the administration of setting up jmbs and...
TRANSCRIPT
The Administration of Setting up JMBs and MCs
Wisma REHDA, Kelana JayaThursday – 14 January 2015
Construction periodProject Manager
Transition periodDev. Property Manager & JMBMax. 12 months
Dev Mgt period
Transition periodJoint Mgt Body &Mgt corporationMax 3 months
Developer
Joint Mgt Body
Mgt CorporationLong term period
MC Property Manager
Construction periodProject Manager
Dev Mgt period
Developer
Joint Mgt Body
Mgt CorporationLong term period
MC Property Manager
• Inspection of the finished property• Defects notification/rectification • Settle all payments due• Hand-over of unit keys• Hand-over of common property
from Project Mgr to Property Mgr • Settle all payments due• Transfer of titles to purchasers• Dec to call for 1st AGM of MC • Hand-over acct and record to MC
Stra
ta ti
tle b
ook
open
s
>1/4
of t
itles
are
tran
sfer
ed
Dev
to c
all1
stA
GM
of M
C
Obt
aine
d va
cant
pos
sess
ion
Obt
aine
d C
CC
Dev
to c
all 1
stA
GM
of J
MB
Construction periodProject Manager
Dev Mgt period
Transition periodDev. Property Manager & JMBMax 12 months
Transition period
Developer
Joint Mgt Body
Joint Mgt Body &Mgt CorporationMax 3 months
Mgt CorporationLong term period
MC Property Manager
JMB to Appoint MC to Appoint
Dev to Appoint
Construction periodProject Manager
Interim period
Developer
Joint Mgt Body
Mgt CorporationLong term period
ACT 118
ACT 663ACT 318
Construction periodProject Manager
Interim period
Developer
Joint Mgt Body
Mgt CorporationLong term period
ACT 118
ACT 757ACT 757 & 318
7
For Joint Management Body
VP Date 1st AGM of JMB
Max 12 months 1 month
Developer Management Period
8
For Management Corporation
VP Date 1st AGM of MC
1 month
Preliminary Management Period
¼ of title transferred
Strata book is open
1 month
Initial Period
9
1. Strata Management BEFORE the Existence of Management
Corporation (PART IV)
Management by Developer before JMB is established
Management by Joint Management Body
Miscellaneous provisions applicable to this Part
Transitional and saving provisions due to the repeal of Act 663
10
2. Strata Management AFTER the Existence of Management
Corporation (PART V)
Management by Developer before 1st AGM of MC
Management after first AGM of the MC
Subsidiary of MC and Limited Common Property
Miscellaneous Provisions Applicable to this Part
Transitional and saving provisions due to consequential
amendments to the Strata Titles Act 1985
11
3. Managing Agent (PART VI)
4. Deposit to Rectify Defects (PART VII)
5. Insurances (PART VIII)
6. Disputes and Strata Management Tribunal (PART IX)
7. FIRST Schedule – Formula for the Computation of the Allocated
Share Units of Parcels in Relation to Building or Land Intended for
Subdivision into Parcels
8. SECOND Schedule – Provision for Management Corporation
9. Strata Management (Maintenance and Management)
REGULATIONS 2015.
12
Section 7. Application of this PART IV.
VP of the parcel has been delivered by the Developer to
Purchasers.
At the time of delivery of VP, the MC has not come into existence.
“Developer management Period” means the period commencing
from the date of VP until Once Month After the Establishment of
JMB.
13
Section 9. Duties and Powers of Developer during Developer’s
Management period.
Section 9 (2). Duties of the Developer
To determine and impose Charges to be deposited into the
Maintenance Account;
To determine and impose contribution to the sinking fund to be
deposited into Sinking Fund Account;
To effect insurance;
To comply with any notice or order given or made by local
authority or any competent public authority;
14
Section 9. Duties and Powers of Developer during Developer’s
Management period.
Section 9 (2). Duties of the Developer (cont’d).
To prepare and maintain a register of all parcel owners of the
building;
To ensure that accounts are audited and to provide audited
financial statements for information to all purchasers.
To enforce by-laws;
To do such other things as may be expedient or necessary for
proper maintenance and management of the buildings.
15
Section 9. Duties and Powers of Developer during Developer’s
Management period.
Section 9 (3). Powers of the Developer
To collect Charges from all purchasers.
To collect the contribution to the sinking fund.
To authorize expenditure for the carrying out of maintenance and
management of the buildings.
To recover from any purchaser any sum expended by the
Developer.
To do all things reasonably necessary for the performance of its
duties under this Act.
16
Section 9. Duties and Powers of Developer during Developer’s
Management period.
Section 9 (4). During the Developer’s Management Period.
The Developer shall ensure a separate and distinct area is set
aside out of the common property of the development area for
the sole purpose of an administration office for the carrying out of
duties.
The Developer shall NOT enter into any contract relating to the
maintenance and management of the buildings for any period
after the expiration of the Developer’s Management Period.
17
Section 9. Duties and Powers of Developer during Developer’s
Management period.
Section 9 (5). Any developer who fails to comply (1), (2) and (4)
commits an offence and shall, on conviction, be liable to a
fine not exceeding RM250,000 or a max 3 years
imprisonment or both.
18
Section 10. Developer to Establish Maintenance Account.
Section 10 (1). A Developer shall open one maintenance account in
respect of each development area;
If VP was delivered before the commencement of the Act – on the
date of the commencement of this Act.
If VP is delivered after the commencement of the Act – any time
before the delivery of VP.
But in any case, before the Charges are collected from the
Purchasers.
19
Section 10. Developer to Establish Maintenance Account.
Section 10 (3). The Developer shall deposit into the maintenance
account: -
The Charges received by the Developer from the purchasers.
The Charges to be paid by the Developer in respect of UNSOLD
units.
AND all such moneys shall be deposited into the maintenance
account within three (3) working days of receiving the moneys.
20
Section 10. Developer to Establish Maintenance Account.
Section 10 (4). All Moneys in the Maintenance Account shall:
NOT for part of the property of the Developer
Be held in trust for the purchasers;
Only be used by the developer SOLELY for the purpose of
meeting the actual and expected general or regular expenditure
necessary;
Maintaining the common property in good condition on a day-
to-day basis;
Paying for expenses incurred in providing cleaning and
security services of common property;
21
Section 10. Developer to Establish Maintenance Account.
Section 10 (4). All Moneys in the Maintenance Account shall:
Paying any premiums for the insurance;
Complying with any notice or order given or made by local
authority
Minor painting work on common property;
Carrying out inspection, replacing and repairing of all electrical
wiring system of the common property;
Carrying out inspection, maintenance and repair of the main
water tanks;
Paying rent and rates;
22
Section 10. Developer to Establish Maintenance Account.
Section 10 (4). All Moneys in the Maintenance Account shall:
Paying any fee incurred for the auditing of the accounts;
Paying all charges reasonably incurred for the administration
of the accounts;
Paying the remuneration or fees for the managing agent;
Paying any expense, cost or expenditure in relation to the
procurement of services;
Meeting other expenses of a general or regular nature.
23
Section 10. Developer to Establish Maintenance Account.
Section 10 (5). In the event that:
1. The developer enters into any composition or arrangement with
his creditors or has a receiving order or an adjudications order
made against him;
2. The developer, being a company, goes into voluntary or
compulsory liquidation,
The moneys in the maintenance account shall vest in the
administrator, official receiver, trustee in bankruptcy or liquidator.
24
Section 10. Developer to Establish Maintenance Account.
Section 10 (6). Any money remaining in the maintenance account
after all payments have been properly made shall be held by the
administrator, official receiver, trustee in bankruptcy or liquidator and
shall be transferred into a maintenance account in the name of
the JMB.
25
Section 10. Developer to Establish Maintenance Account.
Section 10 (7). Any person who fails to comply with subsection (1),
(2), (3), (4), (5) or (6) commits an offence and shall, on conviction, be
liable to a fine not exceeding RM250,000 or a max 3 years
imprisonment or both.
26
Section 11. Developer to Establish Sinking Fund Account.
(same as Section 10, except the purpose of Sinking Fund)
Section 12. Purchasers and Developer to Pay Charges and
Contribution to Sinking Fund.
Section 12 (2). The Developer shall pay the Charges and contribution
to the Sinking Fund in respect of the UNSOLD units, being
the sum equivalent to the Charges and contribution to the
Sinking Fund, payable by the Purchasers.
27
Section 12. Purchasers and Developer to Pay Charges and
Contribution to Sinking Fund.
Section 12 (4). The amount of contribution of the Sinking Fund shall
be a sum equivalent to 10% of the Charges.
Section 12 (9). Any Developer who fails to comply with subsection (2)
commits an offence and shall, on conviction, be liable to a
fine not exceeding RM20,000 or a max 3 years
imprisonment or both.
28
Section 13. Prohibition on Collection of Moneys Before Accounts are
Opened.
Section 14. Duties of Developer in Relation to Accounts
Section 14 (1) (b) (ii). In the case where the accounts are to be
presented at the first AGM of JMB, audited up to a date not
earlier than three (3) months before the meeting.
Section 14 (1) (c). File with the Commissioner a certified true copy of
the audited accounts within 14 days of the accounts
being audited.
29
Section 14. Duties of Developer in Relation to Accounts
Section 14 (5). Any Developer who fails to comply with subsection (1),
(2), (3) and (4) commits an offence and shall, on conviction,
be liable to a fine not exceeding RM250,000 or a max 3
years imprisonment or both.
30
Section 15. Handing Over by Developer to the Joint Management
Body
Section 15 (1). A Developer shall before the Developer’s management
period expires:
a) Transfer all balances of moneys in the maintenance and sinking
fund account, after payment of all the expenditures which have
been properly charged to the accounts, to the JMB.
b) Hand over to the JMB;
The administration office set-up by the developer;
The audited account of maintenance and sinking fund account,
or if not audited, the unaudited accounts;
31
All assets of the development area;
All record;
All invoices, receipts and payment vouchers in respect of
maintenance and sinking fund accounts.
Section 15 (2). If only unaudited accounts have been handed over, the
developer shall, NOT more than 3 months after the Developer’s
Management Period, hand over the audited accounts up to the
date of transfer of balances of moneys to JMB.
32
Section 15 (3). The developer shall deliver to the JMB copies of the
following documents:
All approved plans for buildings or land;
Any document in the developer possession, as far as practicable,
the actual location of any pipe, wire, cable, etc.;
All contracts entered into by the developer in respect of the
maintenance and management of the building;
A copy of the schedule of parcels or a copy of the proposed strata
plan;
The names and addresses of such contractors and subcontractors
who supplied labor and materials;
33
All warranties, manuals, drawings, operating instructions, etc.;
The register of all parcel owners of the buildings;
The Original copy of all insurance policies.
Section 15 (4). Any Developer who fails to comply with subsection (1),
(2), and (3) commits an offence and shall, on conviction, be liable to
a fine not exceeding RM250,000 or a max 3 years imprisonment or
both.
34
Section 17. Establishment of JMB
Section 17 (1). A JMB shall be established upon the convening of the
First Annual General Meeting of the JMB;
If VP was delivered BEFORE the commencement of this Act,
NOT later than 12 months from the commencement of this Act, or
If VP is delivered AFTER the commencement of this Act, NOT
later than 12 months from the date of delivery of VP to
Purchasers.
35
Section 17 (5). If the MC comes into existence before the First AGM
of JMB is convened:
The first AGM shall NOT be required to be convened and NO
JMB shall be established.
The provision of PART V (the MC) of this Act shall apply.
36
Section 18. Duty of Developer to convene First AGM of JMB
Section 18(1). It shall be the duty of the Developer to convene the First
AGM of the JMB within a period specified in Section 17(1).
Section 18 (2). Any Developer who fails to comply with subsection (1)
commits an offence and shall, on conviction, be liable to a
fine not exceeding RM250,000 or a max 3 years
imprisonment or both.
Section 18 (3). The Developer shall give written notice of the first AGM
of the JMB to ALL purchasers NOT less than 14 days before
the meeting and A COPY of such written notice shall be
displayed at a conspicuous part of the Building.
37
Section 18 (4). The Developer shall prepare and place before the first
AGM of the JMB for consideration an ANNUAL Budget that
sufficiently sets the expected and estimated expenditure
which shall be for a Period of 12 months starting on the
first day of the month following the date of first AGM.
38
Section 19 (1). The Agenda of first AGM shall include:
To determine the number of Members of HMC and to elect the
Members of JMC;
To consider the annual budget prepared by the developer;
To determine the amount to be paid by a parcel owner as the
Charges and Contribution to Sinking Fund;
To determine the rate of interest payable by parcel owner in respect
of any late payment of the Charges or contribution to Sinking Fund.
To consider the audited accounts
To confirm the taking over by the JMB of insurances affected by the
Developer.
39
Section 19 (1). The Agenda of first AGM shall include:
To make additional by-laws;
To consider any other matter connected with the maintenance and
management of the common property of the building.
40
Section 19 (2). If within half an hour after the time appointed for the
meeting no purchaser entitled to vote turns up refuse to be
members of JMC, the Developer or the person appointed by
the commissioner to convene the meeting shall within 7 days
of the date of the meeting inform the commissioner and he
may:
Appoint new date for election of JMC;
Appoint Managing Agent to maintain or manage the Buildings.
41
Section 20 Duty of JMB to Inform Its NAME to Commissioner.
The JMB shall inform and register with the Commissioner the
NAME of JMB within 30 days from the date of First AGM.
The Commissioner may, upon an application by the JMB, issue a
certificate certifying that JMB has been duly established on the day
when the First AGM was convened.
The constitution of the JMB under this Act shall NOT be affected in
the event the First AGM is subsequently invalidated.
42
Section 21 Duty and Powers of JMB.
Section 21 (3). Notwithstanding any other provision of this Act, JMB
shall NOT enter into any contract relating to the maintenance
and management of the building for a period EXCEEDING
12 months.
43
Section 22 Joint Management Committee.
Section 22. The Provision of the Second Schedule shall APPLY to the
JMB and the JMC with MODIFICATION, including;
Section 22 (a). A reference to the MC shall be construed as the
reference to JMB.
Section 22 (b). A reference to Management Committee shall be
construed as a reference to the JMC.
Section 22 (c). A reference to Proprietors shall be construed as a
reference to Parcel Owners.
Section 22 (d). A reference to Share Unit shall be construed as the
Allocated Share Unit.
44
Section 22 (e). The constitution of the JMB and JMC shall INCLUDE
the Developer.
Section 22 (f). At any General Meeting, including the First AGM, for the
purpose of determining the Quorum, the Developer shall be
considered as ONE person, regardless of the number of
UNSOLD parcels.
Section 22 (g). At any General Meeting, including the First AGM, for
the purpose of determining the Voting Right, the Developer,
for the UNSOLD Parcels, shall be have the SAME Voting
Rights as the Purchasers.
45
Section 26 Duties of JMB in relation to Accounts
Section 26 (5) If the JMB fails to comply with subsection (1), (2), (3)
and (4), every member of the JMC commits an offence
and shall, on conviction, be liable to a fine not exceeding
RM250,000 or a max 3 years imprisonment or both.
Section 26 (6) In proceedings against the member of JMC for the
offence under Subsection (5), it is a defence is the member
proves that:
The offence was committed without his knowledge, consent or
connivance; and
He had taken all reasonable precautions and has exercised
due diligence to prevent the commission of the offence.
46
Section 27 Dissolution of JMB
Section 27 (1). A JMB shall dissolve 3 months from the date of First
AGM of MC.
Section 27 (2). The JMB shall NOT more than 1 month from the date of
First AGM of MC;
Section 27 (3) If only unaudited accounts have been handed over, the
JMB shall hand over to MC the audited accounts of JMB
NOT More than 3 months from the date of First AGM of
MC
47
Section 36 Moneys NOT Required for Immediate Use.
All moneys in the accounts which Exceeds RM5,000 and
which are NOT required for immediate use, shall be placed or
deposited by the Developer or JMB into an INCOME-
BEARING Deposit Account with a Bank or Financial
Institution.
48
Joint Management Body Management CorporationJoint Management Committee Management CommitteeMin 3, Max 14 JMC Min 3, Max 14 Mgt CommitteeManagement Account Management AccountSinking Fund Account Sinking Fund AccountPurchaser Individual Proprietor or OwnerBy-laws By-lawsNONE Subsidiary Management CorporationNONE Subsidiary Management CommitteeAllocated Share Unit Share Unit
49
Section 46 (1). Application of this PART V.
VP of the parcel has been delivered by the Developer to
Purchasers.
MC has come into existence under the provision of the Strata
Titles Act 1985.
Section 46 (2).
“Preliminary management Period” means the period commencing
from the date of VP until Once Month After the FIRST AGM of MC
50
“Initial Period” means the period commencing from the date of MC
comes into existence and ending when at least one-quarter (1/4)
has registered as the proprietor of the parcel, excluding the
original proprietor.
51
Section 57. Duty of Developer to Convene First Annual General
Meeting
1. It shall be the duty of the Developer to convene the First AGM of
MC within 1 month after the expiration of the initial period.
2. Any Developer who fails to comply with subsection (1) commits
an offence and shall, on conviction, be liable to a fine not
exceeding RM250,000 or a max 3 years imprisonment or both.
3. The Developer shall give written notice of the first AGM of the MC
to ALL proprietors NOT LESS THAN 14 days before the meeting.
A copy of such notice shall be displayed at the conspicuous part
of the building.
52
Section 63. Administration of the Subsidiary Management
Corporation
1. A subsidiary MC shall elect a subsidiary Management Committee.
2. The Subsidiary MC shall comprise all the proprietors of all parcels
comprised In the development area for whose exclusive benefit
the limited common property is designated.
3. The proprietors who constitute a subsidiary MC may call and hold
meetings and pass resolution in the same manner as MC.
4. At least 1 member of subsidiary Management Committee shall be
a member of the Management Committee of the Management
Corporation.
53
Section 64. Duties and Powers of Subsidiary Management
Corporation
1. A Sub-MC shall have the same powers and duties as the MC with
respect to any matter that relates solely to the Limited Common
Properties
2. After the establishment of the Sub-MC the MC shall retain its
powers and duties in matters concerning Common Property of
the development area which is NOT designated as Limited
Common Properties.
54
Section 64. Duties and Powers of Subsidiary Management
Corporation
3 (a). Subject to Section 66 and 67, establish its own maintenance
fund and sinking fund for common expenses of its limited
common property.
3 (b). Require proprietors of parcels in the Sub-MC to pay for
Charges and Sinking Fund.
3 (C). Enforce the By-Laws relating to its limited common property.
3 (d). Otherwise have the control, management and administration
of its limited common property.
55
Section 64. Duties and Powers of Subsidiary Management
Corporation.
4. A Sub-MC shall NOT enter into any contract or sue in the name of
MC and the MC shall have NO liability for contracts made or debts
or legal cost incurred by the Sub-MC.
5. A Sub-MC may obtain insurance ONLY:
Against risks that are NOT insured by the MC or,
For amount that are in excess of amounts insured by the MC.
56
Section 65. Expenses of Sub-MC
The expenses of Sub-MC that relate solely to its Limited Common
Property shall be shared, from time to time, by proprietors of all
parcels using the formula:
(A / B) * C
A is the share unit if a parcel;
B is the aggregate share units of all parcels
C is the total contribution determined by Sub-MC
57
Section 66. Management Account of Sub-MC
Section 67. Sinking Fund Accounts of Sub-MC
58
Section 87. Independence of Managing Agent
Section 87 (1). A person shall NOT be appointed as a managing
agent if he has a professional or pecuniary interest in any building
or land intended for subdivision.
Section 87 (2). A person is regarded as having a professional or
pecuniary interest in any building or land intended for subdivision
if:
a) He has been responsible for the design and construction of the
building.
59
b) He or any of his nominees, officers or employees has any
material interest in the building.
c) He is a partner or is in the employment of a person who has
any material interest in the building.
d) He or his family hold any interest in the building whether
directly as a trustee or otherwise.
Section 88. Managing agent to lodge bond.
A person shall NOT act as managing agent unless he has lodge
with Commissioner a BOND in the form approved by the
Commissioner and for the specified amount given by the bank,
financial institution or insurer.
60
Section 93. Duty to Insure Buildings
Section 93 (1). Any person or body who has a duty or is
responsible under this Act to maintain and manage any building
shall insure such building under a damage policy with a licensed
insurer.
Section 94. Amount to be Insured.
1. Any building shall be insured for at least the reinstatement value of
the building indicated by the last valuation obtained for the
building.
61
2. For the purpose of determining the reinstatement value that is
required to insured shall be obtained from a REGISTERED
VALUER at least once every five years.
3. The cost of such valuation shall be paid out from the maintenance
account.
Section 95. Insurance where area CANNOT be separated from main
premises of building.
Section 95 (1). Where any Limited Common Property is maintained
and managed by Sub-MC, the area CANNOT be separated from
the main premises;
62
The MC shall insure the building under a damage policy;
The premiums paid shall be apportioned between Sub-MC
and the MC in accordance with the share unit.
Section 95 (2). “Area CANNOT be separated from the Main
Premises” means the area maintained and managed by Sub-MC
DOES NOT Exist as an independent structure and any damage
to the structure or its facilities will materially affect the existence or
usability of all other structure.
63
Section 96. Insurance where area CAN be separated from main
premises of building.
Section 96 (1). Where any Limited Common Property is maintained
and managed by Sub-MC, the area CAN be separated from the
main premises;
The MC shall insure the building, EXCLUDING the area
managed by the Sub-MC.
The Sub-MC shall insured the part of the building
EXCLUDING the area managed by MC.
64
Section 96 (2). “Area CAN be separated from the Main Premises”
means the area maintained and managed by Sub-MC Exists as
an independent structure and any damage to the structure or its
facilities will NOT materially affect the existence or usability of all
other structure.
65
Para 2. Constitution of Management Committee
Para 2 (1). Every MC shall have a Management Committee, which
shall consist of such number of persons as the MC may determine
in a General Meeting, BUT in any case NOT LESS THAN 3 and
NOT MORE THAN 14 Natural Persons (INCLUSIVE of any
member of the Subsidiary Management Committee).
Para 2 (2). Where the MC has NOT MORE THAN 3 Proprietors, the
Management Committee shall consist of ALL Proprietors who are
Natural Persons or in case of a proprietor is a Company, Society,
Statutory Body and Any other Body, It’s Nominee.
66
Para 2 (3). Where the MC has ONLY 1 Proprietors, the SOLE
Proprietor may make any decision that a duly convened
Management Committee and any such decision shall be deemed
to be the decision of the MC.
Para 2 (4). All the Members of Management Committee shall be
ELECTED at each AGM of the MC.
Para 2 (5). There shall be a Chairman, Secretary and Treasurer, all
shall be Natural Persons, to be ELECTED by the Management
Committee from among its Member IMMEDIATELY AFTER the
CONCLUSION of the General Meeting, BUT No Chairman,
Secretary or Treasurer shall HOLD office for MORE THAN 2
Consecutive Years.
67
Para 2 (6). All Management Committee shall retire from office at the
conclusion of the next AGM. A retiring Member of Management
Committee shall be ELIGIBLE for re-election BUT no member of
Management Committee shall HOLD office for MORE THAN 3
Consecutive Terms.
68
Para 2 (7). A person shall NOT be eligible for election UNLESS he is
an individual of AT LEAST 21 years of age and who:
Is a Proprietor or a Co-proprietor of a parcel;
Is nominated for election by a proprietor of a parcel which is a
company, society, statutory body or;
Is NOT a proprietor BUT is a MEMBER OF THE IMMEDIATE
FAMILY of a proprietor who OWNS 2 or 3 parcels and is
NOMINATED for election BY that Proprietor.
69
Para 2 (8). A Proxy appointed by a proprietor shall NOT be eligible for
election.
Para 2 (9). Any individual shall NOT be eligible for election if, on the
7th day BEFORE the date of election;
Where he is a proprietor or co-proprietor of a parcel, ALL or
ANY Part of the Charges or Sinking Fund are in ARREARS;
Where he is nominated for election by a proprietor which is a
company, society or statutory body, ALL or ANY Part of the
Charges or Sinking Fund are in ARREARS;
Where he is a member of the IMMEDIATE FAMILY of a
proprietor who owns two or more parcels and is nominated,
ALL or ANY Part of Charges and Sinking Fund is respect of
ANY PARCEL are in ARREARS
70
Para 2 (10). The following persons shall NOT be eligible for election;
a) An individual who is a co-proprietor of a parcel with another one or
more co-proprietors, if any other co-proprietor of that parcel is also
a candidate at that election;
b) An individual who is nominated for election by a proprietor who
owns 2 or more parcels if:
That proprietor together with any of his nominees;
Nominated at the same election or;
Elected to the Management Committee a the same or
other election or;
That proprietor’s nominees;
EXCEED the threshold number for that proprietor determined in
the accordance with (Para 11).
71
Para 2 (11). The threshold number for that proprietor shall be;
a) The number of Management Committee members that is
proportional to that proprietor’s share unit, or
b) 49% of the number of Management Committee members
determined under sub-para (a), WHICHEVER NUMBER IS
LOWER.
Para 2 (12). For the purpose of Para 11, the word “PROPRIETOR”
shall include the Original Proprietor who owns two or more parcels
BUT shall EXCLUDE parcels has been sold who has YET to be
dully registered.
72
Para 2 (13). An Absent proprietor shall NOT be Nominated for
election UNLESS he HAS Appointed a Proxy AND has given
his WRITTEN consent to be nominated and elected as a Member
of Management Committee
73
Para 3. Vacation of Office of Member of Management Committee.
Para 3 (1). A person who is chairman, secretary or treasurer or a
member of Management Committee shall vacate or shall be
deemed to have vacated his office as such member if:
1. He resigns,
2. He dies,
3. He becomes a bankrupt,
4. He is no longer a proprietor,
5. He has been convicted on a charge is respect of:
a) An offence involving fraud, dishonesty or moral turpitude;
b) An offence under any law relating to corruption;
74
c) An offence under this Act or;
d) Any other offence punishable with imprisonment for more
than 2 years.
6. His conduct, whether in connection with his duties as a
member of the Management Committee or otherwise, has
been such as to bring discredit on the management committee
7. He is of unsound mind or otherwise incapable of discharging
his duties.
8. In the case of chairman, he absents himself from 3
consecutive scheduled meetings without the leave from the
management committee.
75
9. In the case of a member other than chairman, if he absent
from 3 consecutive meetings without the leave in writing from
the chairman.
10. In the case where the proprietor is a company, society, if he by
resolution removed as the representative of the company.
11. He is in default of payment of the charges or contribution to
the sinking fund (including interest) for a continuous period of
3 months.
12. In the case of a member of the management committee, if he
commits a serious breach of the by-laws and has failed to
remedy the breach within 14 days of the date of receipt of
notice from the management committee.
76
Para 3 (2). Within 14 days of the occurrence of any of the events in
Para 3. (1), except sub-para 3 (1) (10) the company, society may
appoint another representative to replace the member of the
management committee and to hold the office vacated.
Para 3 (3). Except where the management committee consists al all
the proprietors, the management corporation may, at any time, by
resolution at an EGM remove any member of the Management
Committee from the office and appoint another proprietor in his
place to hold office until the next AGM.
77
Para 3 (4). A member of the Management Committee may resign his
office at any time in writing under his hand addressed to the
management corporation.
Para 3 (5). Where a vacancy in the membership of the management
committee, the remaining members may appoint another
proprietor to be a member until the next AGM.
78
Para 5. Meetings and Proceedings of the Management Committee
Para 5 (1). The management committee shall meet at such times and
places and at such intervals as the chairman may decide, BUT the
chairman shall NOT allow more than 2 months to lapse
between meetings.
Para 5 (2). The chairman shall call for a meeting is requested to do so
by the Commissioner OR by at least 2 members of the
Management Committee, failing which the Commissioner may
appoint any member of the Management Committee to convene
the meeting.
79
Para 5 (3). Notice of every meeting shall be given to all members NOT
LESS THAN 7 days before the date appointed AND such notice
shall be displayed on the notice board of the MC.
Para 5 (4). Every meeting of the management committee shall be
presided over by the chairman of the committee and in the
absence of the chairman, the members of the committee who are
present may elect one of them to chair such meeting.
Para 5 (5). Questions arising at the meeting shall be decided by a
simple majority vote, in the case of equality of votes, the
chairman shall have a casting vote.
80
Para 6. Power to employ agents and servants
The management committee may employ, for and on behalf of the
MC, such agent and servant as it thinks fit on a yearly basis, in
connection with or to facilitate the exercise of the powers and the
performance of the duties of the MC.
81
Para 7. Keeping of records and accounts of MC
Para 7 (1). The management committee shall keep minutes of all its
proceedings and minutes of general meetings;
Para 7 (2). The management committee shall:
a) Cause a copy of the MoM of the management committee, which is
signed by the chairman of the meeting or the secretary, to be
display on the notice board within 21 days after the meeting;
b) Cause a copy of the Minute of any Resolution of the
management committee, or of the MC passed in accordance with
this Act to be displayed on the notice board within 21 days after it
is passed.
82
Para 7 (3). A copy of any minutes referred to in sub-para 2 shall be
displayed on the notice board UNTIL it is replaced by a copy of
the minutes of the subsequent meeting.
Para 7 (5). The MoM signed by the chairman of the meeting and the
secretary shall be admissible in any legal proceeding as prima
facie evidence of the facts stated in them WITHOUT further proof.
Para 7 (6). The management committee shall;
a) Cause to be prepared such accounts and records of accounts as
will sufficiently explain the transaction of the account and enable
true and fair balance sheet, income and expenditure statement
and profit and loss statement to be prepared;
83
b). On the application of a proprietor or chargee (or any person
authorized in writing by him) make a book of accounts available
for inspection during office hours of the MC, at a FEE NOT
exceeding RM50 each inspection.
Para 7 (7). The Management Committee shall prepare for each AGM,
proper accounts relating to all moneys of the MC and MC’s income
and expenditure.
84
Para 7 (8). The Management Committee shall WITHIN 28 days of a
general meeting, file with the Commissioner certified true
copies of;
a) The audited account of the MC together with the auditor’s report
which has been presented to the general meeting;
b) The resolutions passed at the general meeting;
c) The minutes of the general meeting.
Para 7 (9). The management committee shall WITHIN 28 days of a
general meeting extend copies of the MoM to all proprietors
OR display the MoM on the Notice Board of the MC.
85
Para 7 (10). The accounts of the MC shall be audited annually by an
approved company auditor appointed by the management
committee.
86
Para 8. Act of management committee valid notwithstanding Vacancy.
Any act or proceeding of the management committee done in good
faith shall, notwithstanding that at the time when the act of proceeding
was done, taken and commenced there was;
a) A vacancy in the office of a member of the management
committee;
b) Any defect in the appointment, or any disqualification of any such
member;
Be as valid as if the vacancy, defects or disqualification did not exist
and the management committee were fully and properly constituted.
87
Para 9. Resolution of the management committee in writing.
A resolution is taken to have been passed at a meeting of a
management committee if the resolution in writing is signed by every
member of the management committee indicating agreement with
the resolution, and in the absence of such agreement by EVERY
Member of the management committee, a meeting has to be held.
88
Para 10. Annual General Meetings. (AGM)
Para 10 (1). The MC shall hold an AGM for the consideration of
accounts, election of the management committee and the
transaction of such other matters as may arise.
Para 10 (2). The First AGM shall be held within one month of the
expiry of the initial period and the subsequent AGM shall be
held ONCE in each year, provided that NOT MORE THAN 15
months shall lapse between the date of one AGM to the next.
Para 10 (3). The holding of AGM out of time in breach of this para shall
NOT affect the validity of the AGM.
89
Para 11. Extraordinary General Meeting (EGM)
Para 11 (1). A general meeting of the MC other than the AGM shall be
known as the EGM
Para 11 (2). The management committee;
a) Shall convene an EGM upon requisition in writing made by
the proprietors who are together entitled to at least ONE-
QUARTER of the aggregate share units;
b) shall convene an EGM upon receiving a direction in writing
from the Commissioner for the transaction of such business;
c) May convene an EGM on such other occasion as it thinks fit.
90
Para 11 (3). The requisition shall state the objects of the meeting and
shall be signed by the requisitionist and deposited at the
registered office of the MC and may consists of several documents
in like form each signed by one or more requisitionists.
Para 11 (4). The EGM shall be held as soon as practicable but in any
case NOT LATER THAN 6 Weeks after;
a) The requisition has been deposited at he registered office of
the MC;
b) Receiving direction in writing from the Commissioner.
91
Para 12. Notice of general meeting
Para 12 (1). AT LEAST 14 days notice of any general meeting shall
be given to every proprietor
Para 12 (2). Every notice of general meeting shall include BUT NOT
be limited to the following;
a) The place, date and time for the meeting;
b) Each proposed resolution to be considered at the meeting;
c) A notification to each proprietor of his voting rights and that he
may vote in person or by proxy at the meeting.
92
Para 12 (3). In the case of AGM, the notice shall also;
a) Be accompanied by a copy of the Minutes of last AGM;
b) Be accompanied by a copy of the audited accounts together
with the auditor’s report on the accounts of the MC;
c) Specified any other matters to be considered at the meeting.
Para 12 (4). No motion shall be submitted at a general meeting
UNLESS;
a) Notice of the motion has been given in accordance with this
para;
b) The motion is a motion to amend a motion of which notice
has been so given.
93
Para 13. Requisition for motions to be included on agenda for general
meeting
Para 13 (1). Any proprietor may, by notice in writing deposited at the
registered office of the MC NOT LESS THAN 7 days before the
time holding the meeting, require inclusion of a motion as set
out in such notice in the agenda.
Para 13 (2). Upon receipt of the notice, the management committee
shall include the motion in the agenda and the notice of the
motion shall be displayed in the notice board of the MC.
94
Para 14. List of names of persons entitled to votes
The management committee of the MC shall PUT UP A LIST of
names of the persons who are entitled to vote at a general meeting
on the notice board at least 48 HOURS before the general meeting.
Para 15. Quorum at general meeting
Para 15 (1). ONE HALF of the proprietor entitled to vote present,
either in person or by proxy, shall constitute a quorum at a general
meeting.
Para 15 (2). If WITHIN HALF AN HOUR after the time appointed for a
general meeting, a quorum is not present, those proprietors
entitled to vote who are present shall constitute a quorum.
95
Para 18. Proxy
Para 18 (1). An instrument appointing a proxy, who need NOT be a
proprietor, shall be in writing;
a) Under the hand of the proprietor making the appointment or
his attorney and may be either general or for a particular
meeting
b) If the proprietor appointing the proxy is a company, society,
statutory body, either by seal or under the hand of an
officer or its attorney duly authorized.
Para 18 (4). A person may act as proxy for only ONE proprietor at any
one general meeting.
96
Para 18 (5). The Proxy shall be deposited at the registered address
of the MC NOT LESS THAN 48 hours before the time for holding
the meeting, failing which the proxy shall NOT be entitled to
attend or vote.
Para 23. Proprietor Representative
A proprietor who is NOT a natural person may be represented in any
meeting as follows;
a) If the proprietor is a company, by its representative duly
authorized under its seal or the hand of its director, or by any
duly authorized attorney or by its appointed proxy;
97
b) If the proprietor is a company where a receiver or a receiver
and manager is appointed, by the receiver and receiver and
manager or a person duly authorized or by its appointed proxy.
98
Form 1. Form to be filed with schedule of parcels
Form 1A. Form to be filed with revised schedule of parcels
Form 2. Form to be filed with amended schedule of parcels
Form 2A. Form to be filled with revised amended schedule of parcels
Form 3. Assignment of allocated share units
Form 4. Handing over by Developer to JMB
Form 5. Notice of first AGM of JMB
Form 5A. Notice of resolution confirming charges, contribution to the
sinking fund and rate of interest determined by JMB.
99
Form 6. Certificate of establishment of JMB
Form 7. Handing over the JMB to MC
Form 8. Submission of audited account of moneys collected by
developer prior to establishment of JMB.
Form 9. Register of parcel owners
Form 10. Certificate of amount payable by parcel owner or prospective
purchaser.
Form 11. Notice of demand payment of sum due by purchaser or
parcel owner.
100
Form 12. Bond to be given by *bank/financial institution/insurer to
*JMB/MC/Sub-MC if Property Manager is NOT a registered
Property Manager.
Form 13. Handing over by the Developer to MC
Form 14. Notice of first AGM of MC
Form 15. Notice of resolution confirming charges, contribution to
sinking fund and rate of interest determined by MC.
Form 16. Notice of first AGM of Sub-MC.
Form 17. Notice of resolution confirming charges, contribution to s
inking fund and rate of interest determined by Sub-MC.
101
Form 18. Strata Roll For ……
Form 19. Certificate of amount payable by proprietor or prospective
proprietor.
Form 20. Notice of demand payment for sum due by proprietor
Form 21. Sworn application for warrant of attachment
Form 22. Record and statement of sale
Form 23. Management agreement with managing agent appointed by
CoB.
Form 24. Bond to be given by *bank/financial institution/insurer.
102
Form 25. Notice by developer of intention to deliver VP
Form 26. Notice of amount of deposit to rectify defects in common
property.
Form 27. Notice of claim against common property defect amount.
Form 28. Certificate of inspection for *inter-floor leakage/damage of
party wall.
Form 29. Order requiring attendance of any person.
Form 30. Order to provide translation
Third Schedule – BY-LAWS
103103