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39. Establishment of management corporation.
(1) Upon the opening of a book of the strata register in respect of a
subdivided building and land there shall, by the operation of this section, come into
existence a management corporation consisting of all the parcel proprietors
including in the case of phased development, the proprietor of the
provisional block or blocks.
(2) The management corporation established by subsection (1) shall be
known by the name appearing in the book of the strata register relating to a
subdivided building and land, and shall be a body corporate having perpetual
succession and a common seal.
(2A) The management corporation may apply to the Registrar for a
certificate certifying that the management corporation is a body corporate
constituted under this Act on the day specified in the certificate.
(3) The management corporation may sue and be sued.
(4) The management corporation shall elect a council which, subject to
any restriction imposed or direction given by the management corporation at
a general meeting, shall perform the management corporation's duties and
conduct the management corporation's business on its behalf, and may for
that purpose exercise any of the management corporation's powers.
(5) The provisions of the Second Schedule shall have effect in relation
to the management corporation and its council.
40. Restrictions and responsibilities
imposed on management corporation during initial period.
(1) Notwithstanding any other provisions of this Act, the management
corporation shall not, during the initial period-
(a) amend its by-laws in such a manner that a
right is conferred or an obligation is imposed on one or more but not all,
proprietors or in respect of one or more, but not all, or provisional
blocks;
(b) borrow moneys or give securities; or
(c) enter into any maintenance or service contracts for any
periods extending beyond the expiration of the initial period.
(2) Without prejudice to any other remedy available against the original
proprietor, if a management corporation contravenes subsection (1), the
original proprietor shall be liable for any loss suffered by the management
corporation or any parcel proprietor as a result of the contravention and
the management corporation or any parcel proprietor may recover from the
original proprietor as damages for breach of a statutory duty, any loss
suffered by it or him in consequence of such contravention.
(3) The management corporation shall prepare proper
accounts under its name relating to all monies of the corporation with
regard to its income and expenditure during the initial period.
(4) The accounts of the management corporation shall be audited by a
registered auditor appointed by the original proprietor and the audited
accounts shall be presented to the Commissioner.
(5) On an application made by a parcel proprietor,
the Commissioner may make available the audited accounts for inspection at
all reasonable times.
40A. Transfer of ownership of strata
titles
(1)Any original proprietor or any person or body appointed by a court of
competent jurisdiction shall execute the transfer of strata titles to the
parcel proprietors within twelve months from the date of issue of strata
titles by the Land Administrator or any extended period approved by the
Director upon the opening of the strata register.
(2) Any purchaser shall execute complete documents of transfer of strata
titles within twelve months or any extended period approved by the Director
from the date of notice of transfer of strata titles issued by the original
proprietor or from the date of purchase of the parcel, whichever is the
later.
(3) Any original proprietor or any person or body appointed by a court of
competent jurisdiction or any purchaser who fails to comply with subsection
(1) or (2) shall be guilty of an offence and shall, on conviction, be liable
to a fine of not less than one thousand ringgit and not more than ten
thousand ringgit per parcel.
41. Duty of original proprietor to convene first annual general meeting.
(1) It shall be the duty of the original proprietor to convene the first
annual general meeting of the management corporation within one month after
the expiration of the initial period.
(2) If the original proprietor fails to comply with subsection (1), he
shall be guilty of an offence and shall be liable on conviction to a fine
not exceeding twenty-five thousand ringgit and to a
further fine not exceeding two thousand ringgit for each day the offence
continues to be committed
(3) Without prejudice to the provisions of subsections (1) and (2), if
the original proprietor fails to convene the first annual general meeting
within the specified period, the Commissioner may, on application by the
purchasers, a proprietor or chargee of a parcel, appoint a
person to convene the first annual general meeting of the management
corporation within such time as may be specified by the
Commissioner.
(4) The original proprietor shall give a written notice of the first
annual general meeting to all parcel proprietors constituting the management
corporation not less than fourteen days before the meeting.
(5) The agenda for the first annual general meeting shall include the
following matters:
(a) to decide whether to confirm, vary or extend insurances
effected by the management corporation;
(b) to decide whether to confirm or vary any amounts determined
as contributions to the management fund;
(ba) to determine the portion of contribution to the management
fund to be paid into the special account to be maintained under section
46;
(c) to determine the number of members of the council and to elect the
council where there are more than three proprietors;
(d) to decide whether to amend, add to or repeal the bylaws in force
immediately before the holding of the meeting; and
(e) to present the audited accounts of the
management corporation.
41A. Determination of contributions payable
during initial period.
(1) Where the first annual general meeting of a management corporation has not yet been convened, the proprietor
of the parcels or provisional blocks, if any, in the subdivided
building or land , whichever is applicable shall, commencing from the opening of the book of the strata
register pay to the management
corporation any sum determined by the original proprietor as the
contributions payable by the proprietors to the management fund of the
management corporation.
(2) Any proprietor who is not satisfied with the
sum determined under subsection (1) may apply to the Commissioner for a
review and the Commissioner may-
(a) determine the sum; or
(b) instruct the original proprietor to appoint a
registered property manager to recommend the sum payable and submit a copy
of a report to the Commissioner for his approval and the Commissioner shall
determine the sum payable as he thinks just and reasonable.
(3) The sum determined by the Commissioner pursuant
to paragraph (2)(a) or (b) shall be the amount deemed to be the amount
determined by the management corporation as the contributions payable by the
proprietors to the management corporation.
42. Ownership of common property and custody of issue document of title.
(1) The management corporation shall, on coming into existence, become
the proprietor of the common property and be the custodian of the issue
document of title of the lot.
(2) The management corporation shall have in relation to the common
property the powers conferred by the National Land Code on a proprietor in
relation to his land:
Provided that-
(i) except where it is specifically provided otherwise in this Act,
those powers may be exercised only on the authority of a unanimous
resolution; and
(ii) the corporation shall not have power to transfer any portion of
the common property which forms part of the building or of the land on
which the building stands.
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