Clause 53

This section applies where —

the Commissioner receives a written request for an official manager to be appointed under this section —

from one or more persons entitled to vote in respect of one or more lots comprised in a strata title plan, the share value or total share value of which is at least 20% of the aggregate share value of all the lots whose subsidiary proprietors comprise the management corporation constituted for that strata title plan; or

from not less than 25% of the total number of subsidiary proprietors of the lots whose subsidiary proprietors comprise the management corporation constituted for that strata title plan; and

the Commissioner is satisfied that the management corporation or the council of the management corporation refuses or is unable to carry out a duty under this Act that must be urgently carried out in order to remove any danger to the health or safety of subsidiary proprietors and occupants of lots in that strata title plan.(2) In a case where this section applies, and the Commissioner is of the opinion that it is inappropriate for the management corporation concerned to continue without official management, the Commissioner may, by order in the Gazette, place the management corporation under official management.(3) Before placing a management corporation under official management, the Commissioner must give at least 7 days’ notice in writing to the chairperson of the management corporation concerned —

stating that the Commissioner intends to place the management corporation under official management; and

specifying the time (not more than 7 days after the date of service of the notice on the management corporation) within which written representations may be made to the Commissioner by or on behalf of the management corporation with respect to the proposed official management.(4) When the Commissioner places a management corporation under official management, all members of the council of the management corporation are suspended from office unless the Commissioner indicates otherwise, and the Commissioner must appoint a suitable person to manage the affairs, business and property of the management corporation (called in this Act an official manager) —

for a period of 15 months; or

until the date of the holding of the next general meeting of the management corporation for the election of the council of the management corporation,whichever period is shorter.(5) Any decision of the Commissioner under subsection (2) is final.(6) An official manager ceases to manage the affairs, business and property of the management corporation when the Commissioner is satisfied that the reasons for the official manager’s appointment have ceased to exist or the appointment is earlier revoked by the Commissioner.(7) Where by reason of subsection (6), an official manager ceases to manage the affairs, business and property of a management corporation, the Commissioner must without delay cause to be published a notice to that effect —

in the Gazette; and

in such other manner as will secure adequate publicity for that ceasing.(8) This section and section 126B extend to apply in relation to a subsidiary management corporation which is constituted for any limited common property subject to a strata title plan —

as if the reference in this section to the management corporation for a strata title plan includes a reference to the subsidiary management corporation;

as if the reference in this section to the subsidiary proprietors of lots comprised in the strata title plan includes a reference to the subsidiary proprietors of lots for whose exclusive benefit the limited common property is designated on that strata title plan; and

as if the reference in this section to the council of a management corporation includes a reference to the executive committee of a subsidiary management corporation.Official manager126B.—

An official manager appointed under section 126A for a management corporation has full powers to transact any business of the management corporation and its council and to do anything else the management corporation and its council could have done but for the suspension of its members, including —

appointing a managing agent; and

disbursing moneys from the management fund and sinking fund in accordance with this Act.(2) However, an official manager —

must not direct a managing agent to carry out any improvement works to the common property; and

must have the Commissioner’s approval before the official manager enters into new contracts, or renews contracts, on behalf of the management corporation,and may apply to the Commissioner for directions on any matter arising in connection with the performance of the official manager’s functions.(3) An official manager appointed under section 126A for a management corporation may act in the official manager’s own name, or in the name of the management corporation, and despite section 25, may execute a document under the common seal of the management corporation.(4) The Commissioner may at any time fix the terms and conditions of the appointment of an official manager, including (whether or not the appointment of the person has terminated) the remuneration to be paid to the official manager.(5) The remuneration of an official manager appointed under section 126A for a management corporation is payable from the management fund of the management corporation.(6) Any decision of the Commissioner under subsection (4) is final.(7) No liability shall be incurred by an official manager as a result of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —

the exercise or purported exercise of any power under section 126A or this section; or

the performance or purported performance of any function or duty under section 126A or this section.”.