LAND TITLES (STRATA) (AMENDMENT) BILL

12.45 pm

Order for Second Reading read.

The Minister for Law (Mr E.W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Land Titles (Strata) Act (Cap. 277) was enacted in 1967 to make provision for the issue of subsidiary strata certificates of title for separate units called "strata units" in high-rise developments and to incorporate a management corporation for each development to take over the maintenance and management of the development from the developer. A management corporation comprises the owners of all the strata units in a development and therefore the owners of these units called "subsidiary proprietors" have a say in the management of their development and its common property.

Sir, the Bill seeks to amend the Act for the purpose of providing solutions to problems which have come to light since its introduction. These are problems encountered by management corporations in the management and maintenance of the subdivided buildings and their common property. The Bill therefore seeks to make new provisions dealing with the internal management of the affairs of a management corporation, the management and control of the common property, the powers and duties of a management corporation and the enforcement of the rights of the subsidiary proprietors and of the management corporation.

The changes are introduced for the purpose of ensuring that subdivided buildings will be better managed. I will now highlight some of the new provisions.

Many strata units are owned by companies. At present, although these companies have been elected to serve on the management councils, the law does not expressly prohibit such companies from having different authorized personnel to attend meetings of management councils at different times. For better management of the affairs of the management councils, council members should, wherever possible, serve for a reasonable length of time. The Bill will require companies which are subsidiary proprietors to nominate individuals to represent them for election as members of such councils and these nominees when elected, will serve the management councils.

A management corporation will be required to establish a sinking fund to meet expenditure which will be incurred for major repairs and renovations. This fund is in addition to the management fund which a management corporation is now required to maintain.

Management corporations will also be given express powers to appoint managing agents to take charge of the management and administration of subdivided buildings and the affairs of a management corporation. The Act is now silent on this point.

The Commissioner of Buildings will also be empowered to appoint a managing agent for a management corporation when he is satisfied that the management corporation is not carrying out its duties or functions satisfactorily and that it is in the interests of the subsidiary proprietors of the development concerned or the creditors of the management corporation to appoint a managing agent.

The duties of subsidiary proprietors to their management corporations will be spelt out in greater detail in order to remove uncertainty.

Sir, this Bill has attracted considerable public interest and since it will affect the rights of property owners and mortgagees, it is proposed that the Bill be referred to a Select Committee of Parliament to allow these people to air their views and for a more detailed examination of the provisions of the Bill to be made.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time.

Resolved,

That the Land Titles (Strata) (Amendment) Bill be committed to a Select Committee consisting of Mr Speaker as Chairman and seven Members to be nominated by the Committee of Selection. - [Mr E.W. Barker].