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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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