A REVIEW OF SHARE UNIT IMPACT AS A VOTING DETERMINANT FOR STRATA SUBDIVISION TERMINATION IN MALAYSIA: A COMPARISON WITH SINGAPORE

Abstract

Buildings have a finite lifespan, and urban redevelopment initiatives are implemented to ensure the sustainability of cities. One legal solution for removing unsafe structures and making room for new developments is strata subdivision termination. In this process, the share unit, which determines an owner's contribution to building upkeep and voting rights, plays a vital role in decision-making. However, conflicts arise regarding the entitlements of share units, particularly in mixed-use developments. The current share unit formula lacks differentiation for limited access and benefits for certain parcel proprietors, resulting in potential prejudice and unfairness in the payment of maintenance fees. This review paper delves into the significance of share units in the context of strata subdivision termination and redevelopment in Malaysia and Singapore. Both Malaysia and Singapore calculate share units based on the floor area. However, their formulas differ in certain aspects. Unlike in other countries, Malaysia’s share unit’s entitlement does not determine ownership rights over the common property. Additionally, the termination of a subdivision requires a unanimous resolution, excluding invalid votes, and the share unit's significance regarding property value and compensation during acquisition is minimal. This article has been created using the qualitative approach, combining information gathered from dependable and pertinent statutes, books, journals, articles, case law, and seminar papers. The paper sheds light on the complexities and inequities associated with share units and emphasizes the necessity for further research to address these issues and emphasizes the importance of raising awareness about strata ownership's legal and practical aspects.