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  • Comments Off on Developer, JMB and Strata Management
  • Comments

Developer, JMB and Strata Management

Joint management body – by Developer

A joint management body shall be established upon the convening of the first annual general meeting of that joint management body, not later than twelve months from the date of delivery of vacant possession of a parcel to a purchaser.

The joint management body established shall be a body corporate having perpetual succession and a common seal. The joint management body shall comprise the developer and the purchasers.

If the management corporation comes into existence before the first annual general meeting of the joint management body, the first annual general meeting shall not be required to be convened and no joint management body shall be established for that development area.

Charges (maintenance fee) and sinking fund upon vacant possession

Each purchaser shall pay the Charges, and contribution to the sinking fund, in respect of his parcel to the developer for the maintenance and management of the buildings or lands intended for subdivision into parcels and the common property in a development area.

The developer shall pay the Charges, and contribution to the sinking fund, in respect of those parcels in the development area which have not been sold, being a sum equivalent to the Charges, and contribution to the sinking fund, payable by the purchasers to the developer had the parcels been sold.

The amount of the Charges to be paid shall be determined by the developer in proportion to the allocated share units of each parcel.

The amount of contribution to the sinking fund to be paid shall be a sum equivalent to ten per cent of the Charges.

Any purchaser who is not satisfied with the sums determined by the developer may apply to the Commissioner for a review and the Commissioner may determine the sum to be paid as the Charges, or contribution to the sinking fund; or instruct the developer to appoint, at the developer’s own cost and expense, a registered property manager to recommend the sum payable as the Charges, or contribution to the sinking fund, and submit a copy of the registered property manager’s report to the Commissioner.

Upon receiving the report, the Commissioner shall determine the sum payable as he thinks just and reasonable, and any sum so determined by the Commissioner shall be deemed to be the sum payable as the Charges, or contribution to the sinking fund.

Annual general meeting

The management corporation shall hold an annual general meeting for the consideration of accounts, election of the management committee and the transaction of such other matters as may arise.

The first annual general meeting shall be held within one month after the expiry of the initial period and the subsequent annual general meetings shall be held once in each year, provided that not more than fifteen months shall lapse between the date of one annual general meeting and the next.

The holding of any annual general meeting out of time in breach of this paragraph shall not affect the validity of the annual general meeting.

Extraordinary general meetings

A general meeting of the management corporation other than the annual general meeting shall be known as the extraordinary general meeting.

The management committee—
o shall convene an extraordinary general meeting upon receiving a direction in writing from the Commissioner for the transaction of such business as the Commissioner may direct; and
o shall convene an extraordinary general meeting upon a requisition in writing made by the proprietors who are together entitled to at least one-quarter of the aggregate share units
o may convene an extraordinary general meeting on such other occasion as it thinks fit.

Joint Management Body

The agenda for the first annual general meeting of the joint management body shall include the following matters:
• to determine the number of members of the joint management committee and to elect the members of the joint management committee;
• to consider the annual budget prepared by the developer;
• to determine the amount to be paid by a parcel owner as the Charges, and contribution to the sinking fund;
• to determine the rate of interest payable by a parcel owner in respect of any late payment of the Charges, or contribution to the sinking fund, by the parcel owner;
• to consider the audited accounts;
• to confirm the taking over by the joint management body of insurances effected by the developer;
• to make additional by-laws; and
• to consider any other matter connected with the maintenance and management of the common property of the building or land intended for subdivision into parcels.

Management Corporation

The agenda for the first annual general meeting of a management corporation shall include the following matters:

• to determine the number of members of the management committee and to elect the management committee where there are more than three proprietors;
• to consider the budget prepared by the developer
• to decide whether to confirm or vary any amount determined as the Charges, or contribution to the sinking fund;
• to determine the rate of interest payable by a proprietor in respect of late payment charges;
• to consider the audited accounts of the management corporation
• to decide whether to confirm, vary or extend the insurances effected by the developer for the management corporation
• to make additional by-laws; and
• to consider any matter connected with the maintenance and management of the common property of the subdivided buildings or lands.

Maintenance account

Joint Management Body

A joint management body shall open and maintain a maintenance account with a bank or financial institution

The maintenance account shall be administered and controlled by the joint management body and shall consist of:
• all balances of moneys in the maintenance account transferred by the developer to the joint management body
• all or any part of the Charges imposed by or payable to the joint management body
• all moneys derived from the lease, rent or use of any property which may be lawfully charged by the joint management body;
• all other moneys and property which may in any manner become payable to or vested in the joint management body in respect of any matter incidental to its functions and powers; and
• all other moneys lawfully received by the joint management body, including interest, donation and trust.

The maintenance account shall be used solely for the purpose of meeting the actual or expected general or regular expenditure necessary in respect of the following matters:

• maintaining the common property in good condition on a day-to-day basis;
• paying for the expenses incurred in providing cleaning services for the common property, security services and amenities for the occupiers of the building;
• paying any premiums for the insurance or any other insurance approved by a special resolution in a general meeting;
• complying with any notice or order given or made by the local authority in respect of periodical inspection of any building in the development area in the manner as specified in the Street, Drainage and Building Act 1974;
• minor painting works on the premises of the common property;
• carrying out inspection of all electrical wiring systems of the common property and replacing or repairing any faulty wiring systems, if any;
• carrying out inspection, maintenance and repair of the main water tanks;
• paying rent and rates, if any;
• paying any fee incurred for the auditing of the accounts required to be maintained by the joint management body;
• paying all charges reasonably incurred for the administration of the accounts required to be maintained by the joint management body as may be determined by the Commissioner;
• paying the remuneration or fees for the managing agent appointed;
• paying for the allowances and other expenses of the members of the joint management body and members of the joint management committee according to such rates as may be approved by the Commissioner;
• paying any expenses, costs or expenditure in relation to the procurement of services, including the engagement of consultants, legal fees or costs and other fees and costs, properly incurred or accepted by the joint management body in the performance of its functions and the exercise of its power; or
• meeting other expenses of a general or regular nature relating to the maintenance and management of the building or land intended for subdivision into parcels and the common property.

Management Corporation

If the maintenance account in the name of the management corporation had not been earlier established, the management corporation shall open and maintain a maintenance account in the name of the management corporation, with a bank or financial institution.

For the purpose of establishing and maintaining the maintenance account, the management corporation may at a general meeting—

• determine from time to time the amount to be raised
• raise the amounts so determined by imposing Charges on the proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks, and the management corporation may determine different rates of Charges to be paid in respect of parcels which are used for significantly different purposes and in respect of the provisional blocks; and
• determine the amount of interest payable by a proprietor in respect of late payments which shall not exceed the rate of ten per cent per annum.

Sinking fund account

Joint Management Body

A joint management body shall open and maintain a sinking fund account with a bank or financial institution, into which shall be deposited all balances of moneys in the sinking fund account transferred by the developer to the joint management body, and all contributions to the sinking fund paid by the parcel owners to the joint management body.

The sinking fund account shall be used solely for the purposes of meeting the actual or expected capital expenditure in respect of the following matters:

• the painting or repainting of any part of the common property;
• the acquisition of any movable property for use in relation to the common property;
• the renewal or replacement of any fixture or fitting comprised in any common property;
• the upgrading and refurbishment of the common property; or
• any other capital expenditure as the joint management body deems necessary.

Any contribution to the sinking fund imposed in respect of a provisional block shall be due and payable on the passing of a resolution to that effect by the joint management corporation and in accordance with the terms of that resolution

Joint management body hand over to Management Corporation

A joint management body shall dissolve three months from the date of the first annual general meeting of the management corporation for the development area.

The joint management body shall, not more than one month from the date of the first annual general meeting of the management corporation, transfer all balances of moneys in the maintenance account and in the sinking fund account, after payment of all the expenditure which have been properly charged to the accounts, to the management corporation and hand over to the management corporation—

 the audited accounts of the maintenance account and the sinking fund account or, if
such accounts have not been audited, the unaudited accounts;
 all the assets and liabilities of the joint management body;
 all the documents delivered by the developer to the joint management body
 all records relating to and necessary for the maintenance and management of the
building or land intended for subdivision into parcels and the common property.
 any additional by-laws;

Additional by-laws

A developer during the developer’s management period may make additional by- laws or make amendments to such additional by-laws with the approval of the Commissioner.

A joint management body may, by a special resolution, make additional by-laws or make amendments to such additional by-laws, for regulating the control, management, administration, use and enjoyment of the building or land intended for subdivision into parcels and the common property, including all or any of the following matters:

o safety and security measures;
o details of any common property of which the use is restricted;
o the keeping of pets;
o parking;
o floor coverings;
o refuse control;
o behaviour;
o architectural and landscaping guidelines to be observed by all parcel owners; a
o imposition of fine not exceeding two hundred ringgit against any parcel owner, occupant or invitee who is in breach of any of the by -laws.

The additional by-laws made shall bind the developer or the joint management body, as the case may be, and the parcel owners, and any chargee or assignee, lessee, tenant or occupier of a parcel to the same extent as if the additional by-laws—

o had been signed or sealed by the developer or the joint management body, as the case may be, and each parcel owner and each such chargee or assignee, lessee, tenant or occupier, respectively; and
o contain mutual covenants to observe, comply and perform all the provisions of those additional by-laws.

A management corporation may, by special resolution, make additional by-laws or make amendments to such additional by-laws, for regulating the control, management, administration, use and enjoyment of the subdivided building or land and the common property, including all or any of the following matters:

• safety and security measures;
• details of any common property of which the use is restricted;
• the keeping of pets;
• parking;
• floor coverings;
• refuse control;
• behaviour;
• architectural and landscaping guidelines to be observed by all proprietors; and
• imposition of fine not exceeding two hundred ringgit against any proprietor, occupant or invitee who is in breach of any of the by-laws.

The additional by-laws made shall bind the management corporation and the proprietors, and any chargee, lessee, tenant or occupier of a parcel to the same extent as if the additional by –laws had been signed or sealed by the management corporation, and each proprietor and each such chargee, lessee, tenant or occupier, respectively contained mutual covenants to observe, comply and perform all the provisions of these additional by-laws.

Management Corporation

If the sinking fund account in the name of the management corporation had not been earlier established, the management corporation shall open and maintain a sinking fund account with a bank or financial institution, into which shall be deposited the contribution to the sinking fund paid by the proprietors.

For the purpose of establishing and maintaining the sinking fund account, the amount to be paid by the proprietors of the parcels or provisional blocks shall be a sum equivalent to ten per cent of the Charges imposed, unless otherwise determined from time to time at a general meeting of the management corporation, but such contribution to the sinking fund shall not be less than ten per cent of the Charges.

Any contribution to the sinking fund imposed in respect of a provisional block shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution.

Voting rights of proprietor

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.

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.

Voting rights of co-proprietors

Co-proprietors may vote by means of a jointly appointed proxy or by appointing anyone of them or any other person.

In the absence of a proxy, co-proprietors shall not be entitled to vote on a show of hands, except where unanimous resolution is required, provided that any one co-proprietor may demand a poll.

On a poll, each co-proprietor shall be entitled to such number of the votes attaching to his parcel or provisional block as is proportionate to his interest in the parcel or provisional block.

Developer, JMB and Strata Management