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 Developer refuse to convene first AGM to est JMB.

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TSaurora97
post Jan 8 2016, 03:42 PM, updated 10y ago

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Got this message from my PM and I will share the issue with everyone.

Hello sir..
I read about your strata act...

And now i have a problem with XYZ Condo

We already vp for almost 2 years, and ABC Developer seems very very reluctant and unwilling to convene the first agm..

Also the mgmt is quite hectic with the management of cleanliness of common are and facility..

If you could help guiding us to the right way.. To where should i lodge a official report.

Many thanks to you sir.


Am surprised developer would want to hold on to a development for an extended period of time, normally they would want to offload it as soon as possible. Even myself as a former joint management body member, I would highly recommend any one to resign after first year in office for risk management purposes. There’s just too much thrash and at least you can say you have done your national service to the condominium.

Before you lodge a report to any authorities (this would be your COB or Commissioner of Buildings of the relevant municipality), you may want to consider writing to the developer asking for an explanation as to why they took such a long time for the transition.

Depending on their reply and whether it satisfy your query, you may want to point out to them that Strata Management Act say the following:-

17. Establishment of a joint management body
» Click to show Spoiler - click again to hide... «


AND

18. Duty of developer to convene first annual general meeting of joint management body
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Supergoola
post Jan 9 2016, 02:47 PM

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Thank you for your reply.. Really apreciated it,i understood what you said fully and currently get who is our appointed cob and will contact him soon.

The update is,
They send us a rep from developer side and now they are planning for the agm and the election of the body in febuary.

Now the following issue arises,

1. There are a huge ammount of outstanding maintenance fee, which is accumulated through out the years of service.

2. There are huge ammount of outstanding billing from TNB, SYABAS and cleaning agency.(due to the no 1 above)

for the two question above, will the the burden of settling the debt will fall under JMB, or developer will have to settle everything before handing over JMB or later MC?

...........

Comprising of 1 block of office tower, 2 block of residential (from level 6 tol 17) and retail lot at the ground to 3 level,

Will the JMB for residential include :-

A) residential only
B) residential and comercial
C) reidential, comercial and office

Becaue the rep told us that the JMB will comprises of residential and commercial,
The reason is, there are about 30 unit of commercial lot but none is occupied. Which will become a heavy burden for us.

........

If you have any MA which is good and affordale . Can pm me details.

Thank you for your tips and advice....
kochin
post Jan 11 2016, 10:48 AM

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what are the maximum allowable intervals between AGM?
strictly 365 days or are there any tolerances?
what are the implications of conducting subsequent AGM's beyond the required duration?
Penalty?
TSaurora97
post Jan 11 2016, 10:56 AM

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QUOTE(kochin @ Jan 11 2016, 10:48 AM)
what are the maximum allowable intervals between AGM?
strictly 365 days or are there any tolerances?
what are the implications of conducting subsequent AGM's beyond the required duration?
Penalty?
*
what are the maximum allowable intervals between AGM?
strictly 365 days or are there any tolerances?


section 17 SMA

(1) A joint management body shall be established upon the convening of the first annual general meeting of that joint management body—
(a) if vacant possession was delivered before the commencement of this Act, not later than twelve months from the commencement of this Act; or
(b) if vacant possession is delivered after the commencement of this Act, not later than twelve months from the date of delivery of vacant possession of a parcel to a purchaser.



what are the implications of conducting subsequent AGM's beyond the required duration?
Penalty?

section 18 SMA

(1) It shall be the duty of the developer to convene the first annual general meeting of the joint management body within the period specified in subsection 17(1).
(2) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.


kochin
post Jan 11 2016, 10:59 AM

I just hope I do!
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From: Malaysia


QUOTE(aurora97 @ Jan 11 2016, 10:56 AM)
what are the maximum allowable intervals between AGM?
strictly 365 days or are there any tolerances?
section 17 SMA

(1) A joint management body shall be established upon the convening of the first annual general meeting of that joint management body—
(a) if vacant possession was delivered before the commencement of this Act, not later than twelve months from the commencement of this Act; or
(b) if vacant possession is delivered after the commencement of this Act, not later than twelve months from the date of delivery of vacant possession of a parcel to a purchaser.

what are the implications of conducting subsequent AGM's beyond the required duration?
Penalty?

section 18 SMA

(1) It shall be the duty of the developer to convene the first annual general meeting of the joint management body within the period specified in subsection 17(1).
(2) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

*
thanks boss.
1st agm by developer done and dusted.
it's the 2nd agm after formation of jmb which i'm worried about.
the team is kinda weak and may have some hanky panky too.
just wondering how to go about it since it's more than 12 months from the 1st agm.
and any penalties may not be beneficial to the owners since it's penalising from one's own account, right?
unless it's jail term for the committee?
TSaurora97
post Jan 11 2016, 11:24 AM

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QUOTE(kochin @ Jan 11 2016, 10:59 AM)
thanks boss.
1st agm by developer done and dusted.
it's the 2nd agm after formation of jmb which i'm worried about.
the team is kinda weak and may have some hanky panky too.
just wondering how to go about it since it's more than 12 months from the 1st agm.
and any penalties may not be beneficial to the owners since it's penalising from one's own account, right?
unless it's jail term for the committee?
*
Second Schedule of SMA

Item 10 explains that “subsequent AGM” should not be more than 15 months from the last AGM.


Second Schedule of Annual general meeting
SOS:-
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Fourth Schedule of SMA

I don’t see a penalty clauses in the SMA but it appears that action may lie with the tribunal. The tribunal (as I understand) has not been set up yet, so you may have to go to COB and lodge a complaint in the meantime.


SOS:-
» Click to show Spoiler - click again to hide... «


kochin
post Jan 11 2016, 11:35 AM

I just hope I do!
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10,314 posts

Joined: Dec 2009
From: Malaysia


thanks boss for the speedy response.
TSaurora97
post Jan 11 2016, 11:46 AM

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QUOTE(Supergoola @ Jan 9 2016, 02:47 PM)
Thank you for your reply.. Really apreciated it,i understood what you said fully and currently get who is our appointed cob and will contact him soon.

The update is,
They send us a rep from developer side and now they are planning for the agm and the election of the body in febuary.

Now the following issue arises,

1. There are a huge ammount of outstanding maintenance fee, which is accumulated through out the years of service.

2. There are huge ammount of outstanding billing from TNB, SYABAS and cleaning agency.(due to the no 1 above)

for the two question above, will the the burden of settling the debt will fall under JMB, or developer will have to settle everything before handing over JMB or later MC?

...........

Comprising of 1 block of office tower, 2 block of residential (from level 6 tol 17) and retail lot at the ground to 3 level,

Will the JMB for residential include :-

A) residential only
B) residential and comercial
C) reidential, comercial and office

Becaue the rep told us that the JMB will comprises of residential and commercial,
The reason is, there are about 30 unit of commercial lot but none is occupied. Which will become a heavy burden for us.

........

If you have any MA which is good and affordale . Can pm me details.

Thank you for your tips and advice....
*
Now the following issue arises,

1. There are a huge ammount of outstanding maintenance fee, which is accumulated through out the years of service.
2. There are huge ammount of outstanding billing from TNB, SYABAS and cleaning agency.(due to the no 1 above)
for the two question above, will the the burden of settling the debt will fall under JMB, or developer will have to settle everything before handing over JMB or later MC?

In a perfect world, the developer should have apportioned the maintenance charges due by owners to offset any expenses arising. This right of apportionment is accorded to the developer per section 12(3)/(4) of the SMA. As such any shortfall is “unlikely” to happen.

Then again we live in a not so perfect world. In this regard and during the AGM, perhaps all accounts and handover of the development from developer to JMB is to be “qualified”. The interim committee will need to engage an accountant to carry out an audit as to where the leakages has occurred and whether provisions in sections 11, 12 and 14 of the SMA has been observed. From there, you will be able to determine as to why the developer has chalked up such a huge debt. Your developer is quite reputable, am kind of surprised such incident could have happened under their watch… then again I remind myself, we live in a not so perfect world.

Lol?

...........

Comprising of 1 block of office tower, 2 block of residential (from level 6 tol 17) and retail lot at the ground to 3 level,

Will the JMB for residential include :-

A) residential only
B) residential and comercial
C) reidential, comercial and office

Becaue the rep told us that the JMB will comprises of residential and commercial,
The reason is, there are about 30 unit of commercial lot but none is occupied. Which will become a heavy burden for us.

Am not very familiar with mix developments, nevertheless I reckon under the new SMA, commercial lot owners should be able to form their own subsidiary JMB in order to manage their own affairs. I would opt not to have commercial mixed with residential, simply because the division of cost will be very complex and the wear and tear to your common facilities will be extra-ordinary.

Example, say one of the commercial units is running a budget hotel and the guest in their hotel is able to gain access to your gym or swimming pool?

Also, consider the fact that expenses paid by residential and commercial lots for insurance, quit rent /assessment and tax (GST) are completely different. Residential rates are typically lower and you may end up subsidizing commercial lots doing their business.

Considering the above factors, I would insist to have our own separate JMB.



........

If you have any MA which is good and affordale . Can pm me details.

Thank you for your tips and advice....

No comments on this subject matter. We have changed 5 Mas in a span of 3 years. I guess its trial and error?

Supergoola
post Jan 11 2016, 12:19 PM

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Thank you mr aurora for your help.
there is a lot of work to do from our side later on. Sigh..

Hopefully it turns well.. It is quite sad to see everything is not in order.

Many thanks to you again.
TSaurora97
post Jan 11 2016, 12:25 PM

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QUOTE(Supergoola @ Jan 11 2016, 12:19 PM)
Thank you mr aurora for your help.
there is a lot of work to do from our side later on. Sigh..

Hopefully it turns well.. It is quite sad to see everything is not in order.

Many thanks to you again.
*
It’s good that such issues are brought up as early as possible, it may be a painful process now but in future it will bear fruits. You are really lucky that you have a developer who took so long to let go of the development, the chances of any wrong doing to arise during such an “extended” tenure is increased exponentially. Also, bring press or MP into the fold will definitely be an added edge against such a reputable developer.

Good luck and let the hunt begin!


TSaurora97
post Jan 11 2016, 12:25 PM

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Senior Member
3,788 posts

Joined: Aug 2007



QUOTE(Supergoola @ Jan 11 2016, 12:19 PM)
Thank you mr aurora for your help.
there is a lot of work to do from our side later on. Sigh..

Hopefully it turns well.. It is quite sad to see everything is not in order.

Many thanks to you again.
*
It’s good that such issues are brought up as early as possible, it may be a painful process now but in future it will bear fruits. You are really lucky that you have a developer who took so long to let go of the development, the chances of any wrong doing to arise during such an “extended” tenure is increased exponentially. Also, bring press or MP into the fold will definitely be an added edge against such a reputable developer.

Good luck and let the hunt begin!



 

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