s 23 Owner developer’s duties on constitution of management corporation
23.—(1) When a management corporation is constituted for any development, the owner developer of the development must —(a) immediately open a bank account in the name of the management corporation and pay into that account all moneys standing to the credit in the general maintenance fund established under section 16(2) for the maintenance of the subdivided building and the common property of that development; (b) cause to be prepared such accounts and other records as will sufficiently explain the transactions and financial position of the management corporation and enable true and fair profit and loss accounts and balance sheets and any document required to be attached thereto to be prepared for the period starting from the date the management corporation is constituted for the development and ending on a date not earlier than 4 months before the first annual general meeting of the management corporation; and (c) cause the records mentioned in paragraph (b) to be kept in a manner that enables them to be conveniently and properly audited.[35/2017] (2) When a subsidiary management corporation is constituted for any development by the owner developer thereof, the owner developer must also —(a) immediately open a bank account in the name of the subsidiary management corporation and pay into that account all moneys standing to the credit in the special maintenance fund established under section 16(3) for the maintenance of the limited common property of that development; (b) cause to be prepared such accounts and other records as will sufficiently explain the transactions and financial position of the subsidiary management corporation and enable true and fair profit and loss accounts and balance sheets and any document required to be attached thereto to be prepared for the period starting from the date the subsidiary management corporation is constituted for the development and ending on a date not earlier than 4 months before the first annual general meeting of the subsidiary management corporation; and (c) cause the records mentioned in paragraph (b) to be kept in a manner that enables them to be conveniently and properly audited.[35/2017] (3) An owner developer of a development must exercise the powers and perform the duties of —(a) the council of a management corporation; and (b) where the development comprises any limited common property, the executive committee of the subsidiary management corporation, from the time the management corporation or subsidiary management corporation (as the case may be) is constituted until a council of the management corporation or an executive committee of the subsidiary management corporation is elected at the first annual general meeting of the management corporation or subsidiary management corporation, as the case may be. (4) Within one week after the first annual general meeting of the management corporation or subsidiary management corporation (as the case may be), the owner developer must —(a) transfer control of the management corporation’s or subsidiary management corporation’s (as the case may be) money to its newly elected council or executive committee; and (b) deliver to that newly elected council or executive committee all keys and other means of access that the owner developer possesses for the purposes of exercising the powers and performing the duties of the council or executive committee, as the case may be. (5) For a period of 2 years following the transfer of control under subsection (4)(a), the owner developer must —(a) keep all financial records that relate to the management corporation’s and (if any) subsidiary management corporation’s finances during the period before the transfer of control; (b) at the request of the management corporation or subsidiary management corporation, make any of the records mentioned in paragraph (a) available for inspection free of charge by the management corporation or subsidiary management corporation, as the case may be; and (c) allow the management corporation or subsidiary management corporation (as the case may be) to copy or audit those records at its own expense. (6) Before the first annual general meeting of a management corporation, the owner developer must appoint the auditor of the management corporation, and any auditor so appointed holds office until the conclusion of the first annual general meeting of the management corporation. (7) Before the first annual general meeting of a subsidiary management corporation after it is constituted (other than pursuant to a comprehensive resolution), the owner developer must appoint the auditor of the subsidiary management corporation, and any auditor so appointed holds office until the conclusion of the first annual general meeting of the subsidiary management corporation.