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Ya, that makes sense.

Introduction:-
This is still a draft commentary of Schedule 2 of SMA 2013.

Before you proceed to read the content of the commentary, you will need to:-

(a) READ SCHEDULE 2 of the SMA.
(b) understand this is a commentary, you will need to cross-refer with the clauses in Schedule 2.

Purpose
Am preparing this for my Condo's MC. I am not longer an MC member but I am still actively contributing for the benefit of the community and my own knowledge.

Objective
To enable reader of this document to instantly recognize key-areas of interest.

If my interpretation is incorrect, too complex or vague, please feedback and I will tweak it accordingly.

What do I need from you?

Your feedback and comments on or before 30 June 2015. Need to submit to my MC for their review. Our AGM coming up soon.

Don't understand or have a query?

Leave your comment in the thread or PM me and I will attempt to answer your questions.

Limitations

Only address Schedule 2 of SMA for now.

****************************Start of subject matter below***************************************


2(1) Management committee not less than 3 and not more than 14 natural person (Including subsidiary). -

2(4) Management committee elected during AGM.

2(5) Chairman, Treasurer, Secretary cannot hold office more than two consecutive years.
Example:
Note the word “Consecutive”.


2(6) Committee members, retire at the conclusion of AGM but eligible for re-election. Cannot hold office more than three consecutive terms.



2(7) Eligibility of management committee must be at least 21 years old:
(a)proprietor or co-proprietor of parcel (type 1);
(b)nominated for election by a proprietor of a parcel which is a company, society, statutory body or any other body (type 2); or
© is not a proprietor of a parcel but is a member of the immediate family of a proprietor who owns two or more parcels and is nominated for election by that proprietor. (Type 3)

Example for Type 3:-

THIS CLAUSE IS SUBJECT TO CLAUSE 2(9) AND 2(10).

2(8) Proxy CANNOT be committee member.
2(9) Disqualifications:-
On the seventh day before the date of election basically TYPE 1 to 3, their Charges or contribution to Sinking Fund still outstanding.

2(10) Additional Disqualification:-
(a)Type 1, if one already nominated, rest will be disqualified;
(b) Type 3, if…
(i) that proprietor or nominee, is nominated in the same election or elected to management committee at the same or other election.
(ii) that proprietor’s nominee,

Exceed the threshold stipulated in (11).


Example of Use:


2(11) 11(a) [Number of Management Committee x share units] must be equal to the share units of the proprietor;

11(b) exceed 49% of the Management Committee.

Example of Use



2(13) 1. Absent proprietor cannot be nominated for management committee.

2. unless appointed proxy has been given consent in writing to nominate and elect the “absent proprietor” as a member of the management committee.

3(1) Office deemed to be vacated:-
(a) resign
(b) dies
© bankrupt
(d) not a proprietor
(e) convicted on a charge of… (refer to schedule)
(f) conduct bring discredit to management committee
(g) unsound mind
(h) chairman, absent 3 consecutive meeting without leave
(i) any other member, absent 3 consecutive meeting without leave in writing of the chairman
(j) society/company/body, representative removed via resolution.
(k) default on charges or contribution to sinking fund, continues for 3 months.
(l) serious breach of by-laws, if capable of being remedied within fourteen days of notice but does not do so. Vacate means everything in 3(1). All other terms are known as “Defect” or “Disqualifications”. See application in Clause 8.

3(2) 3(1)(j) within 14 days of occurrence, can be replaced with another representative.

3(3) Management committee members can only be removed by EGM.

3(4) Resignation letter to be sent to management corporation.

3(5) Except where a member left office because of 3(1) and 3(3), members to appoint another proprietor to be member of the committee.

4 Quorum vs total number of members
2 = not more than 4
3 = 5 or 6
4 = 7 or 8
5 = 9 or 10
6 = 11 or 12
7 = 13 or 14 Quorum means the minimum amount of members required to convene a meeting.
5(1) - Chairman to determine time and place for meeting.

- Chairman cannot allow more than 2 months to lapse between meetings.
5(2) Chairman must call for a meeting:-
- called by Commissioner; or
- at least two members
Failing which Commissioner will appoint any member to convene the meeting.

5(3) Notice of meeting
- given to all members
-no less than 7 days before appointed meeting.
- displayed in notice board.

5(4) All meeting presided by chairman, if chairman absent, any members who are present shall elect one to chair the meeting.

5(5) - Simple majority to determine all questions.
- if equal, Chairman will cast vote.

7(1) Minutes for all proceedings and general meeting.

7(2)(a) -minutes to be signed by chairman or secretary.
-displayed on notice board within 21 days after meeting.

Keep minutes simple that relates to the affairs of the condominium.


See also 7(5).

7(3) -minutes on noticed board displayed until replaced by minutes of a subsequent meeting.
7(5) -minutes signed by chairman or secretary
- admissible in legal proceedings
- prima facie evidence of facts in them without further proof. Literally the minutes are taken as it is. If you dare to record it in your minutes, you better be well-prepared to defend every word and sentence in court.
7(6)(a) - Prepare accounts and records
-sufficiently explain transactions and accounts
- enable preparation of balance sheet, income& expenditure statement and P&L.

7(6)(b) - Inspection of books of accounts during office hours.
- can charge fees for EACH inspection.

7(8) 28 days after the General Meeting, file with the Commissioner CTC of:-
(a) audited account and auditor’s report;
(b) resolution passed; AND
© minutes. For ease of interpretation, I use “after” instead of “within”.

7(9) 28 days after General Meeting, extend minutes of meeting:-
- to all proprietors; or
- display on noticeboard.

7(10)
- accounts have to be audited annually
- by an APPROVED company auditor



10 Annual general meeting
10(1) to deal with accounts, election and transactions of such other matters.

10(2)
- first AGM within one month after expiry of initial period.
- subsequent AGM, once EACH year, provided not more than fifteen months lapse.

10(3) holding AGM out of time does not invalidate the meetings.

11(2) Extra-Ordinary General Meeting

2(a) requisition in writing by proprietors who are together entitled to at least one-quarter of aggregate share units.

2(b) direction in writing from Commissioner

2© management committee can call an EGM, if it thinks necessary.

Example 2(a)


11(3) The “requisition”, need to state:-
- the object of the meeting
- signed by the requisitionist
- deposited with Management Corporation.

11(4) EGM to be held no later than 6 weeks after:-
(a) requisition deposited with MC
(b) receive direction from Commissioner
11(5) If 11(4) not observed.

(a) Commissioner satisfied MC not properly constituted; or
(b) MC fail to observe timeline,

Commissioner may authorise a person to convene EGM.

Note:


12(1) -14 days’ notice of general meeting.
-give to all proprietor.

Email, fax, flyers or leaflets may be possible means of delivering the notice to the proprietors, however that should be proper record or audit trail to enable verification work to be carried out should it be necessary.

12(2)
-notice should include
(a) please, date, time
(b) proposed resolution
© notify proprietor of his voting rights, he may vote in person or by proxy.
Note:


12(3)
- notice shall also include:
(a) minutes of last AGM;
(b) audited account together with audited report.
© specify other matters to be considered at the meeting.

12(4)
No motion shall be submitted at general meeting, unless…
(a)unless given according to Clause 12(1),(2) and (3).
(b) motion to amend existing motion which was in the notice.

See Clause 13

Note:


13(1)
-Any proprietor.
- not less than 7 days before holding of meeting.
- notice in writing with the proposed motion to be tabled in next general meeting.

13(2) - upon receipt
- include motion in agenda of next general meeting
- notice of motion displayed in notice board.

14
- List of names entitled to vote
- publish on notice board
- 48 hours before meeting
See Clause 15, the list of names will be used to determine quorum for AGM.

15(1)
- ½ of proprietor present (include proxy)
- form quorum.
See clause 14, how to determine “proprietors entitle to vote”.

15(2)
-quorum not met.
- 30 minutes after the appointed time.
-those who are present will form quorum.

17(1)
Decision, either:-
- show of hands; or
- if demanded by proprietor or proxy, will be carried out by poll.

Example of Use:


Practical Issues:-


17(2)
- unless poll demanded (see 17(5))
- show of hands
- chairman to declare conclusive.

Interesting to note:


17(5)
- poll demanded
- result of the poll shall be deemed as resolution.

18(5)
- Proxy form must be deposited no less than 48 hours before meeting.
- failing which, not entitled to attend or vote.

21(1) Proprietor
- show of hands = one vote for each parcel
- on a poll = number of votes correspond with number of share units attached to his parcel (including provisional).

22(2) Co-Proprietors
- not entitled to vote in show of hands.
- except unanimous decision required.
- however can call for poll.
Note:-


22(3)
- poll is called by Co-Proprietor.
- his vote will be proportionate to his interest in the property.

Example of Use:-


This post has been edited by aurora97: Jun 18 2015, 05:28 PM

are these new rules just commence or already applied since 2013?

effective 1 June 2015.

I will post source once i find it.


Commencement Date: 1-6-2015 [see P.U. (B) 231/2015 dan P.U. (B) 237/2015] and 12-6-2015 [see P.U. (B) 248/2015]

I note the Royal Ascent date but it's the commencement date that counts.

see also: Federal Gazette

This post has been edited by aurora97: Jun 19 2015, 09:31 AM

It only gazetted this month, so only effective when it is gazetted.

gazetted 2013 but coming into force is 1 June 2015.

two different things.

like the PDPA gazetted 2010 and come into force some time 2014.

it's madness.

Wish to ask tai kors here whether this Strata Act 757 mention anything on the accessory parcel such as car park, that also require to pay maintenance fee?

Yes.

Maintenance fee will be based on "Share Unit' instead of square feet of the unit itself.

So the more car park the unit has, the more share unit.

While maintenance fee will be divided based on share unit.

Many thanks!
Saw this in the Act but don't know how to calculate
Btw, maintenance fee including accessory parcels has been fully enforced OR will be fully enforce in upcoming VP projects?

I don't think it has been fully enforced before, as we still see many still based on sqft of the size of the unit only.

With the new act, it should be fully enforced across Stratified properties across.
But I expect many still do not aware on this issue.

I still in the midst of finding out how to calculate.
So far what I gathered and knew is, the number of share unit of your property (including accessories parcel) does state clearly in your strata title.

You will find “Accessory Parcel” is actually part of a “Common Property”. (huh!?)

Yes, I didn’t believe it as well but there’s a logic behind it.

This is because the land has yet to be subjected to sub-division to individual proprietors.

What’s the impact?

Management by Developer and JMB, your maintenance fee is inclusive of the “accessory parcel” because it's part of the common proerty.

Whereas, when Management Company takes possession (refer:- section 42 Strata Title Act 1985) of the Common Property (i.e. land sub-divided) that’s when your “accessory parcel i.e. car park” will be kicked out of the “Common Property”. The Management Company will suddenly find itself with “extra parcels” of land to levy maintenance fee on.

Hence, it is said that it’s more worthwhile to become a committee member after JMB and during MC cause JMB normally lay the foundation and MC gets all the glory. LOL.

correct me if i am wrong, I am looking based on document... the practical aspect of it, I only hear about it cause I resigned during the transition

This post has been edited by aurora97: Jun 19 2015, 12:58 PM

Yes, strata title will stated clearly the unit syer

please if you can put it in a simpler term, as a recent buyer of high rise, what is this JMB and MC had to do with my unit lets say at bup of 2k and a 2 lots car park...

is it about my maint. fee psqft

Maintenance fee
Assuming maintenance fee is 0.2c psf.

During JMB, you will only pay for the built up area of 2K. (maintenance fee = 2,000 x 0.2 = RM 200)
During MC (which is after your JMB), you will pay for built up area of 2K + 2 lots (assuming 100 sf) of car park.
(maintenance fee = RM 220)


Why the difference?
Cause during JMB, still under master title. Your car park will form part of the Common Property.
After MC formed, you get your strata title. Your car park will appear as an accessory parcel in your title.

your da best got it

It won't be too much difference, unless your unit has plenty of accessories parcel, like 6 car park vs ordinary unit 1 or 2.

Hi, thought there's some latest rule in strata act that developer need to hand over VP to buyer with CCC and also strata title?

Is this true?

Sounds HDAish...

Anyway I will try and hunt it down.

Hi yea, maybe its HDA.. please share if you found out anything on this!

I can't seem to locate the right act, need to go back to office on Monday to do the research.