Building Management Enactment 2026

This Enactment may be cited as the Building Management

The Minister may appoint, from amongst the members of State public service, a Commissioner of Building Management and a Deputy

The Minister may give to the Commissioner such directions, consistent with the provisions of this Enactment, relating to the performance of his functions, and the Commissioner shall comply with such directions.

The schedule of parcels shall be made in Form A of the First Schedule.

Where the schedule of parcels are in relation to housing development, the developer shall comply with all requirements under the Housing Development

Where an amendment to the schedule of parcels prepared by the developer has been approved by the local authority, the developer shall, within fourteen days from the date of such approval, file the amended schedule of parcels with the Commissioner.

Any developer who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding six months or to both.

The developer shall, within fourteen days from the date of the certificate of fitness for occupation of a building, apply to the

The Commissioner may, if he is satisfied that the requirements under subsection (1) have been complied with, issue the certificate of establishment of management corporation, within one month after receiving the application under subsection (1).

The certificate of establishment of management corporation shall be sufficient evidence of the existence of the management corporation for the purpose of opening bank accounts with any bank or financial institution and for any matter necessary for the management of the building.

A management corporation established under this section —

shall comprise of all purchasers of the parcels in the building and, where there are unsold parcels, the developer in respect of those parcels;

shall be a body corporate with perpetual succession and has a common seal;

may sue and be sued in its corporate name;

shall be called in the manner as prescribed; and

shall be the custodian of the lease to the lot.

The management corporation shall, at its first annual general meeting, elect a council to —

perform the duties and conduct the business of the management corporation; and

exercise any of its powers, subject to any restriction imposed or direction given at that annual general meeting.

A management corporation shall have the powers, duties and functions conferred or imposed on it by or under this Enactment or by the by-laws in respect of the building and, subject to this Enactment, has the control, management and administration of the common property of the building.

The Third Schedule shall apply to the management corporation and its council.

Any developer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

For the purposes of subsection (1), the developer —

shall act as trustee for the purchasers;

shall determine and impose the amount of contributions payable by the purchasers to the maintenance account and sinking fund account;

shall keep the common property in good repair;

shall effect insurance as required under this Enactment;

shall comply with any notice or order given or made by the local authority, Commissioner or other public authority in relation to the common property;

shall prepare and maintain a Register of Purchasers;

shall cause the accounts required under this Enactment to be audited annually by an approved company auditor and to submit the audited financial statements to the Commissioner and purchasers;

shall enforce the deed of mutual covenants and by-laws for regulating the control, management, administration, use and enjoyment of the building and its common property;

shall pay the rates for the common property and the annual rent for the lot;

shall disclose any pecuniary interest or conflict of interest in contracts, properties or arrangements relating to the building before entering into such contracts, properties or arrangements;

shall set aside, out of the common property of the building, separate and distinct areas for the purposes of an administration office and for the management operations for the carrying out of the duties of the developer under this

shall do such other things as may be expedient or necessary for the management and maintenance of the buildings and the common property.

The developer may —

collect the contribution to the maintenance account in respect of the use category of parcels from the purchasers in proportion to the area of their respective parcels;

collect the contribution to the sinking fund account in respect of the use category of parcels from the purchasers which shall not be less than ten percent of the contribution to the maintenance account;

authorise expenditure for management and maintenance of the building and common property; and

recover expenses incurred from any purchaser in respect of their parcel.

The developer shall not —

borrow money or give security over the common property;

amend the by-laws in a manner imposing obligations on one or more but not all purchasers; or

enter into or cause to be entered into any contract relating to the maintenance, service or management of the building or the common property which extends beyond the date of the first annual general meeting of the management corporation, but any such contract shall, upon its expiry, be deemed to continue on a month-to-month basis unless and until terminated by the management corporation by one month’s written notice.

Any developer who contravenes this section commits an offence and shall on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

The developer shall pay into the maintenance account —

in respect of every parcel sold in the building, all contributions received by the developer from the purchasers;

in respect of every parcel or development parcel not yet sold in the building, an amount equal to the amount of contributions payable by a purchaser to the developer had the parcel or development parcel been sold;

any income derived from the common property; and

any deposits or moneys collected from the purchasers pursuant to the sale and purchase agreement for the purpose of management and maintenance of the common property, and all such moneys shall be deposited into the maintenance account within three working days of receiving the moneys.

The maintenance account —

shall not form part of the developer’s assets;

shall be held on trust by the developer for the purchasers until the expiry of the developer’s management period; and

shall only be used solely for the purpose of meeting the actual or expected general or regular expenditure necessary in respect of the following matters:

paying annual rent and rates in respect of the common property, if any;

paying other expenses of a general or regular nature relating to the management and maintenance of the building and the common property.

Any developer who contravenes this section commits an offence and shall on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

The developer shall pay into the sinking fund account —

in respect of every parcel sold in the building, all contributions to the sinking fund received by the developer from the purchasers; or

in respect of every parcel or development parcel not yet sold in the building, an amount equal to the contribution of sinking fund which would have been payable by a purchaser of such parcel or development parcel, and all such money shall be deposited into the sinking fund account within three working days of receiving the money.

The sinking fund account shall —

not form part of the developer’s assets;

be held on trust by the developer for the purchasers until the expiry of the developer’s management period; and

be used solely for the purpose of meeting actual or expected general or regular expenditure necessary in respect of the following matters:

Any developer who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

The developer shall pay the contribution in respect of those parcels which have not been sold, being a sum equivalent to the contributions payable by the purchasers to the developer had the parcels been sold.

Where contributions are paid in a lump sum, the developer shall apportion the amount and transfer the respective sums into the appropriate accounts as soon as practicable and in any event not later than one week after the end of each month.

Where any contribution remains unpaid after the expiry of the period specified under subsection (1), the purchaser shall pay interest on the outstanding sum at the rate of twenty-four per centum per annum calculated on a daily basis until full payment is made.

Where the developer intends to vary the rate of contribution specified in the sale and purchase agreement, he shall appoint a registered property manager to determine and certify the rate of contribution per unit area for each parcel and the registered property manager may certify different rates for parcels according to their respective categories of use, but the amount payable by each purchaser shall be proportionate to the area of his parcel.

Where a restriction is imposed by a relevant authority on a category of use of a parcel, the developer may, in respect of the parcels affected with that restriction, reduce or exempt the interest payable under subsection (3).

Any payments made by a purchaser or any party making such payment on behalf of the purchaser shall be applied in the accounts of the management corporation by discharging sums owing in the following order of priority:

late payment interest;

penalties;

miscellaneous charges already due;

sinking fund account contributions; and

maintenance account contributions.

Any developer who contravenes subsection (2), (3) or (5) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, to a further fine not exceeding five thousand ringgit for every day or part thereof during which the offence continues after conviction.

in the case where the control of all balances of money is to be transferred under section 18, audited up to the date of the actual transfer of the control; or

in the case where the accounts are to be presented at the first annual general meeting of the management corporation, up to the date not earlier than three months before the meeting.

A certified copy of the audited accounts and the auditor’s report shall be filed with the Commissioner within twenty-eight days of completion of the audit.

Where the Commissioner has reasonable grounds to believe that there has been mismanagement or improper handling of the maintenance account or sinking fund account by the developer, the Commissioner may appoint an approved company auditor to audit such accounts, and the cost of such audit shall be borne by the developer.

The developer shall publish the audited accounts in a conspicuous part of the building within fourteen days after the completion of the audit for a period of not less than eight weeks.

The developer shall, at any other time when requested by the purchaser of any parcel in the building or his authorized agent to view the audited accounts, permit copies to be made or extracts to be taken from such audited accounts.

Any developer who contravenes this section commits an offence and shall on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit, and in the case of a continuing offence, to a further fine not exceeding five thousand ringgit for every day during which the offence continues after conviction.

The developer shall cause an architect, engineer or registered property manager to carry out an inspection of the common property including installed building plant and equipment and to prepare a detailed schedule of defects, if any, for submission to the Commissioner, and to the developer to rectify the defects within the period of one month before the defects liability period expires.

The developer shall not utilise the maintenance account or sinking fund accounts for the purposes of subsection (1).

Any developer who contravenes this section commits an offence and shall on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit, and in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for every day during which the offence continues after conviction.

For the purposes of this section, “common property” excludes any common property of a housing development.

The developer shall give written notice of the first annual general meeting to all purchasers not less than twenty-one days before the meeting and a copy of such written notice shall be displayed in a conspicuous part of the building.

At the first annual general meeting, the developer shall present an annual budget for a period of twelve months starting from the first day of the month immediately after the date of the first annual general meeting.

The agenda for the first annual general meeting shall include the following matters:

to decide whether to confirm, vary or extend insurances effected by the management corporation;

to decide whether to confirm or vary any amount determined as contribution to the maintenance account;

to determine the number of members of the council and to elect the members of the council where there are more than three purchasers;

to decide whether to adopt, amend, add to or repeal the by-laws in force immediately before the holding of the meeting by virtue of the sale and purchase agreement; and

to approve the persons authorized to be signatories to the management corporation’s bank accounts.

The rights and liabilities of the developer under any contract relating to the management, maintenance or operation of the building shall, to the extent that they were subsisting immediately before the establishment of the management corporation, devolve upon the management corporation upon its establishment.

Where the developer fails to convene the first annual general meeting within the period under subsection (1), the Commissioner may, on the application of a purchaser or chargee, appoint a registered property manager to convene the first annual general meeting and the developer shall pay the expenses incurred for that purpose.

The registered property manager appointed under subsection (6)

The developer shall not utilise funds from the maintenance account or sinking fund account to pay expenses incurred under subsection (6).

Any developer who contravenes with this section commits an offence and shall on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, to a further fine not exceeding five thousand ringgit for each day the offence continues.

Any contribution or charges payable under this Enactment shall attach to the parcel in respect of which it is imposed, not subject to

The developer may register the unpaid amount as a charge on the parcel in accordance with the Land Ordinance and may enforce the charge, including by sale of the parcel, in the manner provided by law.

Any discrepancy in the amount due shall not invalidate the disposal proceedings under subsection (3).

The purchaser, his successor in title, chargee or assignee shall be jointly and severally liable for all amounts due under this Enactment.

The rate of interest on late payments, the order of application of payments and any other related matters shall be as prescribed.

transfer the control all balances of moneys in the maintenance account and the sinking fund account, after payment of all the expenditure which have been properly charged to the accounts, to the management corporation; and

hand over to the management corporation —

If only unaudited accounts have been handed over under subparagraph (1)(b)(iii), the developer shall, not more than three months after the expiry of the developer’s management period, hand over to the management corporation the audited accounts up to the date of transfer of the balances of moneys referred to in paragraph (1)(a).

If any balance of moneys in the maintenance account and the sinking fund account has not been transferred under paragraph (1)(a), the moneys shall vest in the management corporation on the date of its establishment, without prejudice to any right of the management corporation to recover such moneys.

Without prejudice to the generality of subparagraph (1)(b)(v), the developer shall deliver to the management corporation copies of all of the following documents:

all approved plans for buildings relating to the development area;

any document in the developer’s possession that indicates, as far as practicable, the actual location of any pipe, wire, cable, chute, duct or other facility for the passage or provision of systems or services, if the developer has reason to believe that the pipe, wire, cable, chute, duct or other facility is not located as shown on an approved plan or an approved amended plan;

all contracts entered into by the developer in respect of the maintenance or management of any building and the common property comprised in the development area;

a copy of the schedule of parcels or the amended schedule of parcels, if applicable, filed with the Commissioner and a copy of the Form A filed with the Director in accordance with the Land (Subsidiary Title) Enactment 2026, if any;

the names and addresses of such contractors, subcontractors and persons who supplied labour or materials to the development area during the construction of any building and the common property comprised in the development area;

all warranties, manuals, schematic drawings, operating instructions, service guides, manufacturer’s documentation and other similar information in respect of the construction, installation, operation, maintenance, repair and servicing of any common property, including any warranty or information provided to the developer by any person referred to in paragraph (e); and

the original copy of all insurance policies effected under this

The Register of Purchasers shall contain such particulars as may be determined by the Commissioner.

Any developer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Upon the expiry of the developer’s management period, the developer shall handover the control of the Register of Purchasers to the management corporation which shall then assume the duty to maintain the Register of Purchaser.

Any developer who contravenes subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit.

Any management corporation who contravenes subsection (2)

any change of ownership of his parcel;

any dealing to the parcel which he is aware of; or

any change of his address for the service of document, within the period of sixty days where the circumstances of change has arisen or came within his knowledge.

Any purchaser who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.

The management corporation shall, after the first annual general meeting under section 16 is held, file the Register of Purchasers on an annual basis with the Commissioner at least fourteen days before its annual general meeting.

Any developer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Any management corporation who contravenes subsection (2)

to maintain and manage the building and common property and keep it in a state of good and serviceable repair;

to determine and impose contributions to the maintenance account and sinking fund account;

to effect insurance as required under this Enactment and to insure against such other risks as may be determined by an ordinary resolution;

to pay the annual rent and rates in respect of the common property;

to comply with any notice or order given or made by the local authority or any competent public authority requiring the abatement of nuisance, or ordering repairs or other work to be done in respect of the common property;

to maintain the Register of Purchasers in accordance with this Enactment;

to ensure the accounts of the management corporation to be audited annually and to provide the audited financial statements to the Commissioner and its members;

to enforce the by-laws; and

to convene general meetings in accordance with the Third

The management corporation shall have the following powers:

to collect contributions to the maintenance account and sinking fund account from purchasers in proportion to the floor area of their parcels;

to authorize expenditure for the maintenance and management of the building and common property;

to recover from any purchaser any sum expended in complying with any notice or order referred to in paragraph (1)(e);

to acquire movable property for use in connection with the common property;

to employ a registered property manager for the administration of the management corporation;

to make additional by-laws or make amendments to such additional by-laws, not inconsistent with the by-laws prescribed by the regulations for the proper maintenance and management of the building and common property; and

to do all things reasonably necessary for the performance of its duties under this Enactment.

The management corporation may, by special resolution in a general meeting, undertake improvements to the common property that materially change its use or appearance or increase its operating costs.

where a notice has been served on a purchaser by any public authority requiring that purchaser to carry out any work on or in relation to the parcel and the notice is not complied with;

where the purchaser, chargee, lessee or occupier of the parcel fails to —

where any order of the Tribunal, including an interim order, requiring any work to be carried out is not complied with.

The cost of any work carried out by the management corporation under subsection (1) shall be recoverable as a debt —

from the purchaser, chargee, lessee or occupier referred to in subsection (1); or

where the work relates to a parcel and ownership of the parcel has changed after the work was carried out, from the person who becomes the purchaser of the parcel.

Notwithstanding subsection (2), where the management corporation carries out any work under paragraph (1)(c), the cost of the work shall be recoverable in accordance with section 31.

The management corporation may, for the purpose of carrying out any inspection or work —

if required by any notice served on it by a Government or statutory authority;

if required by any order of the Commissioner; or

in the exercise of its powers and duties under this

The management corporation may, by its agents, employees or contractors, enter upon any parcel —

at any time, in the case of an emergency; or

at all reasonable times, in any other case, after giving reasonable notice to the occupier.

Any person who obstructs or hinders the management corporation in the exercise of its powers under this section commits an offence.

The purchaser of the parcel shall take all reasonable steps to prevent or reduce any damage or loss arising from the work carried out under this section and shall have no right to claim against the management corporation for any such damage or loss.

All contributions and money payable to the maintenance account and sinking fund account shall be —

applied only for the purposes specified under paragraphs 11(3)(c) and 12(3)(c) of this Enactment; and

administered in such manner as may be prescribed.

The management corporation may, through an ordinary resolution at a general meeting —

raise the amount of contributions to the maintenance account and sinking fund account;

impose a different rate of contribution per floor area of the parcel for different categories of use;

impose interest of twenty four percent per annum on late payments; and

impose additional contributions to the maintenance account and sinking fund account where necessary to meet expenditure.

Any contributions to the maintenance account and sinking fund account imposed under this section shall be recoverable from the purchasers in the manner provided under this Enactment.

The management corporation shall —

maintain proper accounts and records sufficient to show all of its transactions and financial position;

cause the accounts to be audited annually by an approved company auditor; and

file the audited accounts with the Commissioner within the period of six months after the end of the financial year.

Where the Commissioner has reasonable grounds to believe that there has been mismanagement or improper handling of the maintenance account or sinking fund account by the management corporation, the

The management corporation shall furnish to the Commissioner such returns, reports, accounts or information relating to its finances as the

If the management corporation contravenes this section, every council member of the management corporation commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

In proceedings under subsection (4), it shall be a defence if the council member proves that —

the offence was committed without his knowledge, consent or connivance; and

he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence.

This section shall not apply to a management corporation with one purchaser, and in the case of a management corporation with not more than four purchasers, the audited accounts requirement shall not apply if all purchasers sign the accounts as a true record.

Where there are different categories of use in a building, the management corporation may, by ordinary resolution at a general meeting, impose different rates of contribution to the maintenance account and sinking fund account for each category of use, provided that the total contribution to the maintenance account and sinking fund account for each parcel shall be proportionate to its floor area.

A chargee of a parcel shall be jointly and severally liable with the purchaser for —

any contribution to the maintenance account or sinking fund account;

any other amount payable if notice of such amount has been served on the chargee; and

interest on any of the above amounts.

In this section, “purchaser” includes a chargee, a trustee, and any person receiving rent from the parcel or who would be entitled to receive the rent if the parcel were let.

The Minister may, before a certificate of fitness for occupation is issued, reduce the rate of contribution payable in subsection (1), having regard to the use and enjoyment of the common property within such development.

The management corporation may ––

grant rebates or discounts on contributions to the maintenance account and sinking fund account only in such circumstances as it considers appropriate, subject to an ordinary resolution of the management corporation passed at an annual general meeting;

allow contributions to the maintenance account and sinking fund account to be paid by instalments on such terms as it considers appropriate; and

impose additional contributions to the maintenance account and sinking fund account on any parcel where only that parcel benefits from particular services or facilities.

Any contribution or charge payable under this Enactment shall attach to the parcel in respect of which it is imposed, not subject to the

The management corporation may register the unpaid amount as a charge on the parcel in accordance with the Land Ordinance and may enforce the charge, including by sale of the parcel, in the manner provided by law.

Any discrepancy in the amount due shall not invalidate the proceedings under subsection (3).

The purchaser, his successors in title, chargee or assignee shall be jointly and severally liable for all amounts due to the management corporation under this Enactment.

The rate of interest on late payments, the order of application of payments and any other related matters shall be as prescribed.

acquire any land or parcel within or outside the lot where the building stands for purposes connected with the building or the management corporation;

grant any easement over the lot for the benefit of other land;

accept any easement in favour of the lot from other land.

Any land or parcel acquired under paragraph (1)(a) —

shall be treated and dealt with as if it were part of the common property; and

shall be held under a separate title without the need for amalgamation with the lease of the lot.

Where the management corporation executes any instrument for the purposes under subsection (1) —

the instrument shall be valid if executed under the common seal of the management corporation by two council members authorized by an ordinary resolution;

any payment made to the management corporation under the instrument shall be a full and sufficient discharge to the payer; and

the instrument shall be endorsed with or accompanied by a certificate under the common seal of the management corporation stating that —

A certificate given under paragraph (3)(c) shall be conclusive evidence of the facts stated in it.

residential and non-residential parcels;

different categories of non-residential parcels;

different categories of residential parcels; or

such other parcels as may be prescribed.

Each subsidiary management corporation may comprise one or more parcels and shall be responsible for the management and maintenance of the precinct common property designated for its use and enjoyment.

before the establishment of the management corporation—

after the establishment of the management corporation—

A precinct designation shall —

clearly show the boundaries, and parcels entitled for the use of the precinct common property; and

be filed with the Commissioner in the manner as determined by him.

Any shared facilities or utilities serving more than one precinct, or serving parcels outside the precinct, shall remain as part of the common property under the management corporation.

The designation of a separate precinct is not required where a different use only forms a small component of the building and is ancillary to the main use of the building unless the Commissioner directs otherwise.

The management corporation and the affected subsidiary management corporation may, through a special resolution —

amend the boundaries of a precinct, common property or precinct common property; or

amalgamate two or more precinct.

Notwithstanding any designation under this section, access rights to common property or other precinct property through any precinct common property shall be preserved.

comprises all purchasers of the parcels within the designated precinct and, where there are unsold parcels, the developer in respect of those parcels;

be a body corporate capable of suing and being sued, having perpetual succession and a common seal; and

be issued with a certificate of establishment of subsidiary management corporation by the Commissioner, which shall be conclusive evidence of its formation for all purposes, including opening bank accounts and carrying out its functions.

A subsidiary management corporation shall elect a subsidiary council which, subject to any restriction imposed or direction given at a general meeting, shall perform the duties and conduct the business of the subsidiary management corporation on its behalf and may exercise all its powers for that purpose.

The purchasers and, where there are unsold parcels, the developer in respect of those parcels, who constitutes a subsidiary management corporation may hold meetings and pass resolutions in the same manner as for a management corporation.

One member of the subsidiary council shall be elected by the subsidiary council as a member of the council of the management corporation.

The provisions of the Third Schedule shall apply, with the necessary modifications, to a subsidiary management corporation and its subsidiary council.

The following matters remain to be the responsibility of the management corporation unless otherwise agreed under subsection (3) —

annual rent and rates in respect of the lot and the common property;

works involving the external facade and appearance of the building;

landscaping, external roads, drains and lighting;

access through and to common property;

services or facilities for the benefit of two or more precincts or parcels outside any precinct; and

structural elements supporting two or more precincts.

A management corporation and a subsidiary management corporation may, if authorised by a special resolution at their respective general meeting, execute an instrument authorising subsidiary management corporation to undertake any of the matters stipulated under subsection (2).

A subsidiary management corporation shall —

establish and maintain its own maintenance account and sinking fund account;

enforce by-laws within its precinct common property;

pay contributions to the maintenance account and sinking fund account due to the management corporation for common property in full each month; and

manage, control and administer its precinct common property.

A subsidiary management corporation shall not enter into any contracts or initiate any proceedings in the name of the management corporation, and the management corporation shall not be liable for debts or obligations of any subsidiary management corporation.

A subsidiary management corporation may, on such terms as agreed

between the management corporation and subsidiary management corporation, authorize the subsidiary management corporation to manage or maintain any common property within the building on behalf of the management corporation; or

between two subsidiary management corporations of a management corporation, authorize anyone among them to manage or maintain —

Where a subsidiary management corporations is established under section 35, the management corporation shall apportion its expenses fairly between the subsidiary management corporations and any of its parcels not located within a precinct.

For the purpose of subsection (1), a registered property manager may be appointed to calculate and determine the expenses by the subsidiary management corporation whenever a dispute arises on the apportionment, and the party aggrieved by the calculation of the registered property manager may appeal to the Tribunal.

The management corporation shall bill each subsidiary management corporation and any of its parcels not located within a precinct for their respective shares of contributions, at such intervals and in such manner as may be prescribed.

The management corporation shall maintain separate book of accounts for each subsidiary management corporation and for any of its parcels not located within a precinct.

The subsidiary management corporation shall pay the management corporation its share of contributions for the common property.

Where any contribution or charges under this Enactment remains unpaid after the period specified in a written notice by the subsidiary management corporation, the subsidiary management corporation may recover the amount as a debt due to the subsidiary management corporation.

Any contribution or charges payable under this Enactment shall attach to the parcel in respect of which it is imposed, not subject to

The subsidiary management corporation may register the unpaid amount as a charge on the parcel in accordance with the Land Ordinance and may enforce the charge, including by sale of the parcel, in the manner provided by law.

Any discrepancy in the amount due shall not invalidate the disposal proceedings under subsection (5).

The purchaser, his successor in title, chargee or assignee shall be jointly and severally liable for all amounts due under this Enactment.

The rate of interest on late payments, the order of application of payments and any other related matters shall be as prescribed.

All subsidiary management corporations shall operate their accounts to the same financial year as their management corporation.

All subsidiary management corporations shall submit a full copy of their audited financial statements each financial year to the council of the management corporation within the period of fourteen days of completion of the audit, for the management corporation’s onward submission to the

All financial and accounting provisions that apply to the management corporation under this Enactment shall also apply to subsidiary management corporations.

In making a determination and apportionment under subsection (1), the registered property manager shall take into consideration —

the operating budgets and responsibilities for the management and maintenance of common property and precinct common property;

the use and enjoyment of the common property by the purchasers of the respective parcels;

the estimated expenditure for the management and maintenance of the building and any precinct common property; and

any other matter as may be determined by the Commissioner.

Any determination and apportionment made under this section shall be binding on the management corporation and subsidiary management corporation, unless varied by the Commissioner.

Any contribution or charge payable under this Enactment shall not subject to the Limitation Ordinance.

The rate of interest on late payments and any other related matters shall be as prescribed.

In the case of a single-owner subsidiary management corporation, the management corporation may register the charge against the subsidiary title of the parcel forming the subsidiary management corporation.

A judgment referred to in subsection (1) shall be calculated in such proportion as if the amount of the judgement were a contribution to the maintenance account and sinking fund account of the subsidiary management corporation, and a purchaser’s liability shall be limited to that proportionate share of the judgement unless the judgement relates to some but not all the parcels in the precinct in which case the judgement sum is to be apportioned accordingly between the relevant parcels only.

the management corporation, by special resolution, resolves that the subsidiary management corporation be dissolved;

the subsidiary management corporation, by special resolution, resolves that it be dissolved.

Notwithstanding subsection (1), the management corporation may, by special resolution, dissolve a subsidiary management corporation where

the subsidiary management corporation is unable to carry out its functions effectively; or

it is expedient in the interest of the proper management of the building to do so.

Upon the dissolution of a subsidiary management corporation under this section —

the designation of the precinct shall cease;

the precinct common property shall cease to be designated as such and shall become part of the common property of the building; and

all rights, interests, liabilities and obligations of the subsidiary management corporation shall vest in the management corporation.

The dissolution shall take effect on the date specified in the special resolution of the management corporation, and from that date, the management corporation shall assume control, management, and ownership of the terminated precinct common property.

All income arising from any precinct common property shall be credited into the maintenance account of the subsidiary management corporation responsible for that precinct and applied for expenses relating to that precinct.

the amount of contributions payable to the maintenance account and sinking fund account for the parcel;

the time and manner of payment; and

the amount of any arrears, interest or other charges owing in respect of the parcel, if any.

The certificate issued under this section shall be conclusive evidence of the matters stated in it.

Any person intending to dispose of a parcel shall inform any prospective purchaser or bidder of the parcel of all house rules, mutual covenants, sale and purchase terms, contributions and other payments required to be paid before ownership of the parcel may be transferred.

For the purpose of subsection (3), any person intending to dispose of a parcel shall include any assignee or chargee of the parcel.

Any person who contravenes subsection (3) commits an offence and shall, on conviction, be liable to a fine not exceeding five thousand ringgit.

A management corporation or subsidiary management corporation may, as the case may be, by a special resolution, make additional by-laws or make amendments to such additional by-laws, not inconsistent with the by-laws prescribed by regulations made under section 131, for regulating the control, management, administration, use and enjoyment of the building, common property and precinct common property, including all or any of the following matters:

safety and security measures;

details of any common property and precinct common property of which the use is restricted;

the keeping of pets;

parking;

floor coverings;

refuse control;

behaviour;

architectural and landscaping guidelines to be observed by all purchasers; and

imposition of fine not exceeding five hundred ringgit against any purchaser, occupant or invitee who is in breach of any of the by-laws.

No by-laws shall —

prohibit or restrict the transmission, transfer, lease or charge of, or any other dealing of any parcel; or

destroy or modify any easement expressly or impliedly created by or under the provisions of this Enactment.

The additional by-laws made under subsection (2) shall bind the management corporation or subsidiary management corporation, as the case may be, and the purchasers, and any chargee or assignee, lessee, tenant or occupier of a parcel to the same extent as if the additional by-laws —

had been signed or sealed by the management corporation or subsidiary management corporation, as the case may be, and each purchaser and each such chargee or assignee, lessee, tenant or occupier, respectively; and

contain mutual covenants to observe, comply and perform all the provisions of those additional by-laws.

The management corporation or subsidiary management corporation, as the case may be, shall —

keep a record of the additional by-laws in force;

on receipt of an application in writing made by a purchaser or a person duly authorized to apply on behalf of a purchaser for a copy of the additional by-laws in force, supply to such purchaser or person duly authorized by him, at a reasonable fee, a copy of the additional by-laws; and

on the application of any person who satisfies the management corporation or subsidiary management corporation, as the case may be, that he has a proper interest in so applying, make such additional by-laws available for inspection.

A copy of any additional by-laws made by the management corporation or subsidiary management corporation, as the case may be, and any amendment of any such additional by-laws for the time being in force, certified as a true copy under the common seal of the management corporation or subsidiary management corporation, shall be filed by the management corporation or subsidiary management corporation with the

The management corporation or subsidiary management corporation or any purchaser shall be entitled to apply to a court of competent jurisdiction or the Tribunal —

for an order to enforce the performance of or restrain the breach of, any by-laws by; or

to recover damages for any loss or injury to any person or property arising out of the breach of any by-laws from, any person bound to comply with the by-laws.

Where at the date of the certificate of fitness for occupation there are unsold parcel, the developer shall pay into the maintenance account of the management corporation the launching contribution for the unsold parcels in accordance with subsection (1).

All deposits shall, upon the coming of operation of this Enactment, be deemed to be a non-refundable launching contribution unless the sales and purchase agreement expressly provides for refund of any contributions deposited.

Where a purchaser has paid or is liable to pay to the developer under any sale and purchase agreement any sum representing a launching contribution or any advance payment or deposit for the management or maintenance of the building, such sum shall be deemed to be a launching contribution payable under subsection (1).

no purchasers of a building is elected as a member of the council during an annual general meeting; or

a complaint is lodged with the Commissioner in respect of the failure of the management corporation in managing and maintaining a building and common property.

The Commissioner shall not make an appointment under subsection (1) unless ––

all other reasonable steps to secure proper management and maintenance of the building and common property have been exhausted; and

such appointment is necessary in the interest of the purchasers or for the proper management and maintenance of the building and common property.

The Commissioner shall, prior to the appointment under subsection

, notify his intention in writing to appoint a registered property manager to the purchasers concerned and shall give the purchasers an opportunity to submit any written representation within such period, as may be specified in the notification, being not less than fourteen days.

After the expiry of the period specified in the notice, the

The Commissioner shall give the purchaser a written notice of his decision under subsection (4) as soon as practicable.

Any purchasers who is aggrieved by the decision of the

Pending the decision of the appeal under subsection (6), the

the management corporation shall have no powers to pass any resolution;

the council of the management corporation shall be deemed to have been dissolved;

the control over all money held in cash or accounts on any name or description by the management corporation in trust for the purchasers of the building shall vest in the registered property manager; and

the signatories of the accounts of any name or description of the management corporation shall be subject to the directions and control of the Commissioner.

Any person who contravenes the directions and control of the

Notwithstanding paragraph (1)(c), the registered property manager —

shall have no power to invest; and

shall be subject to the direction and control of the Commissioner in expending, the money held in cash or accounts of any name or description by the management corporation.

A registered property manager who contravenes subsection

commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

the registered property manager has contravened any of the provisions of this Enactment;

the registered property manager has breached any of the terms and conditions of his appointment;

the registered property manager has been convicted of an offence under this Enactment;

the appointment was improperly or illegally obtained;

the appointment was made as a result of false, inaccurate or misleading information; or

there has been any act or omission by the registered property manager or there has been a change of circumstances such that the registered property manager would no longer be entitled to be appointed under this Enactment.

Before the Commissioner makes a decision to terminate the appointment under subsection (1), the Commissioner shall give the registered property manager —

a written notice of his intention to terminate the appointment of the registered property manager; and

an opportunity to make written representation within a period specified in the written notice.

After the expiry of the period specified in the notice, the

The Commissioner shall give the registered property manager a written notice of his decision under subsection (3) as soon as reasonably practicable.

Upon the termination of his appointment, the registered property manager shall —

not more than one month from the date of such termination, prepare and submit to the Commissioner the unaudited accounts of the maintenance account or the sinking fund account, and hand over to the Commissioner a complete list of the assets and liabilities of the maintenance account and the sinking fund account and all records related to and necessary for the management and maintenance of the building; and

not later than three months from such termination, submit to the Commissioner the audited accounts of the maintenance account or the sinking fund account.

A registered property manager whose appointment is terminated shall not be entitled to —

any compensation for any loss caused to him by the termination of his appointment; and

any refund of any fees or charges paid under this Enactment.

If a registered property manager is aggrieved by the decision of the

Any registered property manager who contravenes subsection

commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Upon the termination of appointment of a registered property manager under section 54, the Commissioner may appoint another registered property manager to manage and maintain the building for a period to be specified by the Commissioner.

The Commissioner shall cause all records, documents and property received under subsection 54(5) to be handed over to the registered property manager appointed under this section.

to perform any duties or exercise any powers of the management corporation as provided under this Enactment;

subject to the approval of the Commissioner —

The Commissioner may, with the advice of the registered property manager, return the duties and powers of the management corporation in the prescribed manner if —

he is of the opinion that the management corporation have become capable of managing and maintaining the building; or

an application is made by the purchasers in the prescribed form and he is satisfied that the return of the duties and powers to the management corporation is in the best interest of the purchasers.

Where the Commissioner is satisfied that the duties and powers of the management corporation may be returned under subsection (1), the registered property manager shall ––

issue a notice to hold an extraordinary general meeting of the management corporation;

prepare, oversee and execute the extraordinary general meeting of the management corporation; and

ensure a council of the management corporation is elected at the extraordinary general meeting of the management corporation is held.

The procedures of general meeting of management corporation under Third Schedule shall be applicable to the extraordinary general meeting of the management corporation under this section unless otherwise directed by the Commissioner.

The registered property manager shall have duties and powers under section 56 up until the first meeting of the council elected under paragraph 2(c) is held.

a liquidator is appointed as a result of the developer entering into any composition or arrangement with his creditors;

the developer has a receiving order or an adjudication order made against him; or

the developer being a company goes into voluntary or compulsory liquidation, the liquidator shall within one month from their date of appointment, appoint by written notification, a registered property manager to manage and maintain the building and common property for such period until the end of the developer’s management period.

Subject to the general control and direction of the Commissioner, a registered property manager appointed under this section shall enter into a management agreement with the appointed liquidator to carry out the duties and powers of the developer during the developer’s management period as provided for under this Enactment.

No remuneration or fees, at any given time, in whatever name or style, shall be payable to the liquidator from the maintenance account or sinking fund account of the management corporation or subsidiary management corporation.

Notwithstanding subsection (3), the liquidator may be entitled to remuneration from the maintenance account or sinking fund account for the period commencing from the date of his appointment by the court until

Any person who contravenes subsections (1), (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

The Commissioner may in writing order a freeze on accounts of any name or style of the management corporation, if —

the Commissioner has reasonable grounds to suspect that a management corporation is operating in a manner detrimental to the interest of the purchasers; or

the Commissioner has reasonable grounds to suspect that an offence under this Enactment has been or is being or is about to be committed by the management corporation.

An order under subsection (1) may —

direct that the account, or such part of the account is not disposed of, or otherwise dealt with, by any person, except in such manner and in such circumstances, as are specified in the order;

provide the manner in which the account should be administered or dealt with.

No bank or financial institution, or director, officer or employee of the bank or financial institution, as the case may be, shall be subject to any claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance of or execution or intended execution of or in connection with the execution or intended execution of an order of the Commissioner under subsection (1).

The Commissioner shall not be liable for any damages or cost arising directly or indirectly from the making of an order under this section unless it can be proved that the order under subsection (1) was not made in good faith.

Any person who contravenes the order from the Commissioner in subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not more than three years or to both.

Upon receipt of an application made under subsection (1), the

subject to any terms and conditions as he may impose, vary the order with regard to—

subject to any terms and conditions as he may impose, revoke such order; or

refuse the application, by stating the grounds for refusal.

the existing maintenance account or sinking fund account of the management corporation is not accessible or properly maintained; or

such opening and operating of the new account is necessary for the proper management and maintenance of the building.

An account opened under subsection (1) shall be operated for such period and for such purposes as the Commissioner may specify.

The registered property manager shall —

deposit into that account all moneys collected in the course of management;

make payments only for expenses properly incurred during the management and maintenance of the building; and

keep proper records and statements of receipts and payments made through that account.

Upon the expiration of the appointment of the registered property manager or upon the direction of the Commissioner, the balance of the account and all records relating to it shall be handed over

to the management corporation upon the return of its duties and powers; or

where another registered property manager is appointed under this Part, to that registered property manager.

A registered property manager may be appointed by contract ––

by the developer acting on their own behalf during the developer’s management period; or

after the developer’s management period, by the council of the management corporation or the subsidiary council of the subsidiary management corporation, as the case may be, for such period and on such terms and conditions as may be specified in the contract.

The appointment of a registered property manager may be terminated at any time in accordance with the terms of the contract.

Any developer, management corporation or subsidiary management corporation, as the case may be, who has entered into a contract for the appointment of a registered property manager under subsection (1), shall file with the Commissioner such contract within fourteen days after the signing of such contract.

Any developer, management corporation or subsidiary management corporation who contravenes subsection (3) commits an offence and shall be liable to a fine not exceeding five thousand ringgit.

A developer, management corporation or subsidiary management corporation may, as the case may be, by instrument in writing, delegate to a registered property manager appointed under subsection 62(1) such of its powers and duties under this Enactment as are necessary for the management and maintenance of the building and its common property, subject to such terms and conditions as the developer, management corporation or subsidiary management corporation, as the case may be, may impose.

Any act or thing done or suffered by a registered property manager in the exercise of a delegation under subsection (1) shall have the same force and effect as if it had been done or suffered by the developer, management corporation or subsidiary management corporation, as the case may be.

The appointment of a registered property manager shall not relieve the developer of his duties —

towards the purchasers in the building to carry out repairs to the common property or to make good any defect, shrinkage or other faults in the common property during the defects’

to carry out repairs and varied and additional works to ensure that the development is constructed in accordance with the specifications and plans approved by the competent authorities.

For the purposes of subsection (1), a person shall be regarded as having a professional or pecuniary interest if —

he has been directly involved in the design or construction of the building;

he or any of his nominees, officers or employees has any material interest in the building or any part thereof;

he is a partner of, or is in the employment of, a person who has any material interest in the building or any part thereof;

he or his spouse, or any member of his immediate family, has any interest in the building or any part thereof, whether directly or as a trustee or otherwise.

the Commissioner; and

the developer, management corporation or subsidiary management corporation, as the case may be.

Notwithstanding subsection 64(1), the Commissioner may dispense with the prohibition under that subsection if —

the interest has been disclosed in accordance with subsection (1); and

he is satisfied that granting the dispensation is in the interests of the purchasers.

Subject to subsection (2), the appointment of a registered property manager under section 62 shall be approved by an ordinary resolution at a general meeting of the management corporation or subsidiary management corporation, as the case may be.

Any registered property manager who contravenes subsection

commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit.

Any management corporation or subsidiary management corporation who contravenes subsection (3) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit.

the rebuilding of the building or its replacement by a similar building if such building is destroyed so that every part of the rebuilt building or the replacement building is in a condition no worse nor less extensive than that part or its condition when that part was new;

the repair of damage to, or the restoration of the damaged portion of the building if the building is damaged but not destroyed, so that the repaired or restored part, is in a condition no worse nor less extensive than that part or portion when that part was new;

the payment of expenses incurred in the removal of debris and shoring up of adjacent structures; and

the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration; and

The Commissioner may, if he thinks fit, direct any person who has a duty or is responsible under this Enactment to manage and maintain any building to insure the building against any additional perils.

Where the management corporation has a subsidiary management corporation, the subsidiary management corporations shall be insured with the same insurer as the management corporation.

Where any person who has duty or is responsible under this

A damage policy effected under this section in respect of the building shall not be liable to be brought into contribution with any other damage policy, except another damage policy effected under this section in respect of the same building.

Any person who contravenes subsections (1), (4) or (5) shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

For the purpose of determining the reinstatement value of the building that is required to be insured under this Part, a reinstatement valuation of the building shall obtained from a registered valuer at least once every five years.

The cost of such valuation shall be paid out from the maintenance account of the management corporation.

Any person who has a duty or is responsible under this Enactment to manage and maintain any building shall, in addition to the damage policy under section 67, be insured for public liability for a sum of not less than two million ringgit and any errors and omissions done by him for a sum of not less than five hundred thousand ringgit, except where a unanimous resolution resolves otherwise.

The Commissioner may issue directives in respect of the insurances to be effected under this Part.

The premium for the insurance policy affected shall be paid out from the maintenance account of the management corporation.

The purchaser of each parcel shall insure all renovations, shopfronts and personal belongings and other assets within his parcel.

The developer shall insure any renovations inside the unsold parcels in the building.

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.

to inspect;

to make a copy of; or

to take extracts from, the damage policy or receipt of payment of premium of the damage policy effected by any person who has a duty or is responsible under this

Any person who is aggrieved by the refusal of the developer, management corporation or subsidiary management corporation for a request made under subsection (1) may lodge a complaint with the

After considering the application, the Commissioner may by notice in writing —

approve the application and issue to the applicant, a

refuse the application and state the grounds for such refusal.

where no appeal is made to the Tribunal, after the expiry of thirty days from the notice under subsection 75(2); or

upon an award made by the Tribunal —

affirming the decision of the Commissioner in the issuance of the Building Subdivision Authorisation; or

reversing the decision of the Commissioner in the refusal for the issuance of the Building Subdivision

The management corporation shall, upon the completion of its winding up, deliver all books, accounts, records and documents of the management corporation to the Commissioner.

is made pursuant to a claim to the Tribunal in the course of any proceeding of the Tribunal; and

is incidental to the principal object of that proceeding, and includes any direction about the conduct of that proceeding, but does not include any partial or interim order making a final determination in respect of that proceeding;

For the purposes of this Part, where a provision of this Part refers to a claim, it may also apply to a counterclaim, and where it refers to a defence, it may also apply to a defence to a counterclaim.

a Chairman and a Deputy Chairman to be appointed from among persons who have held the office as a Judge or persons who have served at least twelve years in the

not less than twelve other members to be appointed from among the persons —

who are admitted as advocates under Advocates

who are professionally qualified persons registered or licensed under any written law regulating that profession and who has not less than seven years’

A person appointed as a member of Tribunal shall not, during his term of office, hold any other office or appointment under this

Where the Chairman is for any reason unable to perform his functions or during any period of vacancy in the office of the

A member of the Tribunal referred to in paragraph (1)(b) shall hold office for a term not exceeding three years and shall be eligible for reappointment upon the expiry of his term of office.

A member of the Tribunal appointed under paragraph (1)(b) may at any time resign his office by giving three months written notice to the Minister.

The Minister may at any time revoke the appointment of a member of the Tribunal referred to in paragraph (1)(b) and fill any vacancy in its membership.

The Chairman and the Deputy Chairman shall be paid such fixed allowances and other allowances as the Minister may determine.

The members of the Tribunal appointed under paragraph (1)(b) shall be paid a daily sitting allowance during the sitting of the Tribunal as well as attendance at such meetings and training as the Chairman may authorise and such lodging, travelling and subsistence allowances as the Minister may determine.

The Minister may appoint, from amongst the members of State public service, a Tribunal Registrar.

There shall be such number of officers and staff of the Tribunal, from amongst the members of State public service, as may be necessary to carry out the functions of the Tribunal.

The Tribunal Registrar may, subject to the directions of the

The Tribunal shall have the jurisdiction to hear and determine any claims specified in Part 1 of the Second Schedule and where the total amount in respect of which an award of the Tribunal is sought does not exceed five hundred thousand ringgit or such amount as may be prescribed to substitute the total amount.

For the avoidance of doubt, the Limitation Ordinance shall not apply to the proceedings of the Tribunal.

The jurisdiction of the Tribunal shall not extend to any claim in which the title to any land, or any estate or interest in land, or any franchise, is in question.

Without prejudice to the generality of subsection (1), the Tribunal shall have the jurisdiction to hear and determine all appeals in respect of a decision of the Commissioner made under this Enactment.

Any person who is aggrieved with any decision of the Commissioner made under this Enactment may unless otherwise specifically provided, within thirty days from the date of the notice or order issued by the

Unless otherwise provided, where an appeal is lodged under this section, the decision appealed against shall be complied with until the determination of the appeal.

the proceedings before the court were commenced before the claim was filed with the Tribunal; or

the claim before the Tribunal is withdrawn, abandoned or struck out.

Where paragraph (1)(a) applies, the issues in dispute in the claim to which those proceedings relate, whether as shown in the initial claim or emerging in the course of the hearing, shall not be the subject of proceedings between the same parties before the Tribunal unless the claim before the court is withdrawn, abandoned or struck out.

a developer;

a purchaser;

a management corporation;

a subsidiary management corporation;

a registered property manager;

a co-owner of a co-ownership building; and

any other interested person, with the leave of the Tribunal.

the Chairman;

the Deputy Chairman; or

any of the members of the Tribunal determined by the

The Tribunal may sit in one or more sittings on such day and at such time and place as the Chairman may determine.

If the member presiding over any proceedings in respect of a claim dies or becomes incapacitated, or is for any other reason unable to complete or dispose of the proceedings, the claim shall be heard afresh by another member of the Tribunal, unless the parties agree that the claim be continued by another member of the Tribunal.

Where the term of appointment of any member of the Tribunal appointed under paragraph 82(1)(b) expires during the pendency of any proceedings in respect of a claim, the term of his appointment shall be deemed to have been extended until the final disposal of the claim.

All hearing before the Tribunal shall be represented by the party personally unless —

it is the opinion of the Tribunal, the matter in question involves complex issues of law or building construction, management or maintenance and one party will suffer severe hardship if he is not represented;

in the case the party is a corporation or unincorporated body of persons, it may be represented by its full time paid employee or officer; or

in the case the party is a minor or any other person under a disability, he may be represented by his next friend or guardian ad litem.

Where a party is represented as permitted under subsection (2), the

Where the Tribunal considers mediation to be appropriate, the

The parties shall be informed that —

the mediation is conducted on a without prejudice basis; and

the parties retain control over the issues to be discussed and any settlement reached.

Tribunal member who acts as a mediator shall —

facilitate discussions between the parties with a view to assisting them to reach a voluntary and mutually acceptable settlement;

remain neutral and impartial throughout the mediation process; and

not determine how the dispute should be resolved, give legal advice, or make recommendations to the parties.

Mediation may be conducted jointly or separately, and may include assistance to the parties to —

identify the issues in dispute and the underlying causes of the dispute;

understand each other’s positions and interests; and

explore options for settlement.

Where a settlement is reached, whether in whole or in part, the mediator may assist the parties to record the terms of the settlement in writing, and upon being satisfied that the settlement is voluntary, the

Any issue not resolved through mediation may proceed to hearing before the Tribunal.

Where a Tribunal member has acted as a mediator, that member shall not sit in the hearing of the claim, and the hearing shall be presided over by the Chairman or such other Tribunal member as the Chairman may appoint.

For the purposes of mediation —

no evidence shall be recorded by the Tribunal; and

no matter disclosed or statement made during mediation shall be admissible or relied upon in the hearing of the claim.

The mediation may be terminated at any time by the mediator or any party, and upon such termination, the Tribunal may proceed to hear and determine the claim.

The powers conferred upon the Tribunal under subsection (1)

to determine when and where any part of the proceedings are to be held;

to determine the language or languages to be used in the proceedings and whether translations of any relevant documents are to be supplied;

to make interlocutory orders;

to determine the relevancy, admissibility and weight of any evidence without being bound by the rules of evidence under the Evidence Act 1950 [Act 56];

to draw on its own knowledge and expertise;

to order the provision of further particulars in a statement of claim or statement of defence;

to order the giving of security for costs;

to make an on-site inspection of the site of a building which form the subject matter of the claim;

to order samples to be taken from, or any observation to be made of or experiment conducted upon, any parcel or common property or precinct common property which is or forms part of the subject matter of the claim;

to order the discovery and production of documents or materials within the possession or power of a party;

to order the preservation and interim custody of any evidence for the purposes of the proceedings;

to order the interrogatories to be answered;

to order that any evidence to be given on oath or affirmation;

to summon the parties to the proceedings or any other person to attend before it to give evidence or to produce any document, records or other thing in his possession or otherwise to assist the Tribunal in its deliberations.

A summons issued under paragraph (2)(n) shall be served and enforced as if it were a summons issued by a court.

The parties shall be given reasonable prior notice of any hearing and of any meeting of the Tribunal for the purposes of inspection of documents or property.

All statements, documents or other information supplied to the

Any expert report or evidentiary document on which the Tribunal may rely on in making its decision shall be communicated to the parties.

appoint one or more experts to report to it on specific issues to be determined by the Tribunal; and

require a party to give the expert any relevant information or to produce any relevant document or to provide access to any relevant property for the expert’s inspection.

If a party so requests, or if the Tribunal considers it necessary, the expert shall, after delivering a written or oral report, participate in a hearing at which the parties shall be given an opportunity to put questions to the expert and to present other expert witnesses to testify on the matters in issue.

An expert appointed under this section shall, if possible, be a person agreed upon by the parties, and if failing such agreement, shall be nominated by the Tribunal.

An expert appointed under this section may be paid such fees and allowances as may be determined by the Tribunal.

The parties shall be jointly liable to pay the fees and allowances of the expert, but where the appointment of a Tribunal expert is opposed, the

The Tribunal shall in all proceedings give its reasons for its award in the proceedings.

In making an award under subsection (1), the Tribunal may make one or more of the orders specified in Part Two of the Second Schedule, and may include in the award such stipulations and conditions as it thinks fit and just.

In making an order under subsection (3), the Tribunal shall have regard to —

the relevant provisions of this Enactment; and

the interests of all purchasers in the use and enjoyment of their parcels or the common property or precinct common property.

The Tribunal may, at any time, rectify or correct clerical mistakes in any award or errors arising in the award from any accidental slip or omission.

which arose in the course of the proceedings;

which, in the opinion of the Tribunal, is of sufficient importance to merit such reference; or

the determination of which by the Tribunal raises, in the opinion of the Tribunal, sufficient doubt to merit such reference.

If the Tribunal refers any question of law under subsection (1)

every agreed settlement reached by the parties under subsection 91(6); and

every award made by it under section 96.

The Tribunal Registrar shall file a copy of every award made to the

An award made under subsection 91(6) or section 96 shall —

subject to section 98, be final and binding on all parties to the proceedings; and

be deemed to be an order of a court and be enforced accordingly by any party to the proceedings.

For the purpose of paragraph (1)(b), in any case where the award made by the Tribunal has not been complied with, the Tribunal Registrar shall send a copy of the award made by the Tribunal to the court having jurisdiction in the place to which the award relates or in the place where the award was made, and the court shall cause the copy of the award to be recorded.

If there is shown to be serious irregularity affecting the award, the High Court may —

remit the award to the Tribunal, in whole or in part, for reconsideration; or

set the award aside in whole or in part.

For the purpose of this section, “serious irregularity” means an irregularity of one or more of the following kinds which the High Court considers has caused substantial injustice to the applicant:

failure by the Tribunal to comply with section 92;

failure of the Tribunal to deal with all the relevant issues that were put to it; or

uncertainty or ambiguity as to the effect of the award.

The Tribunal may, at the conclusion of the proceedings before it, order that any document, record, material or other property produced during the proceedings be delivered to the rightful owner.

Where no person has taken delivery of the document, record, material or other property referred in subsection (1) after a period of six months, the ownership in the document, record, material or other property shall be deemed to have passed to and become vested in the Government.

If the Chairman or any member of the Tribunal has any direct or indirect interest in any proceeding, he shall disclose to the Tribunal the fact of his interest and the nature of that interest.

A disclosure under subsection (1) shall be recorded in the minutes of the proceeding in which the disclosure was made and, after the disclosure, the Chairman or the member shall not take part in the deliberation or decision of the Tribunal.

Failure of disclosing any interest under subsection (1) shall —

invalidate any decision made by the Tribunal in relation to that proceeding; and

cause the appointment of the Chairman or member of the

The Commissioner may, in writing, appoint any officer of the local authority or public officer as authorized officer to exercise the powers of enforcement under this Enactment.

Any such officer shall be deemed to be a public servant within the meaning of the Penal Code [Act 574].

Whenever an authorized officer exercises any of his powers under this Enactment, he shall, on demand, produce to the person against whom the power is being exercised the authority card issued to him under subsection (1).

inspecting any book, register, document or other record; or

verifying the accuracy of any book, register, document or other record or any information given to an authorized officer.

The authorized officer may, in relation to an investigation in respect of any offence committed under this Enactment, exercise all or any of the powers in relation to police investigation in any seizable offence, except the power to arrest without warrant, given under the Criminal Procedure

any premises have been used for or are about to be used for;

there is any premises, evidence necessary to the conduct of an investigation into, commission of an offence under this Enactment, the Magistrate may issue a warrant authorizing any authorized officer named in the warrant, to enter the premises at any reasonable time by day or by night, with or without assistance, and if need be by force.

Without affecting the generality of subsection (1), the warrant issued by the Magistrate may authorize the Commissioner or authorized officer to —

search and seize and detain any book, register, document or other record;

inspect, make copies of, or take extracts from the premises, any book, register, document or other record;

take possession of, and remove from the premises, any book, register, document or other record so seized and detain it for such period as may be necessary;

search any person who is in, or on, such premises and for the purposes of the search, detain the person and remove him to such place as may be necessary to facilitate the search, and seize and detain any book, register, document or other record found on the person; or

make such inquiry as may be necessary to ascertain whether the provisions of this Enactment have been complied with.

An authorized officer may, in the exercise of his powers under this section, if it is necessary so to do ––

break open any outer or inner door of the premises or any fence, enclosure, gate or other obstruction to the premises, in order to effect entry into the premises;

remove by force any obstruction to entry, search, seizure or removal as he is empowered to effect under this section; and

detain any person found in the premises until the search has been completed.

No person shall be searched except by another person of the same gender, and such search shall be conducted with strict regard to decency.

If, by reason of its nature, size or amount, it is not practicable to remove any book, register, document or other record seized under this

Any person who, without lawful authority, breaks, tampers with or damages the seal referred to under subsection (1) or removes the book, register, document or other record seized under seal or attempts to do so, commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three months or to both.

For the purposes of this section, an authorized officer shall be provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of computerized data.

The list prepared in accordance with subsection (1) shall be delivered to the occupier of the premises where the book, register, document or other record seized is found.

Where the seizure is made in or from any premises which is unoccupied, the authorized officer shall whenever possible post the list of the things seized conspicuously at the premises.

An order for the forfeiture of any book, register, document or other record shall be made if it is proved to the satisfaction of the court that an offence under this Enactment has been committed and that any book, register, document or other record were the subject matter of or was used in the commission of the offence, even though no person may have been convicted of such offence.

If there is no prosecution with regard to any book, register, document or other record seized under this Enactment, such book, register, document or other record shall be taken and deemed to be forfeited at the expiration period of one calendar month from the date of service of a notice to the last known address of the person from whom the book, register, document or other record were seized indicating that there is no prosecution in respect of such book, register, document or other record unless before the expiration of that period a claim thereto is made in the manner set out under subsections (6), (7), (8) and (9).

If no claim is made under subsection (6) within one calendar month from the date of service of the notice referred to under subsection (3), the book, register, document or other record seized under this Enactment shall be taken and deemed to be forfeited at the expiration of that period.

Any person asserting that he is the owner of any book, register, document or other record referred to under subsection (3) and that it is not liable to forfeiture may personally or by his agent authorized in writing, give written notice to the authorized officer in whose possession such book, register, document or other record are held that he claim such book, register, document or other record.

On receipt of the notice referred to under subsection (5), the authorized officer shall refer the claim to a Magistrate.

The Magistrate to whom a matter is referred under subsection (6)

the person asserting that he is the owner of any book, register, document or other record; or

the person from whom the book, register, document or other record were seized, to appear before him, and when they appear or they fail to appear, due service of the summons having been proved, the Magistrate shall proceed to the examination of the matter.

If it is proved that an offence under this Enactment has been committed and that any book, register, document or other record were the subject matter of or were used in the commission of such offence, the

Any book, register, document or other record forfeited or deemed to be forfeited shall be delivered to the Commissioner and shall be disposed of in such manner as the Commissioner thinks fit.

If the person refuses or fails to attend as so required, the authorized officer may report such refusal or failure to a Magistrate who shall issue a summons to secure the attendance of such person as may be required by the order made under subsection (1).

The person examined under subsection (1) shall be legally bound to answer all questions relating to such case put to him by the authorized officer, but he may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge, penalty or forfeiture.

A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to the questions.

The authorized officer examining a person under subsection (1) shall first inform the person of the provisions of subsections (2) and (3).

A statement made by any person under this section shall, wherever possible, be reduced into writing and signed by the person making it or affixed with his thumbprint, as the case may be —

after it has been read to him in the language in which he made it; and

after he has been given an opportunity to make any correction he may wish.

refuses any authorized officer access to any premises which the authorized officer is entitled to have under this Enactment or in the execution of any duty imposed or power conferred by this

refuses to give any authorized officer any information relating to an offence or suspected offence under this Enactment or any other information which may reasonably be required of him and which he has in his knowledge or power to give;

assaults, obstructs, hinders or delays any authorized officer in effecting any entry which the authorized officer is entitled to effect under this Enactment or in the execution of any duty imposed or power conferred by this Enactment; or

fails to give reasonable facilities or assistance to any authorized officer in the performance of his duties under this Enactment, commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

provides or causes any person to provide any information or document to the Commissioner, Tribunal or authorized officer which he knows or has reasons to believe is false or misleading; or

makes in writing or signs any document required by this

destroys, conceals, mutilates or alters; or

sends, attempts to send or conspires with any other person to remove from his premises or send out of Sabah, any book, register, document or other record kept or maintained with intent to defraud authorized officer or to prevent, delay or obstruct the carrying out of an investigation or the exercise of any power by the authorized officer under this Enactment commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or imprisonment for a term not exceeding one year or to both.

No person shall knowingly furnish a translation under subsection

which is not an accurate, faithful and true translation, or knowingly make a translation under that subsection which is not accurate, faithful and true.

Any person who contravenes subsection (2) commits an offence and shall on conviction, be liable, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

If any book, register, document or other record which is in evidence or is liable to inspection in any civil or criminal proceedings whatsoever contains any entry in which any informer is named or described or which might lead to his discovery, the court shall cause all such entries to be concealed from view or to be obliterated in so far as may be necessary to protect the informer from discovery.

If in a trial for any offence under this Enactment the court, after full inquiry into the case, is of the opinion that the informer willfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or if in any other proceedings the court is of the opinion that justice cannot be fully done between the parties to the proceeding without the discovery of the informer, it shall be lawful for the court to require the production of the original complaint, if in writing, and permit an inquiry and require full disclosure concerning the informer.

the court by which a person is convicted of the original offence may fix a reasonable period from the date of conviction for the person to comply with any direction given by the court; and

where the court has fixed such period, the daily penalty is not recoverable in respect of any day before the period expires.

on the ceiling that forms part of the interior of the parcel, common property or precinct common property, as the case may be, which is directly below the upper floor parcel, common property or precinct common property; or

on any furnishing material, including plaster, panel or gypsum board attached, glued, laid or applied to the ceiling that forms part of the interior of the parcel, common property or precinct common property, as the case may be, which is directly below the upper floor parcel, common property or precinct common property.

In determining the cause and the party responsible to rectify any defects, the following matters shall be taken into consideration:

the presumption under subsection (1) that the defect is caused by, due to or as a result of the upper floor parcel above the affected parcel, common property or precinct common property;

any defect in any water meter, water pipe, drainage and sewerage pipes, gas meter, duct and pipe that provides service to more than one parcel is a defect of the common property or the relevant precinct common property;

any defect in any water meter, water pipe, drainage and sewerage pipes, gas meter, duct and pipe that provides service only to one parcel is a defect of that parcel, even though the pipes, ducts or meters may be situated in common property, precinct common property or through another parcel; or

any defect of any parcel, common property or precinct common property during the defect liability period of the parcel which is due to the defective workmanship or materials or that construction was not carried out in accordance to the latest plans approved by the appropriate authorities, shall be the responsibility of the developer.

Where a parcel is affected by damage to a party wall, the provisions in subsection (1) and (2) shall apply.

For the purposes of this section, a “party wall” means a wall that is located between separate parcels or located between a parcel and the common property, or the precinct common property, as the case may be.

The Minister may prescribe regulations to provide for the procedural administration of this section.

Save as in the occurrence of an event stipulated in section 43 where there is a judgment sum entered into against the management corporation, the management corporation shall immediately pay the judgement sum from its maintenance account but, in the event that there are insufficient funds in the maintenance account, the council of the management corporation shall levy a special contribution from all the purchasers in the building sufficient to cover the judgment sum without requiring a resolution of the general meeting.

personally;

by registered post addressed to the last known address of business, parcel or residence of the person to be served;

by attaching the notice or order at a prominent part of the last-known address of business, parcel or residence of the person to be served; or

by email or other electronic means and by displaying the notice or order on a notice board in the building accessible by the purchaser.

Where service is effected under paragraphs (a), (b) or (c), it shall also be effected under paragraph (d).

No agreement, contract or arrangement, whether oral or wholly or partly in writing, entered into after the commencement of this Enactment shall operate to annul, vary or exclude any of the provisions of this

Without prejudice to the generality of subsection (1), such regulations may be made for all or any of the following purposes:

to prescribe any matter which is required under this

to provide for the forms and certificates required to be issued under this Enactment;

to provide for proper standards of maintenance and management in respect of buildings, common property or precinct common property;

to prescribe offences which may be compounded;

to prescribe the fees and charges to be paid in respect of any matters under this Enactment;

to provide for the procedures in the preparation of plans and documents for the purposes of this Enactment and the lodgment and registration of such plans and documents under this Enactment;

to provide for the any matter relating to the Tribunal;

to provide generally for the performance of the functions, the exercise of the powers and the discharge of duties of the developer, management corporation or subsidiary management corporation under the provisions of this

The regulations made under subsection (2) may prescribe any act in contravention of the regulations to be an offence and may prescribe penalties of a fine not exceeding two hundred fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both for such offence.

The Minister may, in any order made under subsection (1), make such incidental, consequential or supplementary provision as may be necessary or expedient.

If a document is electronically filed or submitted with the

The Commissioner or the Tribunal, as the case may be, may by electronic means, issue or publish, as the case may be, any information, document or certificate which is to be issued under this Enactment.

Any information, document or certificate which was electronically issued or published by the Commissioner or the Tribunal, as the case may be, shall be a true extract and shall be admissible as prima facie evidence of matters specified in that information, document or certificate, copy or extract.

may be charged severally or jointly in the same proceedings with the body corporate; and

if the body corporate is found guilty of the offence, shall be deemed to be guilty of that offence unless, having regard

that the offence was committed without his knowledge, consent or connivance; and

that he had taken all reasonable precautions and exercised due diligence to prevent the commission of the offence.

Where any person would be liable to any punishment or penalty under this Enactment for any act, omission, neglect or default committed—

by that person’s employee in the course of his employment;

by that person’s agent when acting on behalf of that person;

by the employee of that person’s agent when acting in the course of his employment with that person’s agent acting on behalf of that person, that person shall be liable to the same punishment or penalty for every such act, omission, neglect or default of that person’s employee or agent, or of the employee of that person’s agent.

An offer under subsection (1) may be made at any time after the offence has been committed but before any prosecution for it has been instituted.

If the amount specified in the offer is not paid within the time specified in the offer, or such extended time as the Commissioner may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

Where an offence has been compounded under subsection (1), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any book, register, document or other record in connection with the offence may be released or forfeited by the Commissioner in accordance with the terms and conditions of the compound.

All sums of money received under this section shall be deposited into the State Consolidated Fund.

Any person who contravenes any terms and conditions of the order in subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

the Commissioner, such other officers appointed under section 4 or any authorized officer for or on account of or in respect of any act ordered or done for the purpose of carrying into effect this Enactment;

Chairman, Deputy Chairman or any members of the

Tribunal Registrar or such other officers and staff of the

any other person for any act done or purported to be done by him under the order, direction or instruction of any person referred to under paragraphs (a), (b) and (c), if the act was done in good faith and in a reasonable belief that it was necessary for the purpose intended to be served by it and for the carrying into effect the provisions of this Enactment.

Nothing in this section shall exempt any person from liability for any act or omission which was done negligently, fraudulently or in bad faith.

Nothing in this Enactment shall affect the validity of any act done under the Land (Subsidiary Title) Enactment 1972, before the date of coming into operation of this Enactment.

Any person who, immediately before the date of coming into operation of this Enactment, is appointed under the Land (Subsidiary Title)

All accounts or funds established by the developer or any management corporation before the the date of coming into operation of this Enactment shall be deemed to have been established under this

Where any such account or fund is held in the name of the developer, the developer shall, upon the establishment of the management corporation under this Enactment, transfer the account or fund into a maintenance account opened in the name of the management corporation.

Any notice, order, action or other document prepared, issued or made under Land (Subsidiary Title) Enactment 1972, shall, in so far as it is consistent with the provisions of this Enactment, be deemed to have been prepared, issued or made under this Enactment.

Any decision made under the Land (Subsidiary Title) Enactment 1972, shall, in so far as it is consistent with the provisions of this Enactment, be deemed to have been made under this Enactment.

Any management corporation established under the Land

Notwithstanding subsection (1), any existing by-laws or mutual covenants under the Housing Development (Control & Licensing)

Share units attaching to each parcel shown in the existing management corporation register established under Land (Subsidiary Title)

construed as voting rights under this Enactment;

deemed allotted to the purchaser of the said parcel under this Enactment; and

duly converted and calculated according to the prescribed formula in the prescribed manner.

We certify that :

The monthly maintenance contribution payable for the above parcel is RM

The monthly sinking fund contribution payable for the above parcel is RM

The time and manner of payment of the maintenance and sinking fund contribution is

The outstanding arrears of maintenance contributions as at the date hereof amount to RM ............................................;

The outstanding arrears of sinking fund contributions as at the date hereof amount to RM ............................................;

The total interest outstanding as at the date hereof in respect of the above parcel amounts to RM ............................................. ;

The amount of any charges or penalties is RM ………………………........

Subject to the provisions of this paragraph and to any regulations or by-laws made under this Enactment, every management corporation shall have a council which shall

Where there are subsidiary management corporations, each subsidiary management corporation shall be represented by one member from the subsidiary council appointed by the subsidiary council to sit on the council of the management corporation in addition to the number of members as determined by the management corporation under subparagraph (1).

Notwithstanding subparagraph (1), where the management corporation has not more than three purchasers, the council of the management corporation shall consist of all the purchasers who are natural persons, or in the case where the purchaser is a company, society, statutory body or other body, by its nominee.

Where all the parcels in a building are owned by one purchaser, the sole purchaser may make any decision that a duly convened council may make under this Enactment, and any such decision shall be deemed to be a decision of the council of the management corporation.

Save as the representatives from each subsidiary management corporation, all other members of the council shall be elected at each annual general meeting of the management corporation.

The council shall elect from among its members a chairman, secretary and treasurer, all of whom shall be natural persons, immediately after the conclusion of the general meeting at which the council members are elected, provided that —

no member shall hold the same office for more than two consecutive years, unless the management corporation has fifty or fewer members; and

no member shall hold more than one office at the same time, unless the council only has one or two members.

Where the management corporation engages the services of a registered property manager, that registered property manager shall perform the role as secretary to the management corporation without limitation as to their term of office, and shall attend all council and general meetings but shall have no vote at such meetings.

All the members of the council of a management corporation shall retire from office at the conclusion of the next annual general meeting but a retiring member of the council shall be eligible for re-election.

A person shall not be eligible for election as a member of the council of a management corporation unless he is an individual of at least eighteen years of age and who —

is a purchaser or co-purchaser of a parcel;

is the nominee of a purchaser of a parcel which is a company, society, statutory body or any other body; or

For the avoidance of doubt, the following persons shall not be eligible for election:

Notwithstanding subparagraph (9), an individual referred to in that subparagraph shall not be eligible for election as a member of the council of a management corporation if, on the seventh day before the date of election —

where he is a purchaser or co-purchaser of a parcel, any contributions, interest or other charges as at the date to be determined by the management corporation are in arrears in respect of that parcel or any other parcel under the same purchase; or

where he is the appointed representative of a purchaser of a parcel which is a company, society, statutory body or any other body, any contributions, interest or other charges as at the date to be determined by the management corporation are in arrears in respect of that parcel or any other parcel under the same ownership.

An absent purchaser shall not be nominated for election as a member of the council unless he has appointed a proxy and has given his written consent to be nominated and elected as a member of the council.

Notwithstanding the provisions of this paragraph, the developer shall, from the date of establishment of the management corporation until the first annual general meeting of the management corporation, make the council as its sole member acting in trust for the entire membership of the management corporation.

if he resigns;

if he dies;

if he becomes a bankrupt;

if he is no longer a purchaser;

if he has been convicted on a charge in respect of —

an offence under any law relating to corruption;

an offence under this Enactment; or

any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

if his conduct, whether in connection with his duties as a member of the council or otherwise, has been such as to bring discredit on the council;

if he is of unsound mind or otherwise incapable of discharging his duties;

in the case of the chairman, if he absents himself from three consecutive scheduled meetings of the council without the leave of the council;

in the case of a member of the council other than the chairman, if he absents himself from three consecutive meetings of the council without the leave in writing of the chairman;

in the case where the purchaser of the parcel is a company, society, statutory body or any other body, as the case may be, if he is by an ordinary resolution removed as the representative of the company, society, statutory body or any other body;

if he is in default of payment of any contribution to the management corporation (including interest) for a continuous period of three months;

in the case of a member of the council, if he commits a serious breach of the by-laws and has failed to remedy the breach, if the breach is capable of being remedied within fourteen days of the date of receipt of notice from the management corporation; or

if he or the company, society, statutory body or any other body that he represents engages a lawyer to take legal action against the management corporation.

Within fourteen days of the occurrence of any of the events in subparagraph (1)

Except where the council consists of all the purchasers, the management corporation may, at any time, by an ordinary resolution at an extraordinary general meeting remove any member of the council from office and subject to subparagraph 3(10) appoint another purchaser in his place to hold office until the next annual general meeting.

A member of the council may resign his office at any time in writing under his hand addressed to the management corporation.

Where a vacancy in the membership of the council occurs either because the annual general meeting was unable to elect members to all the positions available or because of any reason otherwise than by operation of subparagraph (3), the remaining members may, subject to subparagraphs 3(9), 3(10) and 3(11) appoint another purchaser to be a member until the next annual general meeting.

In the event that all the members of the council resign they shall continue as a pro tem council and shall call an extraordinary general meeting for the purpose of electing a replacement council within two weeks of such resignation.

The chairman shall call for a meeting if requested to do so by the Commissioner or by at least two members of the council, failing which the Commissioner may appoint any member of the council to convene the meeting.

Notice of every meeting of the council shall be given to all members of the council not less than seven days before the date appointed for the meeting and such notice shall be displayed on the notice board of the management corporation.

The requirement in subparagraph (3) shall not prevent a meeting from being called at shorter notice provided that there is consent from all the council members.

Every meeting of the council shall be presided over by the chairman of the council, and in the absence of the chairman, the members of the council who are present may elect one of them to chair such meeting.

Questions arising at meetings shall be decided by a simple majority vote, and if on any question to be determined by the council there is equality of votes, the chairman shall have a casting vote.

Subject to subparagraph (5), the council may regulate its own procedure at meetings.

The provisions of this paragraph shall not apply to a management corporation which only has one purchaser.

The Commissioner may require the council to give to each purchaser a copy of the minutes of the council meetings.

The minutes of the meeting signed by the chairman of the meeting and the secretary shall be admissible in any legal proceedings as prima facie evidence of the facts stated in them without further proof.

The council shall —

The council shall prepare for each annual general meeting, the audited statement of accounts of the management corporation and the management corporation’s income and expenditure.

The council shall, within twenty-eight days after the general meeting, file with the Commissioner certified true copies of ––

The council shall within twenty-eight days of a general meeting extend copies of the minutes of the meeting to all purchasers or display the minutes of the meeting on the notice board of the management corporation.

The accounts of the management corporation shall be audited annually by an approved company auditor appointed by council.

The council shall permit the Commissioner at all reasonable times, full and free access to accounting and other records of the management corporation, and permit the Commissioner to make copies or make extracts from any such accounting or other records.

Notwithstanding the provisions of the Limitation Ordinance 1952 ––

the management corporation shall maintain in perpetuity an archive of minutes, circulars, all building plans of whatever nature and correspondence with the authorities;

the council may decide policy from time to time with regard to retention times for any classes of records, including financial records, not referred to in subsubparagraph (a) beyond seven years or any statutory time limit exceeding seven years;

during the developer’s management period all records are to be retained for handover to the council following the first annual general meeting.

Any records exceeding 7 years old may be archived by way of digital scan subject to an ordinary resolution of the management corporation which may make stipulations regarding data back-up protocols.

A person who has possession or control of ––

any records, books of account or keys belonging to a management corporation;

the Register of Purchasers kept by a management corporation; or

For the purpose of subparagraph (1), a member of the council shall be deemed to have an interest in the matter under discussion if he has interest in any company carrying on activities similar or related to the matter under discussion.

A disclosure under subparagraph (1) shall be recorded in the minutes of the council and, after the disclosure, the member having an interest in the matter ––

shall not take part nor be present in any deliberation or decision of the council; and

shall be disregarded for the purpose of constituting a quorum of the council.

No act or proceedings of the council shall be invalidated on the ground that any member of the council has contravened the provisions of this paragraph.

The disclosure of interest of council members shall apply in relation to matters of the council, and ––

where the disclosure of any interest causes the council being unable to achieve a quorum; or

where it is necessary for a council members who has disclosed an interest to participate in any discussion or decision of the council, the matter shall be referred to the general meeting of the management corporation and shall be decided by special resolution.

For the avoidance of doubt, matters of the council in subparagraph (5) shall include any agreement for the supply of services, equipment or materials to the management corporation but shall not include matters under consideration by the council of the management corporation which relates exclusively to the affairs of a subsidiary management corporation.

An annual general meeting of the management corporation shall be held in each calendar year and not more than fifteen months after the holding of the last annual general meeting.

The holding of any annual general meeting out of time in breach of this paragraph shall not affect the validity of the annual general meeting.

The requirement to hold annual general meetings shall not apply in the following circumstances:

where the management corporation has only one purchaser; or

where the management corporation has any number of purchasers who together are the undivided share purchasers of every parcel of the building.

a motion to confirm the minutes of the last general meeting;

to review matters arising from the last general meeting;

a motion to accept the annual audited accounts and financial statements;

to receive a statement of key financial information;

a motion to appoint an auditor for the current year of accounts;

to receive details of each insurance policy held by the management corporation;

to receive the registered property manager’s annual report (where a registered property manager is engaged by the management corporation);

to decide on any other motions of which due notice has been given;

to discuss any other matter but without any formal motion;

to determine the number of members of the council; and

to elect the council where there are more than three purchasers.

Notwithstanding the documents that have been previously distributed with the notice of the meeting pursuant to subparagraph 15(5), copies of the minutes of the last general meeting, the latest audited annual accounts and the auditor’s report are to be made available to purchasers attending the meeting and a statement of key financial information based on the management accounts as at a date not more than eight weeks before the meeting, which is signed by the treasurer and the registered property manager (if appointed), shall also be distributed to purchasers present at the meeting.

The council shall convene an extraordinary general meeting upon —

a requisition in writing made by the purchasers entitled to vote who together hold —

at least one hundred parcels in the building, whichever is lower;

receiving a direction in writing from the Commissioner for the transaction of such business as the Commissioner may direct; or

such other occasion as it thinks fit.

The requisition under subparagraph (2) shall state the objects of the meeting and shall be signed by the requisitionists and deposited at the registered office of the management corporation, and may consist of several documents in like form each signed by one or more requisitionists.

The extraordinary general meeting shall be held as soon as practicable but in any case, not later than six weeks after —

the requisition has been deposited at the registered office of the management corporation under subparagraph (3);

receiving a direction in writing from the Commissioner under subsubparagraph(2)(b); or

the council’s decision to hold an extraordinary general meeting pursuant to subsubparagraph (2)(c) is recorded in writing.

If —

the Commissioner is satisfied that the council has not been properly constituted; or

the council fails to convene the extraordinary general meeting within the time period stipulated in subparagraph (4), the Commissioner may authorise in writing any person to convene an extraordinary general meeting for such purposes as may be approved by the Commissioner.

In the case of a meeting convened pursuant to subsubparagraph (5)(b), all costs incurred by the person in convening the meeting shall first be paid by the management corporation to that person and such costs shall be recoverable as a debt due from all the members of the council personally to the management corporation.

All such motions and council nominations shall be made in writing and shall be delivered to the registered address of the management corporation by a date specified in the notice, being not later than seven days before the planned date of the issuance of the notice of meeting.

In the case of nominations for election to the council, each nomination shall be signed by a proposer and a seconder and by the nominee accepting such nomination.

Co-purchaser may be a signatory to a proposed motion under subparagraph (1)

Upon receipt of any motion under subparagraph (1), the council shall include the motion in the agenda of the planned meeting.

At least fourteen days’ notice for ordinary business of any general meeting shall, inclusive of any public holidays arising during the notice period, be given to every purchaser.

Notwithstanding subparagraph (6), where the agenda of a general meeting includes any business requiring a special resolution, the minimum notice period shall be increased to twenty one days, and where it includes any business requiring a unanimous resolution, the minimum notice period shall be increased to thirty days.

Every notice for a general meeting shall include but not be limited to the following:

the place, date and time for the meeting;

each proposed resolution to be considered at the meeting;

where the meeting is in relation to election of council members, a list of the nominations received by the management corporation.

In the case of an annual general meeting, the notice in subparagraph (6) shall also —

be accompanied by a copy of the minutes of the last annual general meeting;

be accompanied by a copy of the audited accounts together with the auditor‘s report on the accounts of the management corporation; and

No motion shall be submitted at a general meeting unless —

notice of the motion has been given in accordance with this paragraph;

the motion amends a motion of which notice has been so given.

Apart from formal nominations to council notified together with the notice for the meeting, additional oral nominations may be invited at the time of holding the election in the event that there were insufficient nominees to fill all the available council positions and are to be accepted provided the nominee is present and agrees and the proposer, seconder and nominee are purchasers who are eligible to vote in their own right.

any purchaser or, where the purchaser is unable to attend in person, his proxy;

staff of the management corporation; or

any registered property manager or consultant engaged by the management corporation.

For the avoidance of doubt, attendance at general meetings is restricted to the classes of person referred to in subparagraph (1) and shall not include family members, professional advisors or other invitees of attendees or any attendee, nor a proxy where the purchaser appoints such proxy to attend the meeting on his behalf, unless the proxy is otherwise entitled to attend in his own right.

The council of the management corporation shall put up a list of the names of the persons who are entitled to vote at a general meeting on the management corporation notice board at least forty eight hours before the general meeting.

If within half an hour after the time appointed for a general meeting a quorum is not present, those purchasers present who are entitled to vote shall constitute a quorum provided there are at least two purchasers present.

Where a special or unanimous resolution is intended to be passed in a general meeting and a quorum of purchasers is not present after sixty minutes after the time appointed for a general meeting has passed, the purchasers present shall constitute a quorum.

Notwithstanding subparagraph (1), if the management corporation engages a registered property manager to manage the building, the chairman of the council shall have the authority to direct that such registered property manager to chair the meeting on his behalf.

At a general meeting of a management corporation, its chairman may rule that a motion submitted to the meeting is out of order if he considers that the motion, if carried out, would conflict with this Enactment or the by-laws or would otherwise be unlawful or unenforceable.

Unless a poll is demanded, a declaration by the chairman that a resolution has been carried on a show of hands shall be conclusive evidence of the fact without proof of the number or proportion of votes recorded in favour of or against the resolution.

A proxy shall be entitled to vote on a show of hands or by poll.

The purchaser or his proxy demanding the poll may withdraw such demand.

Where a poll is taken, it shall be taken in such manner as the chairman thinks fit, and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.

In the case of an equality of votes, whether on a show of hands or a poll, the chairman shall be entitled to a casting vote.

Election of council members shall be by poll by the use of voting slips.

An instrument appointing a proxy if made under the hand of an attorney shall be accompanied with a copy of the power of attorney.

The instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll.

No person shall act as proxy except as follows:

No purchaser shall appoint more than one proxy notwithstanding the number of parcels he owns.

The instrument appointing a proxy shall be deposited at the registered address of the management corporation not less than forty-eight hours before the time for holding any meeting or any adjournment of the meeting at which the person named in the instrument proposes to vote, failing which the proxy shall not be entitled to attend or vote in the meeting.

In the case of the developer, their voting rights shall be limited to only parcels that they have not sold.

A purchaser shall not be entitled to vote if, on the seventh day before the date of the meeting, all or any contributions or any other money due and payable to the management corporation in respect of his parcel are in arrears.

In the absence of a proxy, co-purchasers shall not entitled to vote on a show of hands, except where unanimous resolution is required, provided that any one co-purchaser may demand a poll.

On a poll, each co-purchaser shall be entitled to such number of the votes attaching to his parcel as is propotionate to his interest in the parcel.

if the purchaser is a company, by its representative duly authorised under its seal or the hand of its director, or by any duly authorised attorney or by its appointed proxy;

if the purchaser is a company where a receiver or a receiver and manager is appointed, by the receiver or the receiver and manager or a person duly authorized by the receiver or the receiver and manager or by its appointed proxy;

if the purchaser is a society, by any one of its office bearers or any person duly authorised by the society or by its appointed proxy;

Any instrument appointing representatives shall be deposited at the registered address of the management corporation not less than forty-eight hours before the time for holding any meeting or any adjournment of the meeting at which the person named in the instrument proposes to vote, failing which such representatives shall not be entitled to attend or vote in the meeting.