RES exam question on Private Property Sale: amount to be raised be determined
A storm damages the roof of the clubhouse at Maple Court. The management corporation must pay the contractor $180,000, which it cannot pay immediately from its funds. The council wants the sum raised from all the subsidiary proprietors in proportion to share value. How must the amount to be raised be determined?
- ABy an ordinary resolution of the management corporation passed at a general meeting
- BBy a special resolution, as the sum falls outside the budget approved for the year
- CBy the council acting alone, as the repair is urgent and within its delegated powers
- DBy a unanimous resolution, as every owner is being asked to pay an additional sum
Show answer & explanation
Answer
A. By an ordinary resolution of the management corporation passed at a general meeting
Explanation
Answer: By an ordinary resolution at a general meeting. Where the management corporation cannot pay a liability at once, the amount to be raised is fixed by ordinary resolution.Watch out: The $180,000 figure does not change the type of resolution needed.Rule: The management corporation fixes contributions for expected liabilities, including repair of common property, by ordinary resolution. Where it cannot pay a liability at once, it fixes the amount to be raised the same way, and owners pay in proportion to share value.Source: Building (Strata Management) Act 2004 s 39(1) and (3), s 40 (sso.agc.gov.sg, current version at 1 October 2026)
Why the other options are wrong
- A special resolution, as the sum is outside budget: No special resolution is required; the Act asks only for an ordinary resolution.
- The council alone, as the repair is urgent: The council cannot make this determination alone; it belongs to the general meeting.
- A unanimous resolution, as every owner pays more: No unanimous resolution is required; an ordinary resolution is enough.
Study the concept behind this question: En Bloc, Auction & the Private Sale Process (Singapore)
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