Section 41
Developer to establish sinking fund account in the name of management corporation
of Strata Management Ordinance, 2019
—
At the same time when the developer is required to open and maintain the maintenance account under section 40(1), the developer shall, open and maintain a sinking fund account in the name of the management corporation, with a bank or financial institution, into which shall be deposited the contribution to the sinking fund paid by the subsidiary proprietors.
(2)
The sinking fund account shall be used solely for the purposes of meeting the actual or expected capital expenditure in respect of the following matters:
(a)
the painting or repainting of any part of the common property;
(b)
the acquisition of any movable property for use in relation to the common property;
(c)
the renewal or replacement of any fixture or fitting comprised in any common property and any movable property vested in the management corporation;
(d)
the upgrading and refurbishment of the common property; and
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(e)
any other capital expenditure as the management corporation deems necessary.
(3)
Any developer who fails to comply with subsection (1) or
(2)
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 for a term not exceeding three years or to both.