The Administration of Setting up JMBs and MCs Wisma REHDA, Kelana Jaya Thursday 14 January 2015
Developer Construction period Project Manager Transition period Dev. Property Manager & JMB Max. 12 months Joint Mgt Body Dev Mgt period Mgt Corporation Long term period MC Property Manager Transition period Joint Mgt Body & Mgt corporation Max 3 months
Developer Construction period Project 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 Obtained CCC Obtained vacant possession Joint Mgt Body Dev Mgt period Dev to call 1 st AGM of JMB Strata title book opens >1/4 of titles are transfered Dev to call 1 st AGM of MC Mgt Corporation Long term period MC Property Manager
Developer Construction period Project Manager Dev to Appoint JMB to Appoint MC to Appoint Transition period Dev. Property Manager & JMB Max 12 months Joint Mgt Body Dev Mgt period Mgt Corporation Long term period MC Property Manager Transition period Joint Mgt Body & Mgt Corporation Max 3 months
Developer Construction period Project Manager ACT 118 ACT 663 ACT 318 Joint Mgt Body Interim period Mgt Corporation Long term period
Developer Construction period Project Manager ACT 118 ACT 757 ACT 757 & 318 Joint Mgt Body Interim period Mgt Corporation Long term period
For Joint Management Body VP Date 1 st AGM of JMB Max 12 months 1 month Developer Management Period 7
For Management Corporation VP Date Strata book is open ¼ of title transferred 1 st AGM of MC 1 month 1 month Initial Period Preliminary Management Period 8
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 9
2. Strata Management AFTER the Existence of Management Corporation (PART V) Management by Developer before 1 st 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 10
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. 11
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. 12
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; 13
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. 14
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. 15
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. 16
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. 17
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. 18
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. 19
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 dayto-day basis; Paying for expenses incurred in providing cleaning and security services of common property; 20
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; 21
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. 22
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. 23
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. 24
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. 25
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. 26
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. 27
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. 28
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. 29
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; 30
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. 31
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; 32
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. 33
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. 34
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. 35
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. 36
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. 37
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. 38
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. 39
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. 40
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. 41
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. 42
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. 43
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. 44
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. 45
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 46
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. 47
Joint Management Body Joint Management Committee Min 3, Max 14 JMC Management Account Sinking Fund Account Purchaser By-laws NONE NONE Allocated Share Unit Management Corporation Management Committee Min 3, Max 14 Mgt Committee Management Account Sinking Fund Account Individual Proprietor or Owner By-laws Subsidiary Management Corporation Subsidiary Management Committee Share Unit 48
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 49
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. 50
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. 51
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. 52
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. 53
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. 54
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. 55
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 56
Section 66. Management Account of Sub-MC Section 67. Sinking Fund Accounts of Sub-MC 57
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. 58
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. 59
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. 60
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; 61
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. 62
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. 63
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. 64
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. 65
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. 66
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. 67
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. 68
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 7 th 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 69
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). 70
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. 71
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 72
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; 73
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. 74
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. 75
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. 76
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. 77
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. 78
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. 79
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. 80
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. 81
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; 82
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. 83
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. 84
Para 7 (10). The accounts of the MC shall be audited annually by an approved company auditor appointed by the management committee. 85
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. 86
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. 87
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. 88
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. 89
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. 90
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. 91
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. 92
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. 93
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. 94
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. 95
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; 96
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. 97
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. 98
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. 99
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. 100
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. 101
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 102
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