Restrictions on powers of Management Corporation
27 Restrictions on powers of Management Corporation
(1) Notwithstanding anything contained elsewhere in these Regulations, the Management Corporation shall not, during the initial period:
(a) alter the common property or erect a structure on the common property; or
borrow money or give securities,
unless the doing of the thing is authorised by an order of a court or tribunal.
(2) Without affecting any other remedy available against the Developer, where the Management Corporation contravenes subregulation (1):
(a) the Developer is liable for a loss suffered by the Corporation or an owner of a lot as a result of the contravention; and
(b) the Corporation or an owner may recover from the Developer, as damages for breach of statutory duty, a loss suffered by it or him or her,
unless:
(c) the contravention occurred without the knowledge of the Developer;
(d) the Developer was not in a position to influence the conduct of the Corporation in relation to the contravention; or
(e) the Developer, being in such a position, used due diligence to prevent the contravention.
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