MCST Liquidation

Tan, Chan & Partners has a long track record in handling many liquidation cases for the past 25 years. Throughout the years, we have gained valuable experience and have established cordial relationships with our clients and working partners. Our working partners include Rodyk and Davidson, Rajah & Tann, Alleb & Gledhill, Compass LLC, Genesis Law Corporation, TSMP Law Corporation, Wee, Tay & Lim, Wong Partnership, who are acting as solicitors for developers such as Novelty, MCLand, Capital Land, Heeton, Tiong Aik, Habitat Land Pte Ltd, Came Enterprises Pte Ltd, Roxy Homes Pte Ltd, World Class Land Pte Ltd, Bukit Sembawang View Pte Ltd, etc...

A management corporation constituted under the Land Titles (Strata) Act shall be terminated pursuant to Section 81(1), 81(2)(a), 81(8) & 82 of the said Act and in accordance with Section 84(1) of the Building Maintenance And Strata Management Act.

A management corporation may, by resolution by **consensus, resolved to terminate the strata subdivision of the building.

** 21 days' notice is required to convene the general meeting and resolution can only be passed at the end of a period of 12 weeks after the general meeting is convened. To expedite the process of the termination of a strata subdivision of a building where the management corporation is constituted by sole subsidiary proprietor, they can seek from the Minister for National Development (“MND’) to exempt from requirement of the 21-day notice period and 12-week waiting period [Section 2 (7) of the BMSMA] to procure the resolution by consensus to terminate the Management Corporate Strata Title.

The management corporation shall -

• within 14 days after the passing of a resolution, give notice of the resolution in one newspaper circulating in Singapore i.e. The Straits Times; and
• within 30 days after the passing of the resolution, lodge an application with the Registrar to terminate the strata subdivision.
• continue to perform the business for the purpose of winding up its affairs until a liquidator is appointed for the purpose of carrying out the winding up of the MCST,
• cease all powers upon the **appointment of a liquidator and the liquidator shall have the power to carry on the management corporation’s business for the purpose of winding up its affairs.
• A solicitor shall be appointed to carry out the proceedings, including preparing of resolutions, submission of documents to the Land Office and applying to the Court for termination of title.
• The liquidator will dispose of the assets and pay all creditors in full. Subject to Comptroller of Income Tax clearance, the liquidator shall close the liquidation proceeding and furnish Statement of Receipts & Payments to the appointed solicitor, so as to facilitate the preparation of documents to apply to the Court for termination of MCST. It marks the end of the whole proceeding.

**Under section 82 of the Land Titles (Strata) Act, an approved liquidator shall be appointed to take over the affairs of the management corporation and take possession of its assets and liabilities.

Brief outline of the procedures:

• MCST pass resolutions, by consensus, for termination and appointment of liquidator
  
• Advertise the resolutions including the appointment of liquidator in the Straits times
  
• Lawyer will apply for termination with the relevant authorities and a common seal is required to sign the prescribed form
  
• Liquidator will seek tax clearance from the IRAS
  
• Liquidator will inform the bank to close the bank account and transfer the funds to a liquidation bank account whereby the liquidator will take charge of the funds in it.
  
• Liquidator will apply for the closure of the SP Services account
  
• The objective of the above procedures is to ensure that all assets are realised and liabilities are paid and tax is cleared
  
• Once the liquidation process is completed, a report will be prepared by the liquidator to facilitate the lawyer to apply to court for termination hearing.
  
• The court, on being satisfied that the affairs of the MC have been wound up, make an order to release the liquidator.
  
• Upon the expiry of 3 months of the lodging of such order with Registrar and the Commissioner, the MC shall be dissolved.

Our professional service for the liquidation of MCST includes:

• Taking over the assets and liabilities of the MCST
  
• Distributing the assets after paying off the creditors in full (if there is any)
  
• Liaise with the Inland Revenue to seek clearance for the MCST tax position
  
• Liaise with the MCST’s solicitors upon commencement and closing of liquidation.

The entire process may take between 2 and 4 months, depending on the tax clearance from Inland Revenue Authority and submission of termination documents by the solicitors to the relevant authorities.

For enquiry or further details, please email or call Peggy @ 65337393 (Ext 115).