Federal Court: Management Corporation can impose different rates of charges

Case update: Yii Sing Chiu v Pearl Suria Management Corporation & 2 Ors (2 motions for leave)

On 19.3.2024, the Federal Court upheld the landmark decision of the Court of Appeal determining that:

  • a Management Corporation may determine different rates of Charges under Section 60(3)(b) of the Strata Management Act 2013 where exclusive use of common facilities and common property can be shown;
  • “Just and reasonable” is the appropriate test for the determination of rates of charges, and is also the test to be applied to nullify the rates of charges;
  • This can be achieved through the preparation of the annual budget showing actual and expected expenditure and obtaining approval at an Annual General Meeting.

The Federal Court panel of 3 judges dismissed both motions for leave by Yii Sing Chiu with costs to be paid to the Management Corporation.

Our previous article on the Court of Appeal’s grounds in respect of these appeals can be found vide the following link: https://cheehoe.com/court-of-appeal-management-corporation-can-impose-different-rates-of-charges/

Angeline Ang Profile Photo
Senior Legal Associate at Chee Hoe & Associates.
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