Apartment Ownership (Amendment) Act (No. 45 of 1982)

Sri Lanka Consolidated Acts

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Apartment Ownership (Amendment) Act (No. 45 of 1982) - Sect 11

Replacement of sections 15 to 20 of the principal enactment.[ 11, 45 of 1982]

11. Sections 15 to 20 of the principal enactment are hereby repealed and the following sections substituted therefor;

15.

(1) The owners of all the units may by unanimous resolution at a meeting convened by the management corporation direct the corporation

(a) to execute on their behalf a grant of servitude or a restrictive covenant burdening the Condominium Property; or

(b) to accept on their behalf a grant of servitude or a restrictive covenant benefiting the Condominium Property.

(2) The management corporation, if it is satisfied that the resolution was duly passed, and that all persons having registered interests in the Condominium Property have consented in writing to the manner of creating those interests in respect of the Condominium property comprised in the proposed disposition, shall execute the appropriate instrument and that instrument shall be valid and effective without any execution by any person having an interest in the Condominium Property, and the receipt of the management corporation for moneys payable to the management corporation under the instrument shall be a sufficient discharge, and shall exonerate the person taking under the instrument from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

	(3) Every instrument creating the servitude or restrictive covenant lodged for registration shall be endorsed with or accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and the certificate shall in favour of a purchaser and the Registrar, be conclusive evidence of the facts stated therein.

	(4) The Registrar shall register the instrument creating the servitude or restrictive covenant by noting it on the registered Condominium Plan.

16.

	(1) The owners of all the units may by a special resolution at a meeting convened by the management corporation direct the management corporation to transfer a part of the common elements.

(2) The management corporation, if it is satisfied that the resolution was duly passed, and that all persons (other than the owners of all the units) having registered interests in the Condominium Property have consented in writing to the release of those interests in respect of the Condominium Property comprised in the proposed transfer, and that the authority for the time being responsible for the approval of plans for the subdivision or amalgamation of any land and the Registrar have consented in writing to the proposed transfer so far as it affects subdivision and amalgamation of the land comprised therein, shall execute the appropriate instrument and such instrument shall be valid and effective without execution by any person having an interest in the common elements, and the receipt of the management corporation for any moneys payable to the management corporation under the instrument shall be a sufficient discharge, and shall exonerate the purchaser from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

	(3) Every instrument of such transfer lodged for registration shall be endorsed with or accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and the certificate in favour of the purchaser and the Registrar shall be conclusive evidence of the facts stated therein.

(4) Upon registration of the transfer by the Registrar the part of the common elements transferred shall be free from such subsisting servitudes created or implied under this Law and the Registrar shall

(a) enter a memorial of the transfer on the folio of the land register comprising the Condominium Property; and

(b) amend the registered Condominium Plan in such manner as the Registrar may think fit so as to show thereon the part of the common elements which has been transferred.

17.

(1) The owners of all the units may by a special resolution at a meeting convened by the management corporation direct the management corporation to accept a transfer

(a) of any land or part thereof, free from any encumbrances except those created by statute and subsisting servitudes so that such land or part thereof shall form part of the common elements in favour of the owners of the units; or

(b) of any unit, including the undivided share in the common elements appurtenant to that unit, free from any encumbrances except those created by statute and subsisting servitudes so that such unit shall form part of the common elements in favour of the owners of the other units shown in the same registered Condominium Plan.

	(2) The transfer lodged for registration shall contain a request to the Registrar that such land or part thereof, or the unit transferred, as the case may be, be included as part of the common elements.

(3) Upon registration of such transfer the Registrar shall

(a) enter a memorial of the transfer on the folio of the land register and the registered Condominium Plan comprising the Condominium Property; and

(b) amend the registered Condominium Plan in such manner as the Registrar may think fit so as to show thereon the transferred land or part thereof or the unit transferred as forming part of the common elements, and in the case where the unit is transferred, to delete the share value of that unit shown on the registered Condominium Plan and decrease the total number of share value equal to the aggregate share entitlement by amending such aggregate number shown on the registered Condominium Plan; and

(c) upon such amendment being made, notify the management corporation of the aggregate share entitlement and the consequent share entitlement of each owner of a unit.

(4) The registered transfer shall have the following effect:

(a) the owners of all the units shall hold the common elements (including the transferred land or unit) as tenants in common proportional to their respective share value shown on the Condominium Plan amended pursuant to subsection (3), and for the same term and tenure and subject to the same covenants, conditions and encumbrances which the owner of all the units held immediately prior to the registration of the transfer, and where any unit is then subject to a registered mortgage, charge, lease or sub-lease, or any other encumbrances, the undivided share in the transferred land or transferred unit forming the additional common elements held by the owner of the said unit shall in all respects be subject to the same mortgage, charge, lease or sub-lease or any other encumbrances without any further assurance; and

(b) the transferred land or part thereof, or the transferred unit, as the case may be, shall form part of the common elements and the provisions of this Law applicable to common elements as varied by this section shall apply to such transferred land or unit.

18.

(1) Where there are two or more management corporations established upon the registration of separate Condominium Plans by the Registrar, the owners of all units being members of those management corporations (hereinafter in this section referred to as " the transferor management corporations") may by their respective special resolutions at the meetings convened by the transferor management corporations direct that for the purpose of amalgamating the common elements within the Condominium Property which are of the same tenure and held by them as tenants in common in undivided shares the relevant transferor management corporations shall execute an instrument of transfer of the common elements of those Condominium Properties so that such common elements shall become vested as common elements in all the owners of the units as tenants in common in so far as those transfers affect the common elements, and upon registration of the instrument of transfer such common elements shall be amalgamated and held in the shares proportionate to their respective share units subject to the same covenants, conditions and encumbrances, and for the same term and tenure then held by the owners of all the units in respect of their respective units prior to the date of the registration of the transfer by the Registrar.

	(2) Such transfer shall show the undivided proportionate share to be held by each owner of a unit named therein and shall be executed by the relevant transferor management corporations.

	(3) The procedure laid down in subsections (2), (3) and (4) of section 16 shall apply, mutatis mutandis, to the transferor management corporations and the owners of all the units of the Condominium Properties to be amalgamated under this section.

(4) Upon the amalgamation of the common elements pursuant to the registration of the transfer by the Registrar

(a) the transferor management corporations shall be amalgamated into a single management corporation (hereinafter in this section called " the transferee management corporation ") which shall be responsible for all matters relating to the management of the subdivided buildings and the common elements relating thereto;

(b) all the members of the transferor management corporations shall be the members of the transferee management corporation;

(c) all the members of the management councils of the transferor management corporations shall, until a new management council is elected for the transferee management corporation, be deemed to be the members of the management council of the transferee management corporation;

(d) all the properties of the transferor management corporations shall be deemed to be transferred to and vest in, and all the liabilities of the transferor management corporations shall be transferred to and become the liabilities of, the transferee management corporation; and

(e) all legal proceedings pending by or against the transferor management corporations may be continued by or against the transferee management corporation.

(5) in this section

(a) " liabilities " includes duties; and

(b) " properties " includes rights and powers of every description.

19.

(1) Notwithstanding the provisions of sections 16, 17 and 18, an owner of a unit may make an application to the District Court of the district in which the registered Condominium Property is situated (hereafter in this section, section 20 E, section 20 M and section 20 Q referred to as " the court") for an order to direct the management corporation or management corporations to

(a) transfer a part of the common elements; or

(b) accept a transfer of any land or part thereof or any unit so that the land or part thereof or unit shall form part of the common elements; or

(2) When an application has been made to the court pursuant to subsection (1), the court, on being satisfied that it is impracticable to convene a meeting to pass a special resolution and that having regard to the rights and interests of the owners of all the units and the persons having registered interests in the common elements as a whole it is just and equitable that

(a) the transfer of the part of the common elements should be made; or

(b) any land or part thereof or unit should form part of the common elements or

may make an order directing the management corporation or management corporations to transfer such part of the common elements, accept the transfer of the land or part thereof or unit, or execute an instrument of transfer of two or more Condominium Properties so that such Condominium Properties shall become vested as one Condominium Property in the owners of all the units as tenants in common in so far as those Condominium Properties affect the common elements, as the case may be, and lodge the transfer with the Registrar.

	(3) Every instrument of such transfer or acceptance of a transfer lodged for registration shall be accompanied with a certified true copy of the order of court directing such transfer or acceptance of a transfer.

(4) Upon the registration of the transfer by the Registrar

(a) in the case of a disposition of all or part of the common elements, the owners of all the units and other persons having registered interests in the common elements shall be bound to accept the terms of the order of the court and the provisions of subsection (4) of section 16 shall apply mutatis mutandis to such transfer;

(b) in the case of any addition to the common elements, the provisions of subsections (3) and (4) of section 17 shall apply mutatis mutandis to such transfer; and

(c) in the case of the amalgamation of the common elements of two or more management corporations, the provisions of subsection (4) of section 16 and subsections (2), (4) and (5) of section 18 shall apply mutatis mutandis to such amalgamation.

20. Unity of seisin in two or more units shall not destroy servitudes or restrictions implied or created by this Law, but on the cessation of such unity they shall continue in full force and effect as if the seisin had never been united.

20A.

	(1) The share value of each unit (except in the case of an accessory unit where no share value shall be allotted) shown in every plan lodged for registration as a Condominium Plan shall be taken as share units.

(2) The share units shall determine-

(a) the voting rights of the owners of all the units;

(b) the quantum of the undivided share of each owner of a unit in the common elements, and

(c) the proportion payable by each owner of a unit of contributions levied by the management corporation pursuant to section 20H.

20B.

	(1) The owners of the units shall, by virtue of this Law, upon registration of the Condominium Plan be a body corporate with perpetual succession and a common seal and shall be called ' the management corporation ".

(2) The management corporation may

(a) sue and be sued on any contract made by it;

(b) sue and be sued in respect of any matter affecting the common elements; and

(c) be sued in respect of any matter connected with the Condominium Property for which the owners of all the units are jointly liable.

	(3) The management corporation shall elect a council which, subject to any restriction imposed or direction given by the management corporation at a general meeting, shall perform the management corporation's duties and conduct the management corporation's business on its behalf and may for that purpose exercise any of the management corporation's powers.

	(4) The provisions of the First Schedule to this Law shall have effect in relation to the management corporation and its council,

	(5) If the management corporation makes default in complying with any requirements of, or duties imposed upon it by, any of the provisions of the First Schedule to this Law the management corporation and every member of its council, or every owner of a unit, who is knowingly a party to the breach or default, shall be guilty of an offence under this Law.

	(6) Any member of the management council and any owner of a unit who makes default in complying with any of the provisions of the First Schedule to this Law or makes default in complying with any requirements of, or duties imposed upon it by, any of the provisions of the First Schedule to this Law shall be guilty of an offence under this Law.

	(7) In this section " owners of all the units " includes the persons entitled to the Condominium Property upon destruction of the subdivided building pursuant to section 20Q.

20C.

(1) The duties of the management corporation shall include the following:

(a) to manage and properly maintain the common elements and keep them in a state of good and serviceable repair;

(b) unless otherwise directed by unanimous resolution, to insure and keep insured the subdivided building to the replacement value thereof against fire and such other risks as may be prescribed under this Law;

(d) to insure against such other risks as the owners of all the units may by special resolution direct.;

(e) to forthwith apply insurance moneys received by it in respect of damage to the subdivided building in rebuilding and reinstating it so far as it may be lawful to do so;

(f) to pay premiums on any policy of insurance effected by it;

(g) to comply with any notice or order made by any Government, public or statutory authority requiring the abatement of any nuisance on the common elements or ordering repairs or other work to be done in respect of the common elements or any building or other improvement on the Condominium Property;

(h) to comply with any such notice or order as is referred to in paragraph (g) given or made in respect of any of the units, if the owner of a unit fails to do so within a reasonable time; and

(i) to pay the rent (if any) on the land on which the subdivided building is erected-

(2) The powers of the management corporation shall include the following:

(a) to take lawful steps to recover from any owner of a unit any sum expended by the management corporation in respect of that owner's unit in complying with any such notice or order as is referred to in paragraph (h) of subsection (1);

(b) to purchase, hire or otherwise acquire movable property for use by the owners of all the units in connection with their enjoyment of the common elements;

(d) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid contributions to the management fund, whether already levied or not; and

(e) to take lawful steps necessary for the performance of its duties under this Law and for the enforcement of the by-laws set out in the Second Schedule to this Law.

(3) The management corporation shall be deemed

(a) for the purpose of effecting any insurance under paragraph (b) or (c) of subsection (1), to have an insurable interest in the subdivided building equal to its replacement values; and

(b) for the purpose of effecting any insurance under paragraph (d) of subsection (1), to have an insurance interest in the subject-matter of the insurance.

	(4) A policy of insurance taken out by the management corporation under this section in respect of the subdivided building shall not be liable to be brought into contribution with any other policy of insurance, except another policy taken out under this section in respect of the same subdivided building.

(5) Where the management corporation performs any repairs, work or act (whether or not the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order), and the repairs, work or act were or was wholly or substantially the liability or the responsibility of the owner of a unit only or wholly or substantially for the benefit of some of the units only or wholly or substantially the liability or the responsibility of the owners of some of the units only, any money expended by the management corporation in performing the repairs, work or act shall

(a) in the case where the repairs, work or act were or was wholly or substantially the liability or the responsibility of the owner of a unit only, be recoverable by the management corporation in an action in any court of competent jurisdiction as a debt due to it jointly and severally from

(b) in the case where the repairs, work or act were or was wholly or substantially for the benefit of some of the units only or wholly or substantially the liability or the responsibility of the owners of some of the units only, be recoverable by the management corporation in an action in any court of competent jurisdiction as a debt due to it jointly and severally from

(6) An owner of a unit who is not the owner of the unit at the time when the repairs, work or act referred to in subsection (5) were or was performed shall not be liable to pay to the management corporation any amount due under that subsection if he has, at any time on or within twenty-one days before the date he acquired the title or interest in the unit, made a requisition in writing to the management corporation to inquire about the amount (if any) recoverable by the management corporation under that subsection in respect of the unit and the management corporation has

(a) certified that no amount is then recoverable by the management corporation in respect of the unit pursuant to subsection (5); or

(b) not given a reply to the requisition at any time within fourteen days of the date of the service of the requisition, and where the management corporation has certified that any amount is due under subsection (5), the liability of such owner shall be limited to the amount so certified.

(7) Where the management corporation incurs any expenditure or performs any repairs, work or act (whether or not the expenditure was incurred or the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order) and the expenditure or the repairs, work or act were or was rendered necessary by reason of any wilful or negligent act or omission on the part of, or breach of any provision of its by-laws by any person or his tenant, lessee, licensee or invitee, the amount of that expenditure of any money expended by it in performing the repairs, work or act shall be recoverable by it from that person as a debt in an action in any court of competent jurisdiction.

	(8) The generality of this section shall not be prejudiced by any other provisions of this Law conferring a power or imposing a duty on the management corporation.

20D.

	(1) Notwithstanding any existing policy of insurance effected on a subdivided building the owner of a unit may effect a policy of insurance in respect of damage to his unit in a sum equal to the amount secured by a subsisting mortgage thereon and owing as at the date of the damage or loss caused to the unit.

(2) Where any such policy of insurance is in force

(a) payment shall be made by the insurer under the policy to the registered mortgagees in order of their respective priorities, subject to the terms and conditions of the policy;

(b) subject to the terms and conditions of the policy, the insurer shall be liable to pay thereunder

(c) where the amount so paid equals the amounts necessary to discharge a mortgage charged upon the unit the insurer shall be entitled to a transfer of the mortgage ; and

(d) where the amount so paid by the insurance is less than the amount necessary to discharge a mortgage charged upon the unit the insurer shall be entitled to secure the amount so paid on terms and conditions agreed upon as provided in subsection (3) or, failing agreement, on the same terms and conditions as those contained in the mortgage.

	(3) For the purposes of paragraph (d) of subsection (2) any insurer and mortgagee may at any time, whether before or after a policy of insurance has been effected by the owner of a unit, agree upon the terms and conditions of the sub mortgage.

	(4) Nothing in this section shall limit the right of the owner of a unit to insure against risks other than damage to his unit.

	(5) The policy of insurance authorized by this section and taken out by the owner of a unit in respect of damage to his unit shall not be liable to be brought into contribution with any other policy of insurance save another policy taken out under this section in respect of damage to the same unit.

	(6) The provisions of this section shall apply not withstanding the provisions of any law relating to insurance.

20E.

	(1) The court on the application of the management corporation, the owner of a unit or any other person or body having a registered interest in a unit may appoint an administrator for the management corporation for a fixed or indefinite period and on such terms and conditions as to remuneration or otherwise as the court thinks fit.

	(2) The remuneration and expenses of the administrator shall be charged upon the management fund of the management corporation.

	(3) The administrator, to the exclusion of the management corporation, shall have the power and shall perform the duties of the management corporation, or such of them as the court may order:

	(4) The court on the application of the administrator or any person or body entitled to apply under subsection (1) may remove or replace the administrator.

	(5) An administrator when appointed shall forthwith lodge with the Registrar and the Common Amenities Board an office copy of the order of court making his appointment.

	(6) Where an order of court for removal or replacement of an administrator has been granted to any person, such person shall forthwith lodge with the Registrar and the Common Amenities Board an office copy of such removal or replacement.

	(7) On any application made under this section the court may make such order for the payment of costs as it thinks fit.

20F.

(1) Where the Common Amenities Board is satisfied that the management corporation is not carrying out its duties or performing its business satisfactorily and is of the opinion that certain duties must be carried out urgently or immediate action must be taken with respect to matters of concern to the management corporation and the owners of all the units, the Common Amenities Board shall have the power and may perform the duties of the management corporation until such time an administrator is appointed under section 20E.

	(2) The expenses incurred by the Common Amenities Board for and on behalf of the management corporation shall be a charge upon the management fund of the management corporation.

	(3) When the Common Amenities Board has exercised the powers conferred upon it under this section it shall as soon as possible notify the management corporation concerned or every member thereof or the person responsible for the management of the subdivided building and the common elements.

20G.

	(1) Every subdivided building shown in a Condominium Plan shall be regulated by by-laws which shall provide for the control, management, administration, use and enjoyment of the units and the common elements.

	(2) The by-laws shall include the by-laws set out in Second Schedule to this Law which shall not be amended or replaced by the management corporation.

	(3) The by-laws set out in the Second Schedule to this Law, shall, as and from the registration of a Condominium Plan, be in force for all purposes in relation to every subdivided building.

	(4) The management corporation may, subject to the provisions of this Law and any other written law, by special resolution make additional by-laws, not inconsistent with the by-laws set out in the Second Schedule to this Law, for regulating the control, management, administration, use and enjoyment of the subdivided building.

(5) The by-laws for the time being in force in respect of the subdivided buildings shall bind the management corporation and the owners of all the units to the same extent as if they constituted properly executed agreements

(a) on the part of the management corporation with the owners of all the units; and

(b) on the part of each owner of a unit with the management corporation.

(6) The management corporation shall

(a) keep a record of the by- laws in force from time to time;

(b) on receipt of an application in writing made by the owner of a unit or by a person duly authorized to apply on behalf of the owner of a suit for a copy of the by-laws in force, supply to such owner or duly authorized person at a reasonable cost a copy of the by-laws.; and

(c) on the application of any person who satisfies the management corporation that he has a proper interest in so applying, make available for inspection the by-laws.

(7) No by-law shall be capable of operating

(a) to prohibit or restrict the assurance of any unit; or

(b) to destroy or modify any servitude expressly or impliedly created by or under this Law.

	(8) A copy of every by-law made by the management corporation and every modification or amendment of any by-law for the time being in force, certified as a true copy under the seal of the management corporation, shall be lodged by the management corporation with the Common Amenities Board.

(9) The management corporation or any owner of a unit shall be entitled to apply to the court

(a) for an order to enforce the performance of or restrain the breach of any by-law by; or

(b) to recover damages for any loss or injury to any person or property arising out of the breach of any by-law from, any person bound to comply therewith, the management corporation or the administrator, and the court may make such order against any such person, the management corporation or the members of its council, or the administrator, as the court thinks fit.

	(10) Every owner or occupier of a unit who commits a breach of any of the by-laws in the Second Schedule to this Law or makes default in complying with the provisions of the said by-laws, and every owner of a unit who is knowingly a party to the breach or default, shall be guilty of an offence under this Law.

20H.

	(1) The management corporation shall establish a fund for administrative expenses (hereinafter referred to as " the management fund") sufficient in the opinion of the management corporation for the purposes of controlling, managing and administering the common elements, paying rent, rates and premiums of insurance and discharging any other obligation of the management corporation.

	(2) The management corporation may by unanimous resolution invest as it thinks fit any moneys in the management fund provided that a unanimous resolution shall not be required for investment in a fixed deposit account with a bank.

(3) For the purposes of establishing and maintaining the management fund the management corporation may at a general meeting

(a) determine from time to time the amounts to be raised for the purposes mentioned in subsection (1);

(b) raise the amounts so determined by levying contributions on the owners of all the units in proportion to the share units of their respective units; and

(4) On application by or on behalf of a person who is the owner of a unit or by or on behalf of a prospective purchaser of a unit that is offered for sale or by or on behalf of the mortgagee or prospective mortgagee of a unit, the management corporation shall issue to that person a certificate certifying

(a) the amount determined pursuant to subsection (3) as the contributions of that owner;

(b) the time and manner of payment of the amount determined by it pursuant to that subsection;

(d) the amount (if any) then recoverable by the management corporation in respect of the unit pursuant to subsection (5) of section 20c;

(e) the sum or the respective sums standing to the credit of the fund or funds kept and maintained by the management corporation pursuant to subsection (1), and the amount or respective amounts out of that fund or those funds committed or earmarked for any expenses already incurred by the management corporation; and

(f) whether or not the management corporation has incurred any expenditure or performed or is about to perform any repairs, work or act in respect of which a liability is likely to be incurred by the owner or a unit under any provision of this Law and, if so, the estimated amount of the expenditure or the general nature of the reapers, work or act, and as against the management corporation and in favour of any person (including the member) relying in good faith on such certificate, that certificate shall be conclusive evidence of the matters certified therein.

	(5) Any contribution levied under subsection (3) in respect of a unit shall be due and payable on the passing of a resolution to that effect by the management corporation, and in accordance with the terms of that resolution, and may be recovered as a civil debt from the owner of, or his successor in title to, the unit.

	(6) For the purposes of subsection (5) " owner of a unit" includes the person for the time being receiving the rent of the unit whether as agent or trustee or as receiver, and who would receive the same if the unit were let to a tenant.

20J.

(1) Where

(a) any contribution has been levied under subsection (3) of section 20H in respect of a unit; or

(b) any amount is recoverable by the management corporation in respect of a unit pursuant to subsection (5) of section 20C,

(2)The management corporation shall, subject to the provisions of subsection (3), have the power of sale and all other powers relating or incidental thereto as if such management corporation was a registered mortgagee and the amount of contribution due (including any interest thereon) shall be subject to all statutory rights and charges of any Government or statutory authority over the unit and to all encumbrances registered or notified prior to the date of lodgment of the said instrument of charge.

(3)The management corporation shall not proceed under subsection (2) to sell the unit unless

(a) a special resolution has been passed by the management corporation to have the unit sold ;

(b) a notice of the intended sale has been published once in one or more daily newspapers;

(c) during the period of six weeks after the date of such publication no payment has been made for the amount of contribution including interest thereon due and the cost of publication specified in paragraph (b) as well as any other necessary incidental charges; and

(d) there is no legal action pending in court to restrain the management corporation from proceeding with the sale.

(4) Where a transfer of any unit has been made by the management corporation in the exercise of its power of sale as a charge pursuant to the provisions of subsection (3) and lodged with the Registrar for registration

(a) such transfer shall not be accepted for registration unless there has been lodged with the Registrar

(b) neither the purchaser of the unit from the management corporation nor the Registrar shall be concerned to enquire into the regularity or validity of the sale or transfer.

(5) Where the management corporation has wrongfully or otherwise exercised its power of sale in contravention of the provisions of this section every member of the council of the management corporation present when the special resolution was passed or in whose presence the seal of the management corporation was affixed to the certified true copy of the special resolution passed and lodged with the transfer pursuant to subsection (4) of this section shall be guilty of an offence under this Law.

	(6) The unit shall, upon payment of the amount of contribution due including all interest thereon and any necessary incidental charges, be discharged by the management corporation upon the receipt of such payment.

(7) The provisions of this section shall be without prejudice to the rights and powers conferred on the management corporation by subsection (5) of section 20C or subsections (5) and (6) of section 20H to recover the contribution or amount due and all interest thereon including any legal costs and incidental charges necessarily incurred for the recovery of such contribution or amount in respect of any unit as a civil debt from the owner of, or his successor in title to, the unit.

	(8) In this section " Government or statutory authority" shall include any person, corporation or body, authorized or empowered by any written law to attach, sell or acquire land compulsorily.

20K.

(1) The payment of any amount lawfully incurred by the management corporation in the course of the exercise of any of its powers or functions or the carrying out its duties or obligations shall, by virtue of this section, be guaranteed by the persons who, for the time being and from .time to time, are the members of the management corporation, the member who is or the members who are the owner or owners of each unit being liable under such guarantee only for such proportion of the money so incurred as the share unit of that unit bears to the aggregate share units of all the units.

(2) Where

(a) by reason of any liability of a member or former member of the management corporation under subsection (1) that member or former member has, in respect of any matter, been obliged to pay, and paid, more than the proportion for which he was liable in respect of that matter under subsection (3) of section 20H ; and

(b) any other member or members of the management corporation has or have not discharged or fully discharged his or their liability under that subsection in respect of that same matter,

20L.

	(1) Where the owner of a unit is for any reason unable to control his property, the powers of voting conferred on him by the First Schedule to this Law shall be exercisable by the person who is for the time being authorized by law to control that property.

(2) Where the owner's interest is subject to one or more registered mortgages, the powers of voting conferred on him by the First Schedule to this Law

(a) shall, in any case where an unanimous resolution is required, be exercised by the mortgagee first entitled in priority either personally or by proxy unless such mortgagee has at any time prior to the general meeting given notice in writing to the management corporation that he does not intend to exercise the said powers of voting;

(b) in any other case, may be exercised by the owner unless the mortgagee first entitled in priority has at any time prior to the general meeting given written notice to the management corporation of his intention to exercise the said powers of voting and in such event the powers of voting shall be exercised by the mortgagee when the mortgagee is present personally or by proxy at the general meeting and if the mortgagee or his proxy is not present at the general meeting, then the powers of voting may subject to the provisions of paragraph (c) be exercised by the owner;

(c) in any case where the mortgagee first entitled in any priority does not wish to exercise his powers of voting, the registered mortgagee entitled next in priority or his proxy may exercise the powers of voting conferred upon the mortgagee first entitled in priority and if the registered mortgagee entitled next in priority or his proxy is not present at the said general meeting then such powers of voting may be exercised by the owner.

	(3) A registered mortgagee shall not be entitled to exercise his powers of voting conferred by subsection (2) unless he has notified his interest to the management corporation.

20M. Where the court, on the application of the management corporation or the owner of a unit, is satisfied that there is no person or body able to vote in respect of a unit, the court

	(a) shall, in cases where an unanimous resolution is required by this Law; and

	(b) may, in any other case,

20N.

(1) The management corporation shall at or near the front building alignment of the Condominium Property

(a) cause to be continuously displayed a notice showing the name of the management corporation and the address for service of documents shown on the registered Condominium Plan; and

(b) where the address for service of documents shown on the registered Condominium Plan is the postal address of the building erected within the Condominium Property, cause to be continuously available a receptacle suitable for purposes of postal delivery with the name of the management corporation clearly shown thereon.

	(2) Where the address for service of documents is altered the management corporation shall forthwith notify the Registrar and the Common Amenities Board of the alteration, and the Registrar shall amend the registered Condominium Plan accordingly.

	(3) A document may be served on the management corporation by sending it by registered post addressed to the, management corporation at the address shown on the registered Condominium Plan or any amendment thereto.

	(4) Any notice sent by registered post to the last recorded address of the management corporation shall be deemed to be duly served on the management corporation at the time when a letter would in the ordinary course of post be delivered, and notwithstanding the fact that the letter may be returned through the post office undelivered.

	(5) For the purposes of this section " document " includes summons, notice, order and other legal process.

20P. Where a subdivided building shown in a Condominium Plan is damaged but is not totally destroyed the management corporation shall in the following priority:

	(a) reinstate the damaged portion of the subdivided building and provide a scheme for the continued use of the subdivided building in whole or in part;

	(b) apply the insurance moneys received by the management corporation in respect of damage to the subdivided building towards the scheme of reinstatement and continued use of the subdivided building referred to in paragraph (a);

	(c) direct the payment of the insurance moneys received by the management corporation to the owners of the units or some or one or more of them whose units were damaged or destroyed.

20Q.

	(1) For the purposes of his Law, a subdivided building shown in a Condominium Plan shall be deemed to be destroyed when the owners of all the units by unanimous resolution resolve that the subdivided building be destroyed.

	(2) Upon destruction of the subdivided building the management corporation shall forthwith lodge with the Registrar a notice of its destruction.

	(3) On receipt of that notice the Registrar shall enter a notification of the destruction of the subdivided building and a memorial of the vesting of the Condominium Property in the owners as tenants in common in the registered Condominium Plan and in the volume and folio of the land register comprising the Condominium Property.

(4) Upon the entry of that memorial

(a) each owner shall cease to be the owner of the unit and shall be entitled to the Condominium Property as a tenant in common with the other owners in the shares proportional to his share units and for the same term and tenure held by him in respect of his unit;

(b) any subsisting encumbrance registered against his unit shall be an encumbrance on his share in the land comprising the Condominium Property, and a memorial or notification of the encumbrance entered in the volume and folio of the land register comprising that land shall bear the same date as the date of registration of that encumbrance against his unit; and

(c) all statutory servitudes implied under this Law shall cease to affect the land comprising the Condominium Property or any part thereof.

	(5) The former owners may by unanimous resolution direct the management corporation to transfer the Condominium Property or any part thereof.

(6) The management corporation, if it is satisfied that the resolution was duly passed and that all persons having registered interests in the Condominium Property have consented in writing to the release of their respective interests in the land comprising the Condominium Property or any part thereof, intended to be transferred, shall execute the appropriate transfer, and the transfer shall be valid and effective without execution by any person having a registered interest in the Condominium Property, and the receipt of the management corporation for any moneys payable to the management corporation under the transfer shall be a sufficient discharge, and shall exonerate the person taking under the transfer from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

(7) A transfer executed by the management corporation pursuant to the last preceding subsection shall not be accepted for registration unless accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and such a certificate shall, in favour of a purchaser of the Condominium Property and in favour of the Registrar, be conclusive evidence of the facts stated therein.

(8) When land or any part thereof is transferred by a former owner or the management corporation after a notice of destruction of the subdivided building has been lodged with the Registrar

(a) the former owner, if he is transferring, shall surrender to the Registrar his title deeds relating to his unit;

(b) the management corporation, if it is transferring on behalf of all the former owners, shall surrender to the Registrar on behalf of all the former owners their title deeds; and

(c) the Registrar, on receipt of the title deeds relating to the unit or units, as the case may be, shall cancel the relevant folios of the subsidiary register of Condominium Property, and thereafter the transferee shall deal with the land in accordance with the provisions of the Registration of Documents Ordinance.

	(9) Notwithstanding the termination of a subdivision under this section the relevant record of the subsidiary register of Condominium Property may be used in evidence as a record of matters relating to the subdivision before its termination so long as the management corporation continues in existence.

	(10) Where a transfer of the Condominium Property pursuant to subsection (5) has been lodged with and registered by the Registrar, the management corporation shall be continued 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 owner 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 a fairs.

(13) On the management corporation being wound up

(a) every former owner 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

(b) the assets of the management corporation, if any, shall be distributed among the former owners, in the same proportion as the proportion of contribution which such former owners would have been liable for in accordance with section 20A.

(14) The court may, on the application of a former owner, 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 lodgment of such order for registration under this Law, the Registrar shall then register and cancel the relevant record of the subsidiary register of Condominium Property.

(15) In this section

(a) " 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 unit, forming part of the subdivided building;

(b) " former owner " means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, was the owner of a unit, forming part of the subdivided building.'.

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