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11 August 2020
Min Lee Tan Apex court rules that maintenance charges owed by parcel proprietors constitute unsecured debts

Malaysia - Gan Partnership

As Section 77 of the Strata Management Act provides that the amount due to a management corporation (MC) is a 'guaranteed sum', issues arise as to whether an MC is a secured creditor in the event that a parcel proprietor is insolvent and wound up. In a recent decision, the Federal Court decided that the outstanding amount due to an MC is an unsecured debt.

Authors: Min Lee Tan, Mun Yan Mah
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