Statute Details
- Title: Building Maintenance and Strata Management (Small Management Corporations — Exemption) Order 2018
- Act Code: BSMA2004-S781-2018
- Legislation Type: Subsidiary legislation (Order)
- Authorising Power: Made under section 134(1) of the Building Maintenance and Strata Management Act (Cap. 30C)
- Enacting Minister/Authority: Minister for National Development
- Commencement: 1 February 2019
- Citation: S 781/2018
- Key Definitions: “small management corporation” (10 or fewer lots)
- Key Provisions: Exemptions from disqualification rules in sections 53(9A), 53(9B), and 55(7) of the Act
- Revocation: Revokes the Building Maintenance and Strata Management (Exempt Treasurers) Order (O 1)
What Is This Legislation About?
The Building Maintenance and Strata Management (Small Management Corporations — Exemption) Order 2018 (“the Order”) is a targeted regulatory instrument that modifies how certain disqualification rules apply to office-bearers in small strata management corporations. In plain terms, it recognises that smaller strata developments often have fewer residents willing or able to take on management roles. As a result, the law provides limited exemptions so that individuals can move between key positions—chairperson, treasurer, and secretary—without being blocked by specific disqualification provisions.
The Order operates within the broader Building Maintenance and Strata Management Act (Cap. 30C) (“the Act”), which sets out governance requirements for strata title plans and the management corporations that administer them. The Act includes rules that disqualify individuals from being elected or appointed to certain offices under specified circumstances. Those disqualification provisions are designed to protect the integrity of strata governance and reduce conflicts of interest or improper conduct.
However, the Order does not remove disqualification rules entirely. Instead, it creates narrow exemptions for “small management corporations”—defined as management corporations constituted for strata title plans with 10 or fewer lots. The exemptions are role-specific and relate to disqualification triggered by the Act’s provisions on election/re-election and appointment/re-appointment. This makes the Order particularly relevant for practitioners advising residents, management committees, and councils in small strata developments.
What Are the Key Provisions?
1. Citation, commencement, and definition (sections 1 and 2)
Section 1 provides the citation and commencement: the Order comes into operation on 1 February 2019. Section 2 defines a “small management corporation” as a management corporation constituted for a strata title plan with 10 or fewer lots. This definition is crucial because all exemptions in the Order depend on whether the relevant management corporation meets this threshold.
2. Exemption from disqualification under section 53(9A) (section 3)
Section 53 of the Act addresses election-related disqualifications. The Order’s section 3 provides exemptions from disqualification under section 53(9A) for certain office transitions within small management corporations. The disqualification provisions in section 53(9A) are expressed in sub-paragraphs (a), (b), and (c), and the Order mirrors that structure.
Under section 3(1), an individual who is elected at a general meeting of a small management corporation as treasurer or secretary is not ineligible under section 53(9A)(a) for election or re-election as chairperson of that small management corporation. In practical terms, this allows a person who previously served as treasurer or secretary to become chairperson (and potentially be re-elected) without triggering the specific disqualification that would otherwise apply.
Under section 3(2), an individual elected as chairperson or secretary is not ineligible under section 53(9A)(b) for election or re-election as treasurer. This supports continuity of leadership in small strata communities.
Under section 3(3), an individual elected as chairperson or treasurer is not ineligible under section 53(9A)(c) for election or re-election as secretary. Together, these provisions create a “rotation” flexibility among the three key offices when the person is elected at a general meeting.
3. Exemption from disqualification under section 53(9B) (section 4)
Section 4 provides a further exemption from disqualification under section 53(9B). Specifically, it states that an individual in a small management corporation is not ineligible under section 53(9B) for re-election to office as treasurer of the small management corporation.
This provision is narrower than section 3. It focuses on re-election as treasurer and does not expressly extend to chairperson or secretary. For practitioners, this means that while the Order offers broader election flexibility across offices (section 3), it also includes a specific, additional protection for treasurers seeking re-election (section 4). Advisers should therefore map the client’s intended election pathway to the correct disqualification clause in the Act.
4. Exemption from disqualification under section 55(7) (section 5)
Section 55 of the Act deals with appointment-related disqualifications. Section 5 of the Order provides exemptions from disqualification under section 55(7) for appointment and re-appointment scenarios involving the chairperson, treasurer, and secretary of the council of a small management corporation.
Section 5(1) provides that an individual already elected or appointed as treasurer or secretary is not ineligible under section 55(7)(a) for appointment as chairperson by the council. Section 5(2) provides that an individual already elected or appointed as chairperson or secretary is not ineligible under section 55(7)(b)(i) for appointment as treasurer. Section 5(3) provides that an individual already elected or appointed as chairperson or treasurer is not ineligible under section 55(7)(c) for appointment as secretary.
Section 5(4) further provides that an individual in a small management corporation is not ineligible under section 55(7)(b)(ii) for re-appointment as treasurer of the council. This parallels the election-focused treasurer re-election exemption in section 4, but for appointment/re-appointment under the council mechanism.
5. Revocation (section 6)
Section 6 revokes the earlier Building Maintenance and Strata Management (Exempt Treasurers) Order (O 1). This indicates that the 2018 Order supersedes prior exemptions, consolidating and updating the exemption framework for small management corporations. Practitioners should therefore treat the 2018 Order as the operative instrument for the relevant exemptions, rather than relying on the revoked O 1.
How Is This Legislation Structured?
The Order is structured as a short, six-section instrument:
Section 1 sets out the citation and commencement. Section 2 defines the key term “small management corporation” by reference to the number of lots (10 or fewer). Sections 3 to 5 contain the substantive exemptions from disqualification rules in the Act—covering election/re-election disqualifications (section 53(9A) and 53(9B)) and appointment/re-appointment disqualifications (section 55(7)). Section 6 revokes the earlier exempt treasurer order.
Who Does This Legislation Apply To?
The exemptions apply to individuals who are elected or appointed to office within a small management corporation. The threshold for “small” is strict: the management corporation must be constituted for a strata title plan with 10 or fewer lots. If the strata plan has more than 10 lots, the exemptions do not apply, and the disqualification provisions in the Act would operate without the benefit of these Order-based carve-outs.
In terms of office roles, the Order focuses on the three principal governance positions: chairperson, treasurer, and secretary. It applies both to elections at a general meeting (section 53-related exemptions) and to appointments by the council (section 55-related exemptions). Practitioners should therefore consider both the process (general meeting election versus council appointment) and the direction of movement between offices when advising clients.
Why Is This Legislation Important?
This Order is important because it addresses a practical governance problem in small strata developments: limited human resources. In a small strata title plan, the same residents often cycle through committee roles over time. Without exemptions, disqualification rules could prevent capable residents from serving in different offices, potentially undermining effective management and compliance with statutory governance requirements.
From an enforcement and compliance perspective, the Order reduces the risk of invalid elections or appointments due to technical disqualification. If an individual is “ineligible” under the Act, their election or appointment could be challenged, creating administrative disruption and potential legal uncertainty. By carving out specific disqualification scenarios for small management corporations, the Order provides a clearer legal pathway for legitimate office transitions.
For practitioners, the key value lies in precision. The exemptions are not blanket permissions; they are tied to specific disqualification clauses and to specific office movements. Advisers should therefore conduct a structured analysis: (1) confirm the strata plan has 10 or fewer lots; (2) identify whether the relevant action is an election at a general meeting or an appointment by the council; and (3) match the client’s intended office and prior office to the correct exemption provision (section 3, 4, or 5). This approach helps ensure that governance decisions are defensible and aligned with the statutory framework.
Related Legislation
- Building Maintenance and Strata Management Act (Cap. 30C) — in particular sections 53(9A), 53(9B), 55(7), and the enabling power in section 134(1)
- Building Maintenance and Strata Management (Exempt Treasurers) Order (O 1) — revoked by section 6 of this Order
Source Documents
This article provides an overview of the Building Maintenance and Strata Management (Small Management Corporations — Exemption) Order 2018 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.