Malaysia legislation
Section 22
Section 22
(1)
The management corporation, where —
(a)
the building is totally destroyed; or
(b)
the subsidiary owners seek to demolish the building, or in the case of a building which has been partially destroyed, the remaining parts of the building; or
(c)
there is only one subsidiary owner, may be directed by unanimous resolution to take action to terminate the subdivision of the building, and the corporation if so directed shall lodge with the Registrar for registration a notification in Form E of the First Schedule, together with the issue documents of title of the building and the parcels.
(2)
On receipt of a notification under subsection (1) the Registrar shall make a memorial of the notification in the register and the subsidiary register, and shall inform the
Government surveyor that he has done so.
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(3)
On the making of a memorial under subsection (2) in respect of a subdivided building —
(a)
the subdivision shall be terminated and the subsidiary owners shall cease to be owners of the parcels; and
(b)
the management corporation shall become the owner of the lot as the trustee of the former subsidiary owners.
(4)
Where the management corporation becomes the owner of the lot under subsection (3) —
(a)
any registered charge on a parcel which existed immediately before the termination of the subdivision shall be converted into a personal obligation of the chargor to pay to the chargee what is due under the charge;
(b)
each of the former subsidiary owners shall continue to be a member of the corporation, having the same voting rights as he had immediately before the termination of the subdivision;
(c)
the corporation shall hold and manage the lot for the benefit of the former subsidiary owners;
(d)
the former subsidiary owners may by unanimous resolution direct the corporation to transfer the lot to any one or more of the former subsidiary owners or to any other person or body; and
(e)
the corporation shall distribute any profits arising from its ownership of the lot (including any purchase money received on a transfer) to the former subsidiary owners proportionately to the share units which they held immediately before the termination of the subdivision.
(5)
Notwithstanding the termination of a subdivision under this section, the relevant set of files of the subsidiary register shall continue in existence while the management corporation remains the owner of the lot and may be used in evidence as a record of matters relating to the subdivision before its termination.
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(6)
Where the management corporation, having become the owner of the lot under subsection (3), transfers the lot in pursuance of a direction under paragraph (d) of subsection
(4)
—
(a)
the management corporation shall continue in existence for so long as is reasonably necessary to wind up its affairs and shall then cease to exist;
and
(b)
the Registrar shall cancel the relevant book of the subsidiary register.
(6A)
A court of competent jurisdiction, if it is satisfied that the justice of the case so requires —
(a)
may on the application of the management corporation, an owner or a registered chargee of a parcel make an order —
(i)
directing the management corporation to take action under subsection (1) notwithstanding the absence of a unanimous resolution; or
(ii)
prohibiting the management corporation from taking action under subsection (1) notwithstanding a direction given by unanimous resolution; and
(b)
where the management corporation has transferred the lot in pursuance of a direction under paragraph (d) of subsection (4), may on the application of the management corporation, a former owner or a former chargee make an order for the winding up of the affairs the management corporation.
(7)
In this section —
―former chargee‖ means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the registered chargee of a parcel in the building;
―former owner‖ means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the
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proprietor of a parcel in the building or of a provisional block on the land on which the building is situated; and
―former subsidiary owner‖ means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the subsidiary owner of a parcel in the building.