Formation of JMBs/MCs & Handling Over By Chris Tan Founder and Managing Partner CHUR ASSOCIATES
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1 Formation of JMBs/MCs & Handling Over By Chris Tan Founder and Managing Partner CHUR ASSOCIATES Advocates & Solicitors Registered Trade Mark Agent
2 Who are the Management Bodies
3 Who are the Management Bodies a) Vacant Possession of parcels are delivered to the Strata Owners before issuance of strata titles
4 a) VP delivered BEFORE strata titles
5 Who are the Management Bodies b) Vacant Possession of parcels are delivered to the Strata Owners after issuance of strata titles
6 b) VP delivered AFTER strata titles
7 Joint Management Body Established upon the convening of 1st AGM under Section 17 of the Strata Management Act 2013
8 Joint Management Body a) When to convene 1 st AGM of JMB b) Process of convening 1 st AGM of JMB
9 a) 1 st AGM of JMB WHEN? If VP of parcel was delivered before commencement of SMA, not later than 12 months from the commencement of SMA; OR If VP of parcel was delivered after commencement of SMA, not later than 12 months from the delivery of VP
10 a) 1 st AGM of JMB WHEN? on/ or before 31 May 2016 for Federal Territory of Labuan and Peninsular Malaysia (except state of Penang) and 11 June 2016 for State of Penang; or within 12 months from VP whichever is the later
11 b) 1 st AGM of JMB - PROCESS - Duty of Developer to hold 1 st AGM of JMB - If the book of strata register is opened before 1 st AGM of JMB, the establishment of JMB shall not be required. - The Developer may hold the 1 st AGM of MC instead within the time frame as stipulated in the SMA
12 b) 1 st AGM of JMB - PROCESS
13 Checklist for Developer BEFORE 1 st AGM of JMB To make sure the maintenance account and sinking fund account had been audited up to a date of not earlier than 3 months before the AGM. To identify agenda (Form 5) and proposed resolution To serve notice Form 5 to all Strata Owners To display the said notice at conspicuous part within the development area
14 INSERT FORM 5 Form of Proxy Form 5
15 Checklist for Developer BEFORE 1 st AGM of JMB To prepare an annual budget and give a copy of such budget to Strata Owners before AGM If applicable, to include the motion in the agenda and display the notice of motion on the notice board To put up a list of person who are entitled to vote during the AGM not less than 48 hours before AGM To identify the proxy lodged To prepare voting slips which to be used if a poll is demanded
16 Checklist for Developer DURING 1 st AGM of JMB To take the attendance of Strata Owners (including proxy and make sure they are the person who are entitled to vote) To make sure the candidates of JMC members are qualified to be elected To organize the meeting To answer the question which is relevant to the agenda/proposed resolution To take the minutes
17 Checklist for Developer AFTER 1 st AGM of JMB To deliver/hand over all items mentioned in the prescribed Form 4 for hand over to JMB within 1 month after 1 st AGM To transfer all balances of money in the maintenance account & sinking fund account to JMB within 1 month after 1 st AGM If the Developer fails to hand over the audited account (up to fund transfer date) no later than 1 month after 1 st AGM, the Developer shall hand over the audited account to JMB within 4 months after 1 st AGM, the audited account shall up to date of transfer of balances in maintenance account & sinking fund account
18 Insert Form 4 Form 4
19 Checklist for JMC AFTER 1 st AGM of JMB To elect a chairman, secretary and treasurer among each other immediately after the conclusion of 1 st AGM To open maintenance account and sinking fund account To issue minutes and a notice in prescribed Form 5A to all Strata Owners notifying the amount of Charges Contribution to Sinking Fund and the rate of late payment interest within 28 days from the date of 1 st AGM
20 Form 5A
21 Checklist for JMC AFTER 1 st AGM of JMB To display the Form 5A & minutes on the notice board To file with Commissioner certified true copies of the audited accounts, auditor s report, resolutions passed and minutes of AGM within 28 days from the date of 1 st AGM To inform and register with the Commissioner the name of JMB within 30 days from the date of 1 st AGM To make sure all items & docs as mentioned in Form 4 are in order and acknowledged receipt of the same
22 Management Corporation
23 Management Corporation Established upon the opening of book of strata register under Section 17 of Strata Titles Act 1985 Section 14 of STA, Director of Lands and Mines shall direct the Registrar to open a book of the strata register upon receiving certified strata plan from Director of survey Commence operation upon convening of 1 st AGM
24 Management Corporation a) When to convene 1 st AGM of MC b) Process of convening 1 st AGM of MC
25 1 st AGM of MC WHEN? Within 1 month from the date of which there are the Proprietors (excluding the original proprietor) the sum of whose share units is at least onequarter (1/4) of the aggregate share units
26 1 st AGM of MC - PROCESS - The time frame to hold AGM depends on the strata titles registration from the original proprietor to the Strata Owners - Hence, the Developer shall always track the status of strata titles registration
27 1 st AGM of MC - PROCESS
28 Checklist for Developer BEFORE 1 st AGM of MC To make sure the maintenance account and sinking fund account had been audited up to a date of not earlier than 3 months before the AGM To identify agenda and proposed resolution To serve notice Form 14 to all Strata Owners To display the said notice at conspicuous part within the development area
29 Insert Form 14 Form of Proxy Form 14
30 Checklist for Developer BEFORE 1 st AGM of MC To prepare an annual budget and give a copy of such budget to Strata Owners before AGM If applicable, to include the motion in the agenda and display the notice of motion on the notice board To put up a list of person who are entitled to vote during the AGM not less than 48 hours before AGM To identify the proxy lodged To prepare voting slips which to be used if a poll is demanded
31 Checklist for JMB BEFORE 1 st AGM of MC *if the earlier Management Body is the JMB* To appoint an auditor to audit the maintenance accounts and sinking fund accounts and these accounts are audited up to a date of not earlier than 3 months before the AGM To make sure the accounts had been audited annually To furnish information to the Developer for preparing annual budget, proxy listing and list of person who are entitled to vote
32 Checklist for Developer/JMB DURING 1 st AGM of MC To take the attendance of Strata Owners includes proxy and make sure they are the person who are entitled to vote To make sure the candidates of Committee members are qualified to be elected To organize the meeting To answer the question which is relevant to the agenda/proposed resolution To take the minutes
33 Checklist for MC AFTER 1 st AGM of MC To elect a chairman, secretary and treasurer among each other immediately after the conclusion of 1 st AGM If the earlier Management Body is JMB, to open new maintenance account and sinking fund account If the earlier Management Body is the Developer, to take over the control of maintenance account and sinking fund account
34 Checklist for MC AFTER 1 st AGM of MC To issue a notice in Form 15 to all Strata Owners notifying the amount of Charges, Contribution to Sinking Fund and the rate of late payment interest within 28 days from 1 st AGM To display the Form 15 on the notice board To file with Commissioner certified true copies of the audited accounts, auditor s report, resolutions passed and minutes of AGM within 28 days from 1 st AGM To make sure all items & docs mentioned in Form 7/Form 13 are in order and acknowledged receipt of the same
35 Form 15 Form 7 Form 13
36 Checklist for Developer AFTER 1 st AGM of MC *if the earlier Management Body is the Developer* To deliver/hand over all items mentioned in Form 13 to MC within 1 month after 1 st AGM To transfer the control of maintenance account & sinking fund account to MC within 1 month after 1 st AGM If the Developer fails to hand over the audited account (up to hand over) no later than 1 month after 1 st AGM, the Developer shall hand over the audited account to MC within 4 months after the date of 1 st AGM
37 Strata Training for Developer
38 Strata Handling Over Retainer PACKAGE 1 / SINGLE PACKAGE 2 / MULTI PACKAGE 3 / SUB Single Phase Single Development Single Use 1 st Phase of Multi Phase Development Single/Mix Use Sub Phase of Multi Phase Development Single/Mix Use
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