Section 64 — STRATA MANAGEMENT ACT 2013

(2)

After the establishment of the subsidiary management corporation for the limited common property, the management corporation shall retain its powers and duties in matters concerning common property of the development area which is not designated as limited common property.

(3)

Without prejudice to the generality of subsection (1), the subsidiary management corporation shall—

(a)

subject to sections 66 and 67, establish its own maintenance account and sinking fund account for the common expenses of its limited common property, including expenses related to its limited common property;

Strata Management 83

(b)

require proprietors of parcels in the subsidiary management corporation to pay the Charges, and contribution to the sinking fund;

(c)

enforce the by-laws relating to its limited common property;

and

(d)

otherwise have the control, management and administration of its limited common property.

(4)

A subsidiary management corporation shall not enter into any contract or sue in the name of the management corporation and the management corporation shall have no liability for contracts made or debts or legal costs incurred by the subsidiary management corporation.

(5)

A subsidiary management corporation may obtain insurance only—

(a)

against risks that are not insured by the management corporation; or

(b)

for amounts that are in excess of amounts insured by the management corporation.

(6)

For the purposes of subsection (5), a subsidiary management corporation shall have the same insurable interest in its limited common property as the management corporation has in the common property.

(7)

Notwithstanding any other provision of this Act, a subsidiary management corporation for any limited common property comprised in a development area may manage and maintain—

(a)

any common property within that same development area;

or

(b)

any other limited common property of another subsidiary management corporation within that development area, upon such terms and conditions as may be agreed between the subsidiary management corporation and the management corporation or other subsidiary management corporation, as the case may be.

Act 757

Expenses of subsidiary management corporation