Very easy to get around the 1st hurdle, just become committeelor and switch back. Hahaha... Just switch around between cronies. As long as everyone is "yes" man life is LG.

The 2nd hurdle I like. Can appoint myself chairman and gm and pay myself a nice fat salary.

Wasted I work on voluntarily basis.

One lesson learnt...invite your local police and bomba for your raya party (+kueh with take away kotak), Chinese new (+ang pow), Christmas (+present) and all other festival and event.

It goes a very long way solving a lot of problem, the smell of problem alone they instantly appear like David copperfield. Normally, difficult owner akan dijempit minum kopi di balai.

Our security guard all trained to call police also. Hahahaha...

Management company 5 man team, 1 bm, 1acc, 1 general clerk, 2 Handyman - total approx RM 18.5 to 25k. Be mindful, you pay peanuts you get monkey. My first management team left in 5 months, second in 8 months and most recent barely surviving hahaha...

Focus facility followed by allied properties and now pama.

Welcome Eng_Tat!

The Act757 is a recommended bed time read. It has the power of a horse tranquilizer, if you feel insomniac pick it up and read it.

No fret, there are specific sections you can zoom in:-

(a) before/ in the midst of handover from developer to JMB
- see sections 9 to 16 of the SMA
- make sure you do a due diligence check on the accounts, the condition of the building, tools etc…

Case in point:-
Our swimming pool had a leakage problem that leaked into the basement car park (the swimming pool was directly on top). As an interim solution (which ironically became permanent), had built an awning to channel water leaked from the swimming pool away from parcel owners car park. This wasn’t discovered by JMB.

(b) JMB
- see sections 17 to36.

© Schedule 2
- this is really an important section of the SMA. You need to know this in and out. No skimping!

You can get it in many outlets, normally located in the law section. Ask for Act757, be it in Times, Borders or MPH.

If you are a cheapo like me, you can go for the soft copy. I normally store in mobile and I have a hardcopy print-out with me.

Cheap apartment or not, it’s still your home. If there is an issue you have to fix it. If owners are indifferent or divided, it gives opportunity for abuse or fraud to arise.

First you need to fix your by laws.

Parking, swimming pool and common area issues are normally attributed to lax security. Lax security is normally attributed to either non-existent by law, security team doesn’t know the by laws, lack of support from JMB/MC or the Security Company itself.

Once you have your by laws, cascade it down to your security team to enforce. Have a person in-charge of security guard, so that he can be a bridge between the security team and committee. Always, enforce by law first, if owner/visitor being difficult call the police in to intervene.

If your security guard is not doing their job, issue a warning letter and set-off against their security fees to let them know your serious. Take the time to interview other security firms, once you have found a suitable one you all your notices as basis to sack your existing security firm.

Yikes, roof leak! Expensive.



Attached File(s)
 Strata_Management_Act_2013.pdf ( 901.38k ) Number of downloads: 132

Now the SMA make recovery quite simple.

Step 1:-
- Assuming you give 30 days’ credit term.
- invoice date + 30 days.

Step 2:-
- 31st day, amount is considered DUE.
- service notice demanding payment.
- notice + 14 days.

Step 3:-
- file recovery claim with tribunal. (note recommended- court [first route too expensive] and section 79 [second route, unless the due is more than RM 100K, this route is very risky because you are about to foreclose a person’s property]).
- let the tribunal get its hand dirty.
- owner “without reasonable excuse” for not pay, commit an offence, liable to either fine of 5K or imprisonment not exceeding 3 years or both and RM 50K every day during the offence continues after conviction. (example: after being fined RM 1,000, the owner still refuse to pay the maintenance fee, he will be fined by court for every day he is in default).

I forgot to mention that it looks good on paper only. Not quite sure how it will work out in practice.

This post has been edited by aurora97: Jun 30 2015, 11:22 AM

See section 3(3) of schedule 2. It's on point.

Get the blue print and highlight the areas the owners have exceeded.

Give them notice to rectify. Example within 90 days.

If they fail to comply bring in COB.

This is the real deal.

I think what I have experienced, seen and addressed so far is child’s play compared to your problem.

Let me structure a plan of attack for you, will respond… *fingers crossed*

There are couple of things I need to caveat. I am not a lawyer, I am doing this out of interest and to expand my knowledge as an Ex-JMB member and also I will ensure that the condominium is satisfactorily run because it is my home. You should do your own research and due diligence before carrying out the action plan. This thread does not constitute legal advice, if you need proper advice please engage a professional to assist you.

The knowledge gained here is not an offensive tool to overthrow an existing management through technicalities. I will presume everyone has come to the forum has done so in good faith without any ulterior motives.

Before I address your questions, the ground works should be done (pursuing wrong doings will come later):-

1.1 First Step:
1.1.1 all JMB/MC members must read and understand the SMA 2013.
- the overall feel of it, the current management do not know their rights and obligations.
- example:

(a) ex-chairman invited to re-join JMB/MC, one can only join if elected through AGM/EGM.
(b) Managing Agent seem to be running the show.

1.1.2 Know your Basic Rights as a Committee Member.
- remove any one from JMB who is not duly elected during the AGM/EGM. (see s4 of Sch 2 SMA)
- the SMA 2013 recognizes the decision made during a committee meeting is the decision of the committee (see s3 Sch 2 SMA)
- do you have Chairman, Treasurer and Secretary in place? (see s5 Sch 2 SMA)

2.1 Second Step:
2.1.1 To carry out a transition exercise, you will need sufficient manpower to focus on each of the following areas:
(a) Administration/Treasury
(b) Security
© Maintenance
(d) legal

2.1.2 there are 3 phases to this exercise. You will need to set a timeline for completion before moving to another phase.
(a) collate
- to understand how your condo ticks, you first have to consolidate and review all information.
(i) Administration/Treasury
- you will need to review your income/expenses. This fairly easy because you have only one source of income. You should be able to projection your income vs expenditure.
- do a walkthrough of the condominium to establish assets that you have.
- establish a sinking fund, if you have yet to do so (see s24 SMA).

(ii) Security
- check on attendance.
- ensure that the security team enforce basic home rules, example visitors must register before entering premises.
- monitor and report back during committee meetings.
- attend morning/evening roll call. Request security report back any issues.

(iii) Maintenance
- landscaping/cleaner attendance.
- ensure that the landscaping/cleaner clean the requisite areas of the condo.
- attend morning/evening roll call. Request that they report back any issues. From what I understand, they are the best eyes and ears of the management. In my condominium, leakage or property damages are mostly reported by cleaners instead of owners.

(iv) Legal
- need to be well verse with SMA.
- works closely with Admin.
- collate and review all contracts.
- if no contracts are available, prepare contracts for the services.
- draft by-law, this is to be passed during AGM (s. 32(2) SMA)

(b) assess

- assess all the information collated.

Example:
- is expenditure more than income.
- is staff performing or sleeping on the job.
- is attendance complete (i.e. security company promised you 14 guards but during attendance count only 10 appear)

- take this time to search for other service providers and compare prices.

© remedy.

- You should maintain status quo in the interim until and unless you have completed the ground works (a) and (b). Do not sack any staff/service provider when you have yet to find a replacement.
- All agendas to be presented by respective divisions.
- you can choose to renegotiate pricing or terminate.
- if during your review, there is any wrong-doings, proceed to lodge police report, complaint to CoB etc…


3. Question:
1) Should we terminate the MA at this crucial moment? we are zero knowledge in JMB.
No. not unless you have found a suitable replacement. You need to him to handover to the new management. If he refuse to report police, complain to CoB and worse case, hull him up to tribunal.

2) All the while, MA manage the property on his favor, no house rules applied. Is it right on regulation that a JMB with no house rules enforced?
Should have house rules handed down from developer i.e. your Deed of Mutual Covenant is actually the initial house rules. Go search online, some condominiums publish their house rules online as well. If you do not have one, just draft one and have it passed during AGM.

3) All the invoices, statements, quotation and letters is safekeeping by MA and not in our JMB’s office. We have to write in to request access of documents. Is it the standard procedure?
Am not familiar with what is the standard procedures, the documents you mentioned on the other hand belong to the office of the JMB.

4) is it necessary to engage an MA? We're running low maintenance fund
If you can manage everything on your own should be fine. Otherwise, I suggest that you hire one instead. Too much hassle especially when you are just a volunteer.

5) any recommendation for good MA company? (Pls PM)
Please carry out your own research.

To be frank, it’s the key person is the building manager and not the managing company. If you can try and employ a senior BM, pay him a little extra. After having been through a musical chair of MA companies, I reserve my comments on this.

6) Is it ok if no contract bonded with security company and contractors?
Contract is a must have. We found that out the “HARD” way.

7) is it ok if no employment letter for workers? EPF and socso is paid to clerk only
You should have employment contracts with all your staff. It will come back and haunt you in the form of countless trips to labour department/court.
Statutory payments such as EPF and Socso, I reserve my comments but you should know better, to pay or not to pay.

8) We intended to sack the maintenance worker and cleaners. Because the maintenance worker is a person who declared bankrupt and he was being accused involved in few cars break-in/stolen and our JMB office break-in too (yet no proof). Three cleaners are illegal worker with no permit and passport. However, MA claimed they was employed by ex-chairman and not allowed us to sack them. Is it right?

For the maintenance worker - collate, assess and remedy.
For the MA – that’s why knowing your obligations under the SMA is important.

9) is it cost wisely if we intended to employ a hygiene company for apartment cleanliness?
Rule of thumb when searching for service providers…
- Find more than 1. If possible have 5.
- Compare price and services.
- pick the one that can provide most services at the lowest price.
*rinse and repeat for all other services*

10) In the first meeting of JMB formed in 2013, developer claimed there's about RM1 million+ losses as per management account. Therefore, Pengarah COB instructed must start with zero and no liability to be carried forward to the JMB. At that moment, there's a balance of RM300k+ in sinking fund account. Is it we still have the right to claim it back?

- what do you intend to claim back?
- assuming you intend to make a claim, it should be supported with documentation. You need to know what is in your books first.

11) Regarding Strata Title, how we gonna to start in order to push developer to apply from Jabatan Tanah? As in S&P, we have paid the fee to developer for strata title application.
I resigned before I saw the transition from JMB to MC due to disagreement with chairman. Am a bit sketchy on this part. Write to developer and send reminders, Cc: CoB and Jabatan Tanah of your respective area.


12) We would like to apply for Tabung Penyenggaraan 1Malaysia as we lack of fund to install barrier system and access card, CCTV, painting, fencing and purchase water pump. Is the application process will be complicated?
Out of scope.

Keep updating your case in this thread. I will try to reply.

All your answers….
Section 7(9) The management committee shall within twenty-eight days of a general meeting extend copies of the minutes of the meeting to all proprietors or display the minutes of the meeting on the notice board of the management corporation.

Meanwhile, if they still refuse to circulate minutes, file a complaint with CoB. If still no action forthcoming, you may want to file an action with tribunal.

Just to update:
1)our MA was tender his resignation verbally early of this month by giving reason: in order to maintain good relationship with JMB in future(But yet to receive his Resignation letter)



Do a reverse confirmation, example as follows:-

***

Dear Mr X,

I refer to the above subject matter and to our discussion on xx/yy/zz between yourself, Mr Y, Ms Q and Mr A in Club Aman.

We write to you to confirm the discussion that transpired on xx/yy/zz, you have indicated that you would want to resign from your position in the condominium as “MA” because you would want to maintain good relationship with JMB in the future.

We therefore take it that you have resigned on xx/yy/zz and that you will hand-in a resignation letter as a mere formality and for our record purposes.

Meanwhile, we would appreciate that you hand-over any documents, property, keys, equipment and such other things that belong to the JMB/MC.

We thank you for the services that you have rendered to the condominium.

***

Send one copy to Mr X and publish it on noticeboard as an appendix to a memorandum that states Mr X has resigned.

This is important so that Mr X does not interfere with the affairs of the condominium.




2)We already given termination notice to the maintenance guy until end of July. However, he is making big fuss now.

such as? Does he have an employment/service provider contract in the first place?

3)We are in the midst to prepare house rules, SOP, contracts and any other necessary documents

these are the foundation of making a better home.

Section 32 (JMB) and 70 (MC) are the relevant sections that deals with house rules. You need to get it endorsed by a special resolution



4)An EGM will be called by JMB in order to revise maintenance fee and announcing of property upgrading program.

Questions:
1)“Maintenance fee will be based on "Share Unit' instead of square feet of the unit itself.” - is it this only refer to those property which already get their strata titles?

need to do further research, good question though.

2)Refer to Act 757, Chapter 4, section 56(4): JMB has the right to determine the maintenance fee at AGM/EGM - is it any limitation? or we can propose any amount as long as Resident voted agree?
I think you crossed refer to the wrong section. Btw currently your JMB or MC?

I will presume you are an MC.

I believe the section you should be referring to is section 60(3) and (4). You cannot just simply raise the maintenance fees. Your maintenance should be used for the purposes stated in section 50(3).. This will require yourselves to tabulate your total cost incurred. The income that you receive should be sufficient to cover the cost incurred in section 50(3) and contribution to sinking fund.

- you can do this via a general meeting.
- before you raise price, you will need to provide a justification to the community. Profit and loss, month accounts and projections as to whether monies are sufficient to maintain the condo.



3)For sinking fund, is it necessary to open a separate banking account from maintenance fee account?
yes, must be separate (section 24(JMB)/61(MC)

4)Should we sent over every minutes meeting to COB for filling? Or only EGM’s minutes of meeting?


Tried looking for EGM, apparently you don’t need to. Only minutes of AGM is required to be filed with COB.
• (8) The management committee shall, within twenty-eight days of a general meeting, file with the Commissioner certified true copies of—
o (a) the audited accounts of the management corporation together with the auditor's report which has been presented to the general meeting;
o (b) the resolutions passed at the general meeting; and
o © the minutes of the general meeting.


5)Can you advise for procedure calling of EGM?

Item 11 of Schedule2, all there. I will just copy and paste.

6)Is it necessary to invite COB attend to our EGM?
no harm inviting them, more the merrier. Invite police and bomba as well, building the right cable will help in the long run.

7)For recovery, SMA is superceded Act 663, but COB still advise us to follow section 34, Building and common property act and COB will issue notice to unit owner to pay (s33,BCPA). Is it workable?

I don’t know to be honest. I suspect the tribunal is not in place yet. Hence, they asked you to refer to the old ways.

8)Referring to your recovery step no.2, only notice+14 days then we can take action against the stubborn owner. However, may I know what will happened after we file the recovery claim with tribunal? Is it tribunal will issue the owner a notice to remit payment immediately or a notice to attend tribunal hearing? I can’t search the location of tribunal, is it set up already?

answer in item 7 above.

9)For strata titles, we found out developer has been submitted application in 2012. Can you advise step-by-step on how to push developer to expedite? For your info, our developer is notorious in property.

Although the seminar I attended I felt was completely useless, it seems you have asked a question that is touched on during seminar.

Strata Titles (Amendment) Act 2013
- under the new regime, it is COMPULSORY for the developer to submit application for sub-division (i.e. issuance of strata title) during the super structure stage (as far as I know this is very early stages of construction). The intention is so that the strata title will be delivered together with VP, this eliminates rubbish like having Deed of Assignment and subsequently Memorandum of Transfer. [see section 8(2)/(3)]

Hey aurora97, so how does it concern me?

There is a transitional clause in which developers are forced to regularize their sub-division application. Example i.e. when building completed and 3 months after the commencement of the act. (see section 8(2) and 8A(1)).

I believe the circumstances that apply to your building is as follows: “ © when any parcels are sold and building is completed BEFORE the commencement of this Act, the period is 3 months from the date of commencement of this Act”.

Suggested:
1. Write to developer ask for status (give them 14 days to respond) [CC: Pentabir Tanah KL/PJ/Selangor etc…. )
2. no response send 1st/2nd and final reminder.
3. file eAduan with Pentadbir Tanah.

This post has been edited by aurora97: Jul 30 2015, 04:32 PM

Answer is no, additions/amendments can only be passed by special resolution.

For JMB refer to section 32.
For MC refer to section 71.

For tribunal, the procedures are on paper there but the actual institution and people have not been put in place. You can enquire further with COB.

It's considered very cheap to resolve a very tedious issue i.e. unpaid maintenance fees.

Your total cost is RM 100. whereas the defaulter can face possible fine and imprisonment.

Pretty good deal.

The rest such as going to court (costly) or seizing the property of the defaulter for auction to recover maintenance is a bad idea (you get the procedure wrong, your JMB might end up in court. Also resident may perceive JMB as being heartless).

I haven't look into Strata Management (Maintenance and Management) Regulations 2015 but I believe it's an extension of Act757 to fill it the gaps. example form 1 cost RM 100 and form 2 cost RM 50 etc...

This post has been edited by aurora97: Jul 30 2015, 06:45 PM

I would agree with you. I do not see any provision that requires the committee to go to AGM or EGM for approval before they can use the monies.

So long as the monies are used within the defined parameters of the act, it is considered as good.

Nevertheless, it would be a best practice that the committee should present the matter before AGM/EGM before utilizing the sinking funds.

Introduction

As I have always emphasize, as a committee member you need to look beyond the noise. You are not only serving the community on a volunteer basis but also you are defending your home. So each step you take must be calculated as it will become precedent for future committee.

Disclaimer

As you may or may not know, I am a former committee member. Am sharing my experience and advice in this forum, this is to enable me to solicit feedback and exchange ideas to continuously improve my train of though. Also, as an existing and future owner of a condominium, I would want to know my rights so that I can defend my home.

I would want to fore-warn that my experience and advice at times may be erroneous and untested, as I myself am a layperson attempting to interpret Act 757.

Should you make reference to any of the advice obtained herein, you (and your committee members) are reminded to read up on Act 757 and also to cross-check/refer all relevant information produced herein.

My views are provided in good faith and not intended for hostile takeover of a management committee.

Allegations and Assumptions

From the transcript you have produced, I have noted there are various allegations and assumptions levied against your chairman, secretary and managing agent. I urge caution, any criminal activity that is in an investigating phase and did not result in a subsequent “conviction” of that person does not mean the person is guilt of the crime.

Facts

We work based on facts and the parameters of Act 757. Anything beyond those parameters are deemed as “noise” or “distraction”. To get the facts, your committee will need to carry out a due diligence exercise to determine the health of your condominium.

3 Strikes

My style of work revolve around the 3 strike principle. You must first afford an opportunity to the offending person to rectify before you escalate to more drastic actions. This will give you sufficient justification to escalate the matter and not be viewed as acting “arbitrarily” or be involved in a “power tussle”.

Phases

Phase 1: authority

In this phase, your team should collate all relevant documents including contract with service providers and accounts.

> Roles

I think everyone needs to know their roles. A Chairman is no different from an ordinary committee member, same goes for Secretary and Treasurer except that they have an add on role. If he say that certain documents are PNC, request that he quote his source. If his adamant put it through a vote.

> Management Meeting

During the Management Meeting, raised this as an agenda (am assuming only the Chairman and Secretary are rowdy people) and request that the secretary include it in the minutes of meeting.

Note that any issues raised only requires a simple majority to be adopted. (section 5 of Schedule 2 SMA).

If the Secretary refuse to note it in the minutes, request that he/she state reason and note the same in the minutes.

Thereafter, pursuant to section 3(1)(f) of Schedule 2, raise an agenda that the Secretary has fail to perform his/her duty and vote that he/she vacate his/her position. This should be noted down.

Once the existing Secretary has been removed (and request to leave), raise an agenda to appoint an interim Secretary.

Do note that I wouldn’t motion for the removal of the Chairman yet, if you have majority votes, the Chairman is effectively a lame duck. If there is any wrong doing, it is better for a person to stay in office rather than being given the easy way out. Nevertheless, in worst case scenario, you may choose to vote out your Chairman as well but bear in mind it should be with a basis.

Secretary on the other hand is a very important position, all minutes recorded are prima facie evidence and can be tendered in court as evidence. (section 7(5) of Schedule 2 SMA)

Lastly, the minutes must be published in notice board (section 7(2) of Schedule 2 SMA)

Phase 2: collect

> New Managing Agent

Looking at how difficult your Managing Agent, I suggest that you immediate commence your search for a prospective managing agent. Have at least 3 quotes. This action should be documented in minutes as well. You must complete your selection of the Managing Agent within 1 months and your treasurer should do a projection, whether current income can sustain the appointment of the incoming managing agent.

> Request Managing Agent to produce Documents.

Write a formal letter attach with minutes to the Managing Agent (publish the same on notice board), requesting the Managing Agent to produce all documents within 14 days.

If he does not meet the timeline, issue another letter and give him another 14 days.

In your final letter, give him an ultimatum of another 14 days to produce.

All progress should be minuted.

If he fails to produce by final reminder, during the Management Meeting, raise an agenda to terminate the Managing Agent and to appoint a New Managing Agent.

N.B: If there is no agreement signed between the Managing Agent and the Condo, then use the basis that the Managing Agent’s failure to produce document in time to terminate their services.

Phase 3: Audit

> all documents collected should be reviewed according and you should allocate to the relevant people with expertise.

> in circumstances where there is financial irregularity, normally the accounts clerk, auditor and accountant will in on it. Raise an agenda to sack the existing auditor/accountant. Request that the new auditors and accountants carry out an ad-hoc check on the books.

> during this exercise you should also take the opportunity to review your contracts with service providers, where there is no contract with the respective service providers, request that the prepare one or raise and agenda to have them terminated.

Phase 4: collate

> during this phase you should have completed your audit and you have a rough idea as to the health of your condominium.

> collate all your documents and information.

> minute the outcome and any irregularities and wrong doings.

> if it is found that there is any irregularities and wrong doings found by any committee member or service provider current in your employment, issue show cause letter.

> if it is found a former committee member or service provider has commit wrong doings or irregularities, lodge police report.

Phase 5: AGM

Rather than call an EGM, waste of time, money and higher threshold.

Produce all your findings and supporting documents during the AGM.

Tender such other agendas as may be necessary.

Additional notations:-

Replacement of Chairman or Secretary (whichever applicable)

If a person is vacated from office because of the reasons stated in section 3(1) of Schedule 2, you may appoint another proprietor to be member until the next annual general meeting (section 3(5) of Schedule 2)

@cherroy
Nasi dah menjadi bubur, there’s nothing much can be done now but to keep the show going.

@Eng_Tat
Meanwhile, advisable to read up on Act 757, in future and once you appoint a new management company, you can ask them to brief you on AGM procedures.

Saga or not saga, if you are an owner in a condominium. You should take interest in the affairs of your condominium.

My condominium was plagued by mismanagement, by the time we discovered how big the hole was, the ex-chairman had already siphoned off approximately RM 600K (identified through accounts) and RM 1 million (rough estimation). The identified portion has since been recovered by us. He has been charged with CBT but it took close to 2 years to bring him to court.

For a 3-4 year old condo, with an estimate income from maintenance at approximately gross Rm 1.4 mil. We anticipated there should be about 600K as cash in hand (maintenance and sinking fund). But this couldn’t be further from the truth, there was no sinking fund and our cash in hand had dipped below 300K. We were also behind in payment for security service, lift service, cleaner, landscaping and so on.

It would take only one big capital expenditure to wipe us off. Yes, JMB/MC can be subject to winding up petitions.

am sure the rest of owners willing to pay for these ad-hoc appearance by a reputable solicitor.

From my experience and what I have observed, there is no necessity to employ a lawyer on an ad hoc basis to ensure procedures are followed.

A cost saving measure would be to have everyone in the condominium take interest in the affairs of the condominium, it is ignorance of the people who live in the condominium that breeds abuse.

Likewise, it is because of inefficiencies in the system that line the pocket of lawyers.

hence 1st rule of formation should also include 'salary' to its member to appreciate proper work done by them.

Careful what you wish for.

Work volunteer basis = feel like thankless job.
Work for salary = people will treat you as though they own you.

as i said it before, property management is a mega business. each building easily running into millions per annum. it definitely needs more monitoring and

am skeptical about this statement, if it is such a good business to be a property management company, developers/real estate related firms would have been the first to venture into it and profit from the residence of the condominium.

am pretty certain that the problems encountered in a condominium far outweigh the economic benefits of running a property management company. You may do well in one condominium, as the business gradually expand that's when the quality and delivery tend to deteriorate.

the last management company we had was Focus Facilities, each committee member had to literally breast feed the staff for one year until we got so sick of them, we terminated their services.