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56. Power of court when subdivided building is damaged.
(1) When a subdivided building is damaged but is not totally
destroyed, a court of competent jurisdiction on the application of the management
corporation, a parcel proprietor, or a registered chargee of any parcel, may
by order, settle a scheme for the reinstatement or the continued use of the
building in whole or in part and any such scheme may include provision for the
transfer of the interests of the proprietors of parcels which have been wholly
or partially destroyed to the other parcel proprietors in proportion to their
share units.
(2) In the exercise of its powers under subsection (1), the
court may make such orders as it deems necessary or expedient for giving effect
to the scheme, including orders-
(a) directing the application
of insurance moneys received by the management corporation in respect of damage
to the building;
(b) directing payment of money
by the management corporation or by the parcel proprietors or some or one
or more of them;
(c) directing such amendment
or replacement of the certified strata plan and such consequential amendment
or replacement of the strata register as the court thinks fit; and
(d) imposing such terms and
conditions as the court thinks fit.
(3) Where an application is made under subsection (1), any
insurer who has effected insurance on the building to which the application
relates (or on any part thereof) shall have the right to appear on the hearing
of the application.
57.
Termination of subdivision.
(1) The management corporation, where-
(a) the building is totally
destroyed; or
(b) the parcel proprietors
seek to demolish the building or, in the case of a building which has been
partially destroyed, the remaining parts of the building; or
(c) there is only one proprietor
for all the parcels,
may be directed by unanimous resolution to take action to
terminate the subdivision of the building; and, subject to any order of a court
of competent jurisdiction made under subsection (7), the management corporation
if so directed shall lodge with the Registrar a notification in Form 8 together
with the issue documents of title of the land and the parcels and of provisional
blocks, if any.
(2) On receipt of a notification under subsection (1) the
Registrar shall make a memorial of the notification in the register and the
strata register, and shall inform the Director of Survey that he has done so.
(3) On the making of a memorial under subsection (2) in respect
of a subdivided building-
(a) the subdivision shall be
terminated and the proprietors shall cease to be proprietors of the parcels
and provisional blocks; 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 the proprietor
of the lot under subsection (3)-
(a) any registered charge on
a parcel which existed immediately before the termination of the subdivision
shall be converted into 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 corporation, having the same voting rights
as he had immediately before the termination of the subdivision;
(c) the management corporation
shall hold and manage the lot for the benefit of the former proprietors;
(d) the former proprietors
may by unanimous resolution direct the management corporation to transfer
the lot to any one or more of the former proprietors or to any other 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 or provisional share units which they held immediately
before the termination of the subdivision.
(5) Notwithstanding the termination of a subdivision under
this section, the relevant book of the strata 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 subdivision 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 paragraph (d) of subsection (4)-
(a) the management corporation
shall continue in existence for so long as it 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 strata register.
(7) A court of competent jurisdiction, if it is satisfied
that the justice of the case so requires-
(a) may on the application
of the management corporation, a parcel proprietor or the registered chargee
of a parcel make an order-
(i) directing the management corporation to take action
under subsection (1) notwithstanding the absence of a unanimous resolution;
or
(ii) prohibiting the management corporation from taking
action under that subsection notwithstanding a direction given by unanimous
resolution; and
(b) where the management corporation
has transferred the lot in pursuance of a direction under paragraph (d)
of subsection (4), may on the application of the management corporation, a
former proprietor or a former chargee make an order for the winding up of
the affairs of the management corporation.
(8) In this section-
"former chargee" means a person who, or a body which, immediately
before the subdivision of a subdivided building is terminated under this section,
is the registered chargee of a parcel in the building;
"former proprietor" means a person who, or a body which, immediately
before the subdivision of a subdivided building is terminated under this section,
is the proprietor of a parcel in the building or of a provisional block on the
land on which the building is situated.
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