Other exciting developments:

Housing Development (Control and Licensing) (Amendment) Regulations 2015 will come into operation on 1 July 2015.

1. New Regulation 8(1A):
Any advertisement made by any licensed housing developer shall not contain:
(a) offer of free legal fees < no more free legal fees
(b) projected monetary return gains and rental income
© claim of panoramic view
(d) travelling time from housing projects to popular destinations; or
(e) any particulars to which a housing developer cannot genuinely lay proper claim.

2. changes to SPA
Substitution of Schedules G, H, I and J - still looking at it donno what are the changes yet...

Cherroy more interesting stuff to come:-

Might want to expand your listing.

- MC can now establish subsidiaries to manage to cater to facilities used by "limited" amount of people.
- a person may act as proxy for only one proprietor at any one general meeting
- no Chairman, Secretary or Treasurer may hold office for more than 2 consecutive years
- no committee member may hold office for more than 3 consecutive terms

Rules are like wood, you can keep hitting you head until bleed also it won't change.

Humans are like water, if got rock, it will just go around it.

Anyway, please treat me like wood for now.

I assume this doesn't concern landed property and how this affect recently launch high rise property?

Definitely doesn’t concern landed property because of the words “strata”, it concerns stratified property…example condominium. Just check your title if you want to be absolutely certain.

How does it affect recently launch high rise property…?

Good question, if you have participated in a JMB or MC as a management committee, you will know that act 663 and COB are just toothless tigers. This resulted in a lot of disputes ranging from un-recovered outstanding maintenance fees, phantom voters during JMB or MC meetings and also abuse by JMB or MC members who run the management like their own business.

From what I have picking up so far, a lot of issues in relation to internal aspects of the management has been overhauled, also I see there is a tribunal (possibly JMB/MC, owner or both can bring an action against each other), ability to form “Subsidiary” Management Company, how meetings are held and votes are cast etc…

yup I just checked... two storey or more also can qualify under the strata title act

-deleted-

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

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

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

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.

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

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.

Sounds HDAish...

Anyway I will try and hunt it down.

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

Found something but I don't know whether KPKT is using the latest SPA with the update amendments but from the looks of it... it does come from HDA/SPA and possibily Strata Title Act... need to keep digging.

SPA Schedule H

the Developer may apply to the Controller for a certification in writing to deliver

1. Quote the section is act 663, maybe i can find the equivalent.

2. What is conflict of interest to you?

3. To answer no.2 question, u may have your owners right over unit. Your ignoring the fact that common areas fall under the care of the management. My next question would be how is it unreasonably implemented?

Let me get myself straight here, am not a lawyer. I am a former jmb member, i am doing this out of interest and to expand my knowledge. If you feel that this matter is potentially litigations, you should seek professional advice.

Now am not judging you but from the way your responding, you throwing everything including the kitchen sink trying to defeat the management.

If in doubt...
If your Condo is currently managed by the developer than you should refer to the deed of mutual covenant.
If your Condo is now under the purview of a jmc or mc, you should refer to the by law.

Now if the amendment does not have provision in the by law to allow what it does now, then you may raise a query such action may not be allowed.

Likely then not your management will in the next meeting have it included in the by law. This is a common mistake.

Now to amend the by law is by no means an easy feat, you will require a special resolution to have it passed during an Agm or Egm.

I will quote the provisions later... Meanwhile break for dinner!

I can't take a partisan view on this issue.

I will advise you based on the facts you have presented and what I can sight in the Act 757 itself (which supersede Act 663).

Other than that, u will need to do your own research and fight your own battles.

I will write more when i get to office.

This post has been edited by aurora97: Jun 29 2015, 09:23 AM

some basics:-

before the land is sub-divided, it is under a master title.

once sub-division occurs (meaning the master title is carved up into small parcels of land/unit), you will receive your strata title.

Now, you can sell your land at any time. Even when the condo is under-construction.

So presumably the buyer wants to buy the condo but land yet to be sub-divided. In this case, in order to secure the financing given, the bank will want the borrower to execute a "Deed of Assignment" in the interim pending issuance of strata title.

I respect your request to keep it private.

Nevertheless, I prefer issues to be addressed in forum.

This is to solicit other responses from various participants who are more knowledgeable compared to myself. Also, your issue is pretty common, in fact it even happened in my condominium. Unfortunately, we didn’t manage to put our chairman in jail that’s all, he managed to “ular” his way out.

Defamation can only happen, when you are start naming names, places and particulars that are “identifiable”, nothing precludes you from creating a hypothetical situation that ironically bear similar resemblance to what you r currently encountering. We just have to be creative in coming up with the story.

As for joining chat groups, whether its 24/7 or just ad hoc, I am involved in too many groups. If you have any questions, you can pose it in this forum instead. You will get almost instantaneous response from me or even better some other forumers can also participate and give you advice.

***

Now let me re-focus everyone to the following scenario, my situation as follows:-


***

1. Pre-amble:-
1.1 Please read this section before reading the body:-
1.1.1 you will need to read up the relevant section of the SMA before you engage further in this discussion.
1.1.2 consider how far you are willing to go, there’s no turning back once you commit. Remember you are not only fighting for the community but for your home as well. There will be A LOT of trips to the COB and police station, in worst case scenario you may need to employ a solicitor. It will take up your time and money.

1.2 Special note;-
1.2.1 Notwithstanding the words “Management Corporation” appearing in Schedule 2 of the SMA, section 22(2) of the SMA states that it applies to JMB as well.

2. Plan of attack:-

2.2 1st phase (“Readiness”)
2.2.1 things you will need to consider before you go into a battle:-
(a) is AGM just around the corner?
- if yes, forgo EGM. Too much hassle to get the 25%. There’s a lot of practical reasons why is say don’t go on this route. Example, he will say that each and every person in your petition is a fraud then you need to verify etc…
- unless you manage to persuade the Commission to force JMB under section 11(4) of Schedule 2.

(b) what’s your agenda?
- this will become motions in your EGM/AGM.

© what’s your plan of action to each of the agenda?
- each agenda must have an action.
Example:-
(i) if accounting is suspected to be irregular, commence an audit or if you have more money do forensic accounting (approx. 50K-100K per financial year, yes I know this from experience).
(ii) if management company is unsatisfactory, sack.
(iii) sack existing JMB committee, re-appoint new JMB committee.

Etc…

© do you have an interim committee?
- unless you don’t mind existing committee continue running the show. You better have someone in mind.

2.3 2nd phase (“Information is key”)
2.3.1 in order to build a case, you need to understand the following:-

2.3.1.1 Know your rights, what can you request from the JMB:-
(a) section 31 SMA

2.3.1.2 Financial Accounts
(a)duties and powers of a JMB (section 21(1) SMA)
(b) jmb body to establish maintenance account (s,23(1) SMA)
© Jmb body to establish sinking fund (s.24(1)SMA)
Note: Most common mistake of jmb (especially the naughty ones), they always pillage either item (b) or ©. Most likely ©.It’s a very serious offence as well (see s. 26(5) SMA)
(b) if they pillage the sinking fund, very likely they can’t comply with s.25 to 26 of the SMA.

2.3.1.2 By laws
(a) section 32 SMA
- amend and additional require special resolution (see section 32(3))
(b) section 32(5) SMA
- you can request a copy of the by law.
Note: by laws are like the constitution of a management body, it gives wide powers to the management to do a lot of things. However, most JMB’s I think do not realize that whatever they do (charge extra fees, implementing security requirements etc…) is required to document it in by laws and file with COB. This is also a point you can bang on.

2.3.1.3 Conflict of Interest
- I do not see any provisions.

2.3.1.4 Minutes of Meeting
- request for it to be published on notice board s7 of Schedule 2 SMA.
- if you can try and request COB to exercise their rights under s.7(11) of Schedule 2 SMA. Force the JMB to give up all it accounting and records, thereafter request a copy from COB to prepare your case.

2.3.1.5 Appointments.
You will all note I did not touch on appointment or people voted into office. It’s already in the past and it’s difficult to challenge their appointment because of s.8 of schedule2.

2.3.1.6 procedures for AGM/EGM
See 10 to23 of Schedule 2.
- this is where your Agenda will come into play.
- you must also prepare yourselves to convene a meeting.
- you may also be required to ensure that there are no phantom voters.

2.4 3rd phase (mobilization)
- once you have collated all the necessary information.
- you can choose the routes of attack:-
(a) AGM/EGM – very open and bloody.
(b) Court – very expensive.
© Tribunal – fresh from the oven
- for transparency sake and also to get the community involved, take option (a) followed by © and lastly if all things fail (b).

This post has been edited by aurora97: Jun 29 2015, 12:03 PM

Most of the time, all this issue arise because of owners indifference towards their own property.

When I bought my property, 1 year after that there was talks of misappropriation of monies, mismanagement and cronyism etc… This only happen because ignorance of Act 663 (now superseded by Act 757) and no participation of owners during AGM/EGM or such other events held by the condominium.

The indifference is an opportunity for abuse, this allow the management to do whatever it pleases and by the time the wrong doing is discovered, the damage is done (example sinking fund depleted etc…)

As for whatever that is brought up by whoever, I sincerely believe have been done so in good faith and I won’t look into the ulterior motives of the party.

It’s no use crying over spilt milk now, best to address the issue at hand and pay an expensive lesson at that.