Understanding The Corporation Under The Sectional Properties Act

As we conclude our five-part series on sectional titles, we turn our attention to one of the significant institutional features of the new legal framework, the corporation established under the Sectional Properties Act (Cap 286) ("SPA") and the Sectional Properties Regulations, 2021 ("Regulations"). The corporation is at the heart of sectional developments, replacing the former "management corporations" that operated under the repealed regime. In this final article, we explore what the corporation is, how it functions and how it differs from its predecessor.

What is the corporation?

A corporation is created automatically by law upon the registration of a sectional plan and is provided for under the SPA with clear duties, powers and owner protections. The corporation serves as the legal body representing all unit owners in a sectional development and its core mandate is to control, manage and administer the common property; insure the building and improvements;