Savills News

Management Corporation has no powers to impose fines/charges/penalty on Subsidiary Proprietors

An application was made under section 101/105/106 of the Building Maintenance and Strata Management Act in respect of the development (name withheld).

The Management Corporation (MC) had made by-laws by special resolution restricting the use of fork lifts along the driveways for transportation of goods between the units. The fork lifts could only be used at the loading and unloading areas.

Another by-law in reference to the above had also been passed stating a fee of $200 per incident would be imposed for any violation of the above by-law for the use of the forklifts.

For servicing of vehicles in the development, similar by-laws had been passed at the AGM.

The by-laws had been passed pursuant to section 32(3) of the Building Maintenance and Strata Management Act no.47 of 2004 (“The Act”).

The Subsidiary Proprietor (SP) had violated the above by-law of use of fork-lift and hence the MC (MC) was seeking to obtain an order from the court for the SP to pay “all outstanding fines” imposed by the MC pursuant to he SP’s breach of by-law.

The SP’s submission was that the by-law to impose fines at the MC’s discretion was invalid because the MC does not have the power to make such by-laws.

Observations of the Board.


Read article in full.

Recommended articles