Clause 22

by deleting paragraph (b) of subsection (1) thereof and substituting therefor the following: —“(b)when on an application made by the management corporation, a subsidiary proprietor or a registered mortgagee, the court, on being satisfied that it is just and equitable that the subdivided building be deemed to have been destroyed after having considered —

the scheme and intent of this Act;

the probability of unfairness to one or more subsidiary proprietors if termination of subdivision is not ordered;

the rights and interests of the subsidiary proprietors as a whole; and

the probability of confusion and uncertainty in the affairs of the management corporation or the subsidiary proprietors if a declaration of destruction of the subdivided building is not made,makes a declaration to that effect.”;

by deleting the word “and” appearing at the end of paragraph (a) of subsection (4) thereof;

by deleting the full-stop appearing at the end of paragraph (b) of subsection (4) of this section and substituting therefor the expression “; and”;

by inserting immediately after paragraph (b) of subsection (4) thereof the following new paragraph: —“(c)all statutory easements implied under this Act shall cease to affect the registered land comprising the parcel or any part thereof.”; and

by deleting subsections (10), (11) and (12) thereof and substituting therefor the following: —“(10) Where a transfer of the parcel pursuant to subsection (5) of this section has been lodged with and registered by the Registrar, the management corporation shall continue in existence for the purpose of winding up its affairs.(11) The court may, on the application of the management corporation or its administrator, a former subsidiary proprietor or a former mortgagee, by order make provision for the winding up of the affairs of the management corporation and for the appointment of a liquidator to carry out the winding up.(12) Unless and until a liquidator has been appointed by the court for the purpose of carrying out the winding up of the management corporation, the council of the management corporation shall continue to perform the management corporation’s business for the purpose of winding up its affairs. On the appointment of a liquidator all the powers of the council of the management corporation shall cease and the liquidator shall have the power to carry on the management corporation’s business for the purpose of winding up its affairs.(13) On the management corporation being wound up —

every former subsidiary proprietor shall be liable to contribute to the assets of the management corporation to an amount sufficient for the payment of its debts and liabilities and the costs, charges and expenses of the winding up; and

the assets of the management corporation, if any, shall be distributed among the former subsidiary proprietors,in the same proportion as the proportion of contributions which such former subsidiary proprietors would have been liable for in accordance with section 17 of this Act.(14) The court may, on the application of a former subsidiary proprietor, a former mortgagee or the liquidator and on being satisfied that the affairs of the management corporation have been wound up, make an order that the liquidator be released and that the management corporation be dissolved and on lodgement of such order for registration under this Act, the Registrar shall then register and cancel the relevant record of the subsidiary strata land register.(15) In this section —“former mortgagee” means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, was the registered mortgagee of a lot, forming part of the subdivided building;“former subsidiary proprietor” means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, was the subsidiary proprietor of a lot, forming part of the subdivided building.”.