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.
PurposeAm 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.
ObjectiveTo 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.
LimitationsOnly address Schedule 2 of SMA for now.
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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”.
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(a) Ali is Chairman from 2014-2016, so 2017 he will be prohibited from being a Chairman.
(b) Ali is Chairman from 2014-2015, however he was committee member in 2016-2017. Hence Ali can become Chairman from 2018-2019.
2(6) Committee members, retire at the conclusion of AGM but eligible for re-election. Cannot hold office more than three consecutive terms.
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Note key word “Consecutive”.
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:-
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Ali owns 2 units of apartment in X villa. Ali nominates Laila.
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:
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Type 1:-
Ali and Laila are joint holders, Ali is nominated as treasurer. Laila is therefore disqualified.
Type 3:-
Disqualification “Nominated” in Same Election, example Ali, Laila and June are nominees of Peter, Peter nominate all 3 for chairman.
Disqualification “Elected” to the management committee at the same or “other election*”, example Ali, Laila and June are nominees of Peter, Peter nominate all 3 for management committee and all 3 are subsequently elected to the management committee.
*Other election, this most likely mean the subsidiary management committee.
Conclusion:-
For Type 3, it’s possible to have one EACH of his nominees in the following category Chairman, Treasurer, Secretary and Management Committee.
HOWEVER, such appointment is subject to the “Threshold definition”.
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
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11(a):-
Management Committee comprised of the following:-
10 (randomly elected) x 1000 sf condominium unit = 10,000 sf
Scenario A = not proportionate
4 (type 3) x 4000 sf condominium unit = 16,000 sf
Scenario B = proportionate
2 (type 3) x 2,000 sf condominium unit = 4,000 sf.
11(b):-
11(a) sometimes may not be practicable because the proprietor may own units smaller than 1000 sf (presumably 400-500sf?)
Illustration:-
4 (randomly elected) x 1000 sf = 4,000 sf
5 (type 3) x 800 sf = 4,000 sf
As shown in the illustration above, it’s clear that the type 3 proprietor controls more than 49% of the management committee.
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.
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Do not:-
- have lengthy discussions.
- slanderous or defamatory content.
- insulting, naming and shaming proprietors.
Do:-
- come to meeting with solutions.
- ignore hearsay.
- discuss issues only if it is properly supported by documents (i.e. complaint form), correspondences or CCTV recording etc…
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
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You may want to endorse an auditors appointment in the minutes and also issue the person concerned an appointment letter to avoid technicalities being raised.
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)
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Y condo has 100 units measuring 1000 sf per unit.
Ali wishes to convene an EGM, he need to liaise with owners with an aggregate share unit of 25,000 sf or approximately 25 unit.
Note: 11(2)(a) will need to observe 11(3).
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:
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management committee should take note of 11(6), if 11(b) not observed. You will end up paying for the EGM
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:
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additional requirements in 12(3).
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
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as to how motions are submitted by proprietors.
Note:
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Can invoke this Clause to veto any motions that are not covered in the Agenda.
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:
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A person may want to call a poll, if the result is uncertain or unfavourable. Say for example, A, B, C collectively own 200 sf, however D owns 5000 sf, D may want to call a poll, since 1 sf correspond with 1 vote.
Practical Issues:-
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Unfortunately, there is no stopping a person from creating a nuisance by calling a poll, even if the show of hands is overwhelming.
17(2)
- unless poll demanded (see 17(5))
- show of hands
- chairman to declare conclusive.
Interesting to note:
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You don’t even need to count the number of hands that were raised or tabulate those for or against a motion.
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:-
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In order to vote in a show of hand, the Co-proprietor will need to appoint a proxy.
22(3)
- poll is called by Co-Proprietor.
- his vote will be proportionate to his interest in the property.
Example of Use:-
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A & B own 100 sf. B calls for poll. His vote in a poll will only before 50sf or 50 votes based on his interest in the parcel.
This post has been edited by aurora97: Jun 18 2015, 05:28 PM