Section 39
Restrictions during preliminary management period
of Strata Management Ordinance, 2019
—
Notwithstanding any other provisions of this
Ordinance, the developer shall, during the preliminary management period, hold all monies in the accounts required to be opened and maintained under this Chapter on trust for the subsidiary proprietors and shall not—
(a)
borrow monies or give securities; or
(b)
enter into any contract relating to the management and maintenance of any subdivided building or land and the common property in the development for any period extending beyond the expiration of the preliminary management period.
(2)
Without prejudice to any other remedy available against the developer, if any developer fails to comply with subsection (1), the developer shall be liable for any loss or damage suffered by the management corporation or any subsidiary proprietor as a result of the contravention, and the management corporation or any subsidiary proprietor may recover from the developer, as damages for each breach of a statutory duty, any loss suffered by it or him in consequence of such contravention.
(3)
Any person who fails to comply with subsection (1)
shall be guilty of an offence and shall, upon conviction, be punished with a fine not exceeding two hundred and fifty thousand ringgit or imprisonment to a term not exceeding three years or to both.
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