In your SPA, aside from the layout of your parcel unit, the strata plan also lays out the entire plan for your phase.

If you r a committee member, try and lookup the strata plan/title. It should define the specific parameter and coverage of your JMB/MC.

Am pretty certain, the coverage won't extend beyond your current phase.

the maintenance account is use for daily operational requirements, whereas the sinking fund is used for items that are required for "capital expenditure".

there is no requirement to call for an EGM or include as an agenda in AGM to seek approval from parcel owners before the JMB/MC can dip into either the maintenance or sinking funds.

However, the act is pretty strict and defines the parameters/purposes in which the funds may be used for.

Two relevant provisions are:
(a) sections 23 and 24 for JMB; and
(b) sections 60 and 61 for MC.

23. Joint management body to establish maintenance account


24. Joint management body to establish sinking fund account


This post has been edited by aurora97: Oct 30 2015, 09:03 AM

Unfortunately, the tribunal is not up yet (not sure when or will it ever be up). You can file a claim with the tribunal to compel the MC to convene an AGM. Avoid fines or penalties because ultimately the community ends up forking the bill.

p/s: i didn't see any sanctions in the Act itself for delays in commencing an AGM.

The best way would be to complain to your local COB, also enquire whether the tribunal has been set up or otherwise.

Judging from the response, I believe what you are referring to is the defaulters list.

My condo normally post people who have outstanding for more than 3 months, also the amount is usually one lump sum (rather than a breakdown).

There are those who argue that it infringes the Personal Data Protection Act.

A side note... of late defaulters have become law savvy...

I have enquired with the PDPA Commission as to whether the PDPA applies to condominium as well? Though there seem to be hints that it does, the enforcement and guidance on this subject matter is a bit sketchy.

I will go one step further, it is known certain condo management practice either "disconnecting" or "managing" the default owner's water supply. Again defaulters have suddenly become law savvy and argued it is their basic human rights etc...

Recent amendment to the legislation (forgot the name, will update once i find it) now requires Condo to switch from bulk water meter to individual water meter (direct to owner).

http://www.thestar.com.my/Metro/Community/...re-for-nothing/


don't understand the last part highlighted in bold.

Publishing of minutes is mandatory under Schedule 2, however publishing of monthly financial standing isn't. You can tell your MC is a good practice to adopt but if they know their stuff, they should be able to decline your request.


Highlighted in bold.

Our condo never experienced deficit but by the time the ex-chairman was caught pillaging the maintenance/sinking fund, the condo has only about RM 200K in cash in bank with no sinking fund. How does one sustain 432 Condominium units with RM 200K?

Anything is possible i guess?

If its minuted and confirmed in the subsequent minutes of meeting, I don't see why the Management Agent (including the Chairman) should hinder the committees request.

In the next committee meeting, to request the Chairman and Management Agent to provide a reason as to why they refuse to provide the requested information.

If the reason given is not satisfactory, move to terminate the Management Agent, suspend the Chairman and make a report to the authorities both police and COB. You need only a simple majority to move an agenda.

Section 5(5) of Schedule 2:-


In the interim, quickly identify a prospective Managing Agent and accounting firm to ensure continuity and handover of work.

This post has been edited by aurora97: Nov 9 2015, 11:44 AM

What's the words highlighted in bold?

I don't know about HBA but accounts and minutes need to be submitted to COB. COB does nothing. In other words, they collect report for the sake of doing it and they lack provision that allow them to take punitive action against naughty JMB/MCs.

Interesting to note, last month meeting canceled, in any case:-

Schedule 2 saz the following:-

Your minutes is your first line of defence should any query arise.

7(5) The minutes of the meeting signed by the chairman of the meeting or the secretary shall be admissible in any legal proceedings as prima facie evidence of the facts stated in them without further proof.

Keep it neat, clean and simple.

Structure your question and record the desire response.

Omit allegations (example I think Abu "slept" with Ah chin's wife, I saw him entering...).

Include facts (example my name is Ah Kau.)

Facts that are supported (example my NRIC is xxx *produces NRIC for cross-check)

A reader must be able to pick up the gist of the issue quickly. after dealing with both police, COB and court, 3 paragraph is like asking them to read a book.

Your second line of defence would be to notify the Police and COB, this is to inform them that there is potentially some criminal element in play. It will help with recoveries of monies later on (if any).

proprietor who owns two or more parcels

No. unless your proxy comply with 2(7) Schedule 2 of the SMA.

Example:-

Assuming you have nominated your wife to be your proxy, during the nomination for committee members, she is not eligible for nominate any committee members.

Situation would have been different IF:-

(a)proprietor or co-proprietor of parcel;
(b)nominated for election by a proprietor of a parcel which is a company, society, statutory body or any other body; 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.

The key word is “Proprietor”.

1. if it’s not in the law (i.e. SMA) itself, that would probably mean that certain aspects of the AGM is self-regulated.

Example:-

In my condo, nomination is done via the AGM itself.

Previously, was based on the highest number of votes will become Chairman, Treasurer and Secretary etc… Nowadays, people just nominate and seconded. The people who are nominated will later during the committee meeting itself determine who will be chairman, treasurer and secretary etc…

Previously, we have people resigning from key-positions and internal the committee appoints amongst themselves to that key position. The question would be whether this would infringe the mandate given during AGM to that particular person?

2. For motions to be entered into an AGM, refer to item 13(2) of Schedule 2, this provision is very specific to deal with new motions (unlike your earlier question). If a new motion was raised during the AGM itself, it would probably be vetoed because of this provision.

Requisition for motions to be included on agenda for general meeting
13. (1) Any proprietor may, by notice in writing deposited at the registered office of the management corporation not less than seven days before the time for holding the meeting, require inclusion of a motion as set out in such notice in the agenda of the next general meeting of the management corporation.
(2) Upon receipt of the notice under subparagraph (1), the management committee shall include the motion in the agenda of next general meeting, and the notice of the motion shall be displayed on the notice board of the management corporation.

Also worth noting is item 12 of Schedule 2, “Notice of general meeting”:-
12. (1) At least fourteen days' notice of any general meeting shall be given to every proprietor.
(2) Every notice for a 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; and
© a notification to each proprietor of his voting rights and that he may vote in person or by proxy at the meeting.
(3) In the case of an annual general meeting, the notice in subparagraph (2) shall also—
(a) be accompanied by a copy of the minutes of the last annual general meeting;
(b) be accompanied by a copy of the audited accounts together with the auditor's report on the accounts of the management corporation; and
© specify any other matters to be considered at the meeting.
(4) No motion shall be submitted at a general meeting unless—
(a) notice of the motion has been given in accordance with this paragraph; or
(b) the motion is a motion to amend a motion of which notice has been so given.

3. Nothing in the SMA about authenticating a proxy form…
In my view upon receipt of proxy forms by the management office, I would reckon it’s the management office’s duty to call up the proprietor to check and see whether the proprietor has indeed executed a proxy form.

Both proprietor and proxy can call for poll:-
Manner of deciding matters at general meeting
17. (1) Any matter that requires a decision at a general meeting shall be decided on a show of hands unless a poll is demanded by a proprietor or his proxy.

Procedures for Proxy
Proxy
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; or
(b) if the proprietor appointing the proxy is a company, society, statutory body or any other body, either under seal or under the hand of an officer or its attorney duly authorized.
(2) An instrument appointing a proxy if made under the hand of an attorney shall be accompanied with a copy of the power of attorney.
(3) The instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll.
(4) A person may act as proxy for only one proprietor at any one general meeting.
(5) The instrument appointing proxy shall be deposited at the registered address of the management corporation not less than forty-eight hours before the time for holding the meeting or any adjournment of the meeting at which the person named in the instrument proposes to vote, failing which the proxy shall not be entitled to attend or vote.

4. Except for item 21(2) of Schedule 2, there are no restrictions on late comers.

Voting rights of proprietor
21. (1) Each proprietor who is not a co-proprietor shall have one vote in respect of each parcel on a show of hands, and on a poll, shall have such number of votes as that corresponding with the number of share units or provisional share units attached to his parcel or provisional block.
(2) A proprietor shall not be entitled to vote if, on the seventh day before the date of the meeting, all or any part of the Charges, or contribution to the sinking fund, or any other money due and payable to the management corporation in respect of his parcel are in arrears.

To answer your question on quorum for AGM, you first need to understand the following:-

1. Who is an eligible proprietor to cast vote in an AGM? (schedule 2 section 21(2))
On the 7th day before AGM, he has paid all maintenance, sinking fund and such other fees due to the JMB/MC

2. Quorum (schedule 2 section 15(2))
half an hour after the meeting time, whoever present will form the quorum for the meeting.

Whether it is right or wrong, is not for me to comment. IT is the law.

From what i gather, the billing period and charging of interest vary from condo to condo. It depends on the management. Some give 7 days, others 14 days etc... also, my condo charge 8% per annum interest.

Best you check with your management.

the Act doesn't say anything about billing cycles. it does say however the obligation to collect maintenance/sinking fund rest with the management.

if you feel that you did not receive your invoice in a timely manner, please convey your concerns to management.

Act 757 just say duty of management to collect, it doesn't say the timing.

Say ur management gave 14 days payment term. 14 days from the date of invoice you will need to pay. On the 15th day you will need to pay late payment interest.

If u unsure or in doubt, ask your management to show u the formula as to how they computate late payment interest.

Hi guys, I'm so glad i bump into this thread and especially aurora for much appreciated contributions.

Am just sharing my thoughts and experience, not necessarily correct. There are other forum contributors who can chip it and make the answer complete.

I think a lot of condo owners face same problem, its more or less a problem solving game if you ask me.

Bought my apt around 2011, tenant around 2012, attended AGM 2013. Somehow a motion was passed for the JMB to stay for 3 years. 2013-2016 *i admit of being ignorant at that time but for couple of years i was oblivious to the workings of JMB as long as basic needs are met. JMB was doing good with the place.

Since the infringement occurred before Act 757 came into play, I will use Act 663 instead.

“Section 9 Act 663”

9. Annual general meeting
(1) An annual general meeting of the Body shall be held to consider the Building Maintenance Fund and to transact such other business as may arise.
(2) The annual general meetings shall be held once in each year and not more than fifteen months shall elapse between the date of one annual general meeting and the next.


Up till last year things starts detoriating, changing of MA and staffs, security guards company changes etc. Andl last stroke, management office close for 2-3 weeks. That freaked me out. As i don't want my community to bad.

That is normally the case, the first 3 years of staying in my condo… everything was gorgeous i.e. staff, security guard, landscaping etc.. then suddenly everything start to fall apart because the cost now outstrip the monies available in the bank.

If a JMB abuse the funds, normally he will first pillage the sinking fund and thereafter the maintenance fund. After that, it will be using maintenance fee on a month to month basis to cover the gaps.

So i read around what JMB do and decided to be an active participant in the next AGM. The current chairperson to his credit did a find job up till last year since around 2010 and the current JMB is 3 years old with most of the member were in previous JMB too.

Same story line. We thought our JMB and especially the chairman was doing a good job. He lined his pocket and his cronies, we managed to make him account for RM 600K but my rough estimation during the 3 years… it would be more like within a region of RM 1-2mil.

Any advice on what to look out for? How do i get nominated? I received the AGM meeting with previous year AGM Mom but it did not include the audited acc. Is it a must?

What to look out for >

If it were me… I would propose that an independent auditor (or forensic audit, 1FY should be enough) be appointed and the findings be tabled in the next EGM (NOT AGM). If you are prevented from submitting a motion, pose the question during AGM.

Please note the procedures to submit agenda by proprietor:-
Requisition for motions to be included on agenda for general meeting
13. (1) Any proprietor may, by notice in writing deposited at the registered office of the management corporation not less than seven days before the time for holding the meeting, require inclusion of a motion as set out in such notice in the agenda of the next general meeting of the management corporation.
(2) Upon receipt of the notice under subparagraph (1), the management committee shall include the motion in the agenda of next general meeting, and the notice of the motion shall be displayed on the notice board of the management corporation.
How do I get nominated? (LOL?) >
I don’t know. Talk loud and a lot I guess.

Audited Account not included? >
Refer to section 12(3)(b) of Schedule 2 SMA

I don't see why one cannot nominate him/herself.

It's like your volunteering yourself.

just like Katniss Everdeen.

i dont think you can get confirmation here....

The Act doesn't say how internal mechanism such as these are governed... if i recall correctly, the Act however does say that the management is allowed to have their own governing rules i.e. similar to companies Article of Association in place.

I will need to go do some research on this topic...

good question though.

I suspect your condo is not using any external management service provider.

These are typical tell-tale signs that your condo is being managed by lay person who are unfamiliar with normal conventions of hosting an AGM and also Act 757.

I think is best to request your management to employ an external management service provider. At the same time, you may want to lodge a complaint with your respective COB about the discrepancies that have occurred during the tenure of the committee.

You may want to act fast because from the way you put it, there may be already signs of abuse in play. If allowed to rot, it may plunge your condo into financial difficulties…

what is there to maintain, if the "phase" have yet to be built?

my other question is, assuming developer cancel the project, what will happen to the maintenance and sinking fund for those "unbuild phases"?

the answer is, it depends.

a little bit of history, prior to Syabas Water Migration program (http://www.syabas.com.my/highlight/migration) all water from water main was channeled through the bulk water meter and subsequently distributed individually to owners unit.

As you may or may not be aware, you always pay your water bill in the maintenance office rather than directly with Syabas.

The reason being, the water passing through the bulk water meter and subsequently flowing through pipes all the way up to "your" house water meter is actually "Common Area" property that falls under the purview of the management.

Hence, the management has the right to either "disconnect" your water meter or reduce the water pressure to your unit.

Subsequently, with the introduction of Syabas Water Migration program, condominiums r required to migrate from bulk water meter to direct water meter. This would mean, owners will now sign directly with Syabas and should any issue arise, Syabas will be coming to your house to disconnect your water meter. This arrangement is much more beneficial to the condominium because the burden of paying would not be financed by owners who do pay their water bills on time.

Now to you questions...

Act 757 now enables the MC to haul defaulting owners to tribunal. If you can't produce a valid reason as to why you default on your maintenance charges, you can potentially be sanctioned under section 78(3) ACT 757.

Shouldn’t be the case anymore… If the developer still holding onto the management of the condominium especially after the coming into effect of the Strata Management Act 2013 (act 757), the owners can lodge a complaint to COB. Previously developers can get away with such practice because Building and Common Property (Maintenance and Management) Act 2007 (act 663) simply does not clearly specify the provision for transition or stipulate the penalty that can be levied.