+	Engaging with residents: PAPs should engage with residents about safety issues. They must prepare a strat

	For more information about the impact of the building safety action on RMCs and		For more information about the impact of the building safety action on RMCs and

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 13:59, 6 February 2025

2025-02-06T13:59:59Z

← Older revision		Revision as of 13:59, 6 February 2025
Line 5:		Line 5:
	The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This maybe pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) Company must be a company limited by guarantee, with specific articles of association, in the RMT company the leaseholders are company members rather than shareholders as is the case with an RMC.		The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This maybe pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) Company must be a company limited by guarantee, with specific articles of association, in the RMT company the leaseholders are company members rather than shareholders as is the case with an RMC.

−	it is important to note that under the Building Safety Act 2022	+	it is important to note that under the Building Safety Act 2022 both RMCs and RTMs building safety responsibilities, as they are considered accountable persons within legal obligations to repair any common parts of the building.relevant, especially where a building is higher risk (18 metres in height or seven storeys and with at least two residential units). It is the organisation itself that is accountable for building safety, not the individual shareholders or members, however the directors of the company are responsible and in certain may be held jointly and personally liable. As it is unlikely that any of the company directors have an expertise in the area of building safety it is probable that they will seek professional support and advice. Not seeking the support of a competent person, not doing anything or doing it themselves, when the expertise clearly doesn't exist in the organisation could be consodered as negligence and lead to presecution.
		+
		+	For more information about the impact of the building safety action on RMCs and

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 09:15, 6 February 2025

2025-02-06T09:15:55Z

← Older revision		Revision as of 09:15, 6 February 2025
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	A residents management company is a property management company which is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation who's task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security. Commonly the shareholders of the RMC are also leaseholders of their properties, effectively managing the property on behalf of the freeholder, usually with a board of directors made up of residents who work on a voluntary basis.		A residents management company is a property management company which is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation who's task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security. Commonly the shareholders of the RMC are also leaseholders of their properties, effectively managing the property on behalf of the freeholder, usually with a board of directors made up of residents who work on a voluntary basis.

−	The role a ~~residenrt~~ shareholder in the ~~company~~ and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility ~~is either with~~ the RMC being a party to the leases, with responsibilities or covenants set out, or the ~~RMC is~~ stated as being directly responsible for performing the ~~landlord’s~~ covenants that relate management of the property.	+	The role a resident shareholder in the RMC and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC, in turn has responsibilities towards all leaseholders. This responsibility of the RMC is either via being a party to the leases, with responsibilities or covenants set out, or the stated as being directly responsible for performing the landlord or freeholder covenants that relate management of the property.

−	~~When someone sells their flat, their share will pass~~ to the ~~new owner~~. ~~Residents can become directors~~ of ~~their RMC~~ (~~usually~~ on ~~a volunteer basis~~) ~~if they~~ are ~~nominated~~ by ~~other~~ shareholders.	+	The Commonhold and Leasehold Reform Act of 2002 sets out procedures for exercising the right to manage and for the subsequent management of buildings. It included safeguards to protect the legitimate interests of a landlord and any other occupiers of a building (e.g. tenants on short residential leases and commercial occupiers). It also established what is known as the Right to Manage (RTM), a legal process that enables leaseholders to acquire the right to take over the management of a freehold. This maybe pursued by leaseholders where there is no RMC in place or where the leaseholders of a property are dissatisfied with current management arrangements of the building. A Right to Manage (RTM) Company must be a company limited by guarantee, with specific articles of association, in the RMT company the leaseholders are company members rather than shareholders as is the case with an RMC.

−	~~The resident management company directors’ responsibilities are to manage the property on behalf of the freeholder and have control over service charge expenditure. RMCs do not own the freehold.~~	+	it is important to note that under the Building Safety Act 2022
−		+
−	~~role as a shareholder in the company and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder~~ is ~~generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility is either with the RMC being a party~~ to ~~the leases, with responsibilities or covenants set out, or the RMC is stated as being directly responsible for performing the landlord’s covenants~~ that ~~relate management of~~ the ~~property.~~	+
−		+
−	~~RMCs where allowed for in the Commonhold and Leasehold Reform~~ Act ~~of 2002~~	+
−		+
−	~~2002 CHAPTER 15~~	+
−		+
−	~~An Act to make provision about commonhold land and to amend the law about leasehold property. Icommon for a block of flats to be owned or managed by a company made up of the leaseholders.~~	+
−		+
−	In this setup, each resident becomes a shareholder in the company, which oversees the freehold of the entire property. Since each flat owner holds one share, ownership is evenly distributed. When a resident sells their flat, their share automatically transfers to the new owner, ensuring continuity in building management.	+
−		+
−	The company typically takes responsibility for communal areas, including grounds, walls, roofs, hallways, gates, and security features. It may also manage service charge collection, coordinate services such as cleaning and decorating, and handle expenses like insurance, maintenance costs, professional fees, and taxes.	+

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 08:36, 6 February 2025

2025-02-06T08:36:23Z

← Older revision		Revision as of 08:36, 6 February 2025
Line 1:		Line 1:
−	A residents management company is a property management company which is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation who's task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security.	+	A residents management company is a property management company which is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation who's task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security. Commonly the shareholders of the RMC are also leaseholders of their properties, effectively managing the property on behalf of the freeholder, usually with a board of directors made up of residents who work on a voluntary basis.

−	~~It is quite common for the shareholders of the RMC to also be leaseholders, although this does not have to be the case, it is important that the~~ role as a shareholder in the company and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility is either with the RMC being a party to the leases, with responsibilities or covenants set out, or the RMC is stated as being directly responsible for performing the landlord’s covenants that relate management of the property.	+	The role a residenrt shareholder in the company and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility is either with the RMC being a party to the leases, with responsibilities or covenants set out, or the RMC is stated as being directly responsible for performing the landlord’s covenants that relate management of the property.

−	Commonhold and Leasehold Reform Act 2002	+	When someone sells their flat, their share will pass to the new owner. Residents can become directors of their RMC (usually on a volunteer basis) if they are nominated by other shareholders.
		+
		+	The resident management company directors’ responsibilities are to manage the property on behalf of the freeholder and have control over service charge expenditure. RMCs do not own the freehold.
		+
		+	role as a shareholder in the company and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility is either with the RMC being a party to the leases, with responsibilities or covenants set out, or the RMC is stated as being directly responsible for performing the landlord’s covenants that relate management of the property.
		+
		+	RMCs where allowed for in the Commonhold and Leasehold Reform Act of 2002

	2002 CHAPTER 15		2002 CHAPTER 15

Editor at 08:28, 6 February 2025

2025-02-06T08:28:58Z

← Older revision		Revision as of 08:28, 6 February 2025
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−	xx	+	A residents management company is a property management company which is set up by the residents of a building or block of flats (also referred to as a flat management company). The company is a non-profit organisation who's task is the management and maintenance of a building, the communal areas, condition of walls, windows, roofs etc as well as safety and security.
		+
		+	It is quite common for the shareholders of the RMC to also be leaseholders, although this does not have to be the case, it is important that the role as a shareholder in the company and as a leaseholder of a property are different. A shareholder in the company has the right to vote on decisions made by the RMC, whilst a leaseholder is generally bound by those decisions, the RMC in turn has responsibilities towards all leaseholders. This responsibility is either with the RMC being a party to the leases, with responsibilities or covenants set out, or the RMC is stated as being directly responsible for performing the landlord’s covenants that relate management of the property.
		+
		+	Commonhold and Leasehold Reform Act 2002
		+
		+	2002 CHAPTER 15
		+
		+	An Act to make provision about commonhold land and to amend the law about leasehold property. Icommon for a block of flats to be owned or managed by a company made up of the leaseholders.
		+
		+	In this setup, each resident becomes a shareholder in the company, which oversees the freehold of the entire property. Since each flat owner holds one share, ownership is evenly distributed. When a resident sells their flat, their share automatically transfers to the new owner, ensuring continuity in building management.
		+
		+	The company typically takes responsibility for communal areas, including grounds, walls, roofs, hallways, gates, and security features. It may also manage service charge collection, coordinate services such as cleaning and decorating, and handle expenses like insurance, maintenance costs, professional fees, and taxes.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor: moved Resident Management Companies to Resident Management Companies RMC

2025-01-29T07:17:05Z

moved Resident Management Companies to Resident Management Companies RMC

← Older revision

Revision as of 07:17, 29 January 2025

Editor: Created page with "xx Category:Articles_needing_more_work "

2025-01-29T07:16:46Z

Created page with "xx Category:Articles_needing_more_work "

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