Malaysia legislation
Section 28
Section 28
(a)
the subdivided land or building is totally destroyed;
or
(b)
the subsidiary proprietors seek to demolish the subdivided land or building or, in the case of a subdivided land or building which has been partially destroyed, the remaining parts of the subdivided land or building; or
(c)
there is only one subsidiary proprietor, may be directed by comprehensive resolution conducted in accordance with the Strata Management Ordinance, 2019
[Cap. 76/2019], to take action to terminate the subdivision of building or land; and, subject to any order of the Court made under subsection (7), the management corporation if so directed shall lodge with the Superintendent a notification in the form as may be determined by the Director, together with the relevant issue document of title of the lot, issue documents of subsidiary title and a copy of the comprehensive resolution together with a certificate signed by the Commissioner certifying the receipt of the same filed with him by management corporation.
(2)
On receipt of a notification under subsection (1), the
Superintendant shall direct the Registrar to make necessary entry in the Register and the subsidiary register.
(3)
Upon such entry by the Registrar under subsection
(2)
—
(a)
the subdivision of land or building shall be terminated and the subsidiary proprietors shall cease to be the proprietors of the parcels; and
(b)
the management corporation shall become the proprietor of the lot as the trustee of the former proprietors.
(4)
Where the management corporation becomes proprietor of the lot under subsection (3)—
(a)
any charge on a parcel which existed immediately before the termination of the subdivision of land or building shall become a personal obligation of the chargor to pay to the chargee what is due under the charge;
(b)
each of the former proprietors shall continue to be a member of the management corporation, having the same
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voting rights as he had immediately before the termination of the subdivision of land or building;
(c)
the management corporation shall hold and manage the lot for the benefit of the former proprietors;
(d)
the former proprietors may by comprehensive resolution conducted in accordance with the
Strata
Management Ordinance, 2019 [Cap. 76/2019], direct the management corporation to transfer the lot to any person or body; and
(e)
the management corporation shall distribute any profits arising from its proprietorship of the lot, including any purchase money received on a transfer, to the former proprietors proportionately to the share units which they held immediately before the termination of the subdivision of land or building.
(5)
Notwithstanding the termination of a subdivided land or building under this section, the relevant book of the subsidiary register shall continue in existence while the management corporation remains the proprietor of the lot and may be used in evidence as a record of matters relating to the subdivided land or building before its termination.
(6)
Where the management corporation, having become the proprietor of the lot under subsection (3), transfers the lot in pursuance of a direction under subsection (4)(d)—
(a)
the corporation shall continue in existence for so long as is reasonably necessary to wind up its affairs and shall then cease to exist; and
(b)
the Registrar shall cancel the relevant book of the subsidiary register and the certificate of incorporation.
(7)
The Court, if it is satisfied that the justice of the case so requires—
(a)
may, on the application of the management corporation, a subsidiary proprietor or the chargee of a parcel, make an order—
(i)
directing the management corporation to take action under subsection (1) notwithstanding the absence of a comprehensive resolution; or
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(ii)
prohibiting the management corporation from taking action under that subsection notwithstanding a direction given by comprehensive resolution; and
(b)
where the corporation has transferred the lot in pursuance of a direction under subsection (4)(d), may, on the application of the management corporation, a former proprietor or a former chargee, make an order for the winding up of the corporation’s affairs.
(8)
In this section—
“former chargee” means the registered chargee of a parcel before the termination of the subdivided land or building;
“former proprietor” means the subsidiary proprietor of a parcel before the termination of the subdivided land and building.