Organisational Behavior

In: Business and Management

Submitted By roshi
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Establishment of the management corporation

Management Corporation is entrusted with the task of managing, administrating and marinating the common elements of a condominium property. It is likely a mini government having the power to impose by-laws and rules for the purpose of regulations and management t of common elements.

Upon the registration of the Deed of declaration and the plan of the subdivided property at respective land registry a body corporate referred to as Management Corporation comes into existence having its own common seal and the power to sue and be sued under its name. All owners of condominium units become a body corporate with perpetual succession under the provisions of Apartment ownership law. The legal status of a Management Corporation enables into;

1. Sue and be sued on any contract by it 2. Sue and be sued in respect of any matters affecting the common elements; and 3. Be sued in respect of any matter connected to the condominium property or semi condominium property for which the owners of all condominium parcels are jointly liable.

Unlike a company, incorporated under the provisions of the Companies Act, where the incorporation can be verified by a certificate issued by the Registrar of Companies, there is no such certificate to establish the incorporation of the Management Corporation. As the registration of the Deed of Declaration results in the creation of the Management Corporation, its existence can be verified by the by the endorsement on the Deed of Declaration by the Registrar of Land in the absence of the certificate. In the United States condominium owners from Condominium Association, which are non profit bodies, established by a certificate with the internal rules and regulations laid down in the Article of Association registered with the master Deed (similar to deed of declaration).

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