MANAGEMENT COPRPORATION-From the Sun
The management corporation is the medium in which the proprietors of strata parcels in a
strata development would eventually control the management of the strata scheme.
Pursuant to the Strata Titles Act 198 !the Act"# the management corporation of a strata
development would come into e$istence upon the opening of the strata register which
would to the man in the street mean when the strata titles of a strata development are
issued. The management corporation is a statutorily-created %ody corporate having
perpetual succession and a common seal. &eing a %ody corporate# the management
corporation may sue or %e sued. The management corporation will %e 'nown %y the name
appearing in the %oo' of strata register of the strata development.
(pon coming into e$istence# the management corporation would %e constituted %y all
parcel proprietors of the strata development. This means that initially and upon its
coming into e$istence# the management corporation would %e inevita%ly made up of the
original proprietor of the land upon which the strata development is erected.
The importance and relevance of the management corporation is that upon coming into
e$istence# the management corporation would %ecome the proprietor of the common
property of the strata development and the custodian of the issue of document of title of
the lot. The management corporation# %eing the registered proprietor of the common
property of the strata development# would %e conferred all the powers of a proprietor
under the )ational *and +ode 19,. -owever# this does not mean that the management
corporation would %e endowed with all the rights of a registered proprietor of a land. The
rights of the management corporation in relation to the common property are restricted
under the Act.
So# the perennial .uestion would %e when will the purchasers# %eing %eneficial
proprietors of strata parcels of a strata development# %e entitled to gain control of the
management corporation. /t is the duty of the original proprietor to convene the first
annual general meeting of the management corporation within one month after the
e$piration of the initial period. The initial period in relation to a management corporation
of a strata development means that the period commencing on the day on which the
management corporation is formed and ending the day on which there are proprietors
e$cluding the original proprietor of the lot who is registered as proprietor or proprietors
of a parcel or parcels or a provisional %loc' or %loc's the sum whose share units is at
least one-third of the aggregate share units.
/f the original proprietor should fail to comply with its statutory duty to convey the first
annual general meeting within the period specified %y the Act# the original proprietor
shall %e guilty of an offence and shall %e lia%le on conviction to a fine not e$ceeding
011#222. A registered proprietor of a strata parcel of a su%3ect strata development may#
upon the failure of the original proprietor to comply with the Act pertaining to the
convening of the first annual general meeting of the management corporation# apply to
the 4irector of *ands and 1ines for the State !which shall include the 4eputy 4irector of
*ands and 1ines"# and in the case of the Federal Territory# the *and Administrator# to
appoint a person to convene the first annual general meeting of the management
corporation within such time as is specified.
/n the interim period# %efore the parcel proprietors ta'e over effective control of the
management corporation# the latter is under the control of the developer# and the law
imposes certain restrictions on the powers of the management corporation. 4uring this
interim period# the management corporation may not amend# add to or repeal its %y-laws
in such a manner that a right is conferred or an o%ligation is imposed on one or more %ut
not all proprietors or in respect of one or more %ut not all or provisional %loc's# to %orrow
monies or give securities or enter into maintenance or service contracts for any period
e$tending %eyond the e$piration of the initial period.
The primary duties of the management corporation of a strata development are found in
the Act# and the most popularly-perceived duties of a management corporation are the
control# management and administration of the common property of the strata
development for the %enefit of all the proprietors. The management corporation is
entrusted with the responsi%ility to ensure that# on the whole# the management of the
common property would %e for the %enefit of all the proprietors and not only to some of
the proprietors and to the detriment of some proprietors.
To achieve the a%ove o%3ectives and duties# the management corporation is empowered to
collect a management fund from the proprietors of the strata development. The
management corporation may invest any monies in the management fund %ut only in
such investment or in such manner as may %e approved at a general meeting. /n
contemplation of repair wor's to the common property of a strata development# the
management corporation would collect what is popularly 'nown as a 5sin'ing fund6 from
the proprietors. The sin'ing fund shall %e maintained in a special account in accordance
with the Act# and may %e utilised# %y special resolution# to meet the actual e$penses or
e$pected lia%ilities in respect of the painting or repainting of the common property# to
[Link] any movea%le property for the use of the common property# to renew or replace
any fi$ture or fi$tures or fittings comprised in any common property vested in the
management corporation.
