Section 53
Duties and powers of subsidiary management corporation
of Strata Management Ordinance, 2019
—
Subject to subsection (2), a subsidiary management corporation shall have the same powers and duties as the management corporation with respect to any matter that relates solely to the limited common property designated for the exclusive benefit of all subsidiary proprietors comprising the subsidiary management corporation, and unless expressly otherwise provided, the provisions of Chapter 3 of this Part shall apply, with the necessary modifications, to subsidiary management corporation as they apply to the management corporation.
(2)
After the establishment of the subsidiary management corporation for the limited common property, the management corporation shall retain its powers and duties in matters concerning common property of the development which is not designated as limited common property.
(3)
For the purpose of carrying out management and maintenance of limited common property under subsection (1), the duties and powers of a subsidiary management corporation shall—
(a)
establish its own maintenance account and sinking fund account for the common expenses of its limited common property, including expenses related to its limited common property;
(b)
require subsidiary proprietors of parcels in the subsidiary management corporation to pay the maintenance charge, and contribution to the sinking fund;
(c)
enforce the by-laws relating to its limited common property; and
(d)
otherwise have the control, management and administration of its limited common property.
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(4)
A subsidiary management corporation shall not enter into any contract or sue in the name of the management corporation and the management corporation shall have no liability for such contracts made or debts or legal costs incurred by the subsidiary management corporation.
(5)
A subsidiary management corporation may obtain insurance only—
(a)
against risks that are not insured by the management corporation; or
(b)
for amounts that are in excess of amounts insured by the management corporation.
(6)
For the purposes of subsection (5), a subsidiary management corporation shall have the same insurable interest in its limited common property as the management corporation has in the common property.
(7)
Notwithstanding any other provision of this Ordinance, a subsidiary management corporation for any limited common property comprised in a development may manage and maintain—
(a)
a common property within that same development;
or
(b)
any other limited common property of another subsidiary management corporation within that development, upon such terms and conditions as may be agreed between the subsidiary management corporation and the management corporation or other subsidiary management corporation, as the case may be.