Section 56
Section 56
(1)
Upon the cancellation of the strata plan —
(a)
the original proprietor shall become entitled to all buildings or other improvements on the land;
(b)
the proprietors of the units registered as such immediately before cancellation of the strata plan shall not be entitled to any compensation from the original proprietor arising directly or indirectly from the cancellation;
(c)
every easement or other interest over any unit comprising part of the development shall be determined;
(d)
the memorandum entered on the original proprietor’s extract and in the Register in accordance with paragraph (b) of subsection (1)
of section 21 shall be deemed to be cancelled.
(2)
Upon the cancellation of a strata plan, the strata corporation shall be deemed to be dissolved; and unless otherwise determined beforehand by unanimous resolution of the persons who were the proprietors immediately before the cancellation, all money including insurance money received by the strata corporation and other assets not being part of the buildings and other fixed improvements on the land shall, subject to any right of set-off, be distributed among those persons according to their unit entitlements immediately before the cancellation.
(3)
Notwithstanding anything in subsection (2), the strata corporation shall be deemed to remain in existence to the extent that any debt is owing by it and in respect of any action pending against it, and the liability
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of the persons who were the proprietors immediately before the cancellation shall continue accordingly.
Application to Court for cancellation.