by Angeline Ang
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.