formation of jmbs/mcs - rehda |...

Formation of

JMBs/MCs

&

Handling Over

By Chris Tan Founder and Managing Partner CHUR ASSOCIATES® Advocates & Solicitors ||| Registered Trade Mark Agent

Who are the Management Bodies

Who are the Management Bodies

a) Vacant Possession of parcels are delivered to the Strata Owners before issuance of strata titles

a) VP delivered BEFORE strata titles

Who are the Management Bodies

b) Vacant Possession of parcels are delivered to the Strata Owners after issuance of strata titles

b) VP delivered AFTER strata titles

Joint Management Body

• Established upon the convening of 1st AGM under Section 17 of the Strata Management Act 2013

Joint Management Body

a) When to convene 1st AGM of JMB

b) Process of convening 1st AGM of JMB

a) 1st

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

a) 1st

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

b) 1st

AGM of JMB - PROCESS

- Duty of Developer to hold 1st AGM of JMB

- If the book of strata register is opened before 1st AGM of JMB, the establishment of JMB shall not be required.

- The Developer may hold the 1st AGM of MC instead within the time frame as stipulated in the SMA

b) 1st

AGM of JMB - PROCESS

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

Checklist for Developer –

BEFORE 1st

AGM of JMB

• INSERT FORM 5

Form 5

Form of Proxy

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

Checklist for Developer –

BEFORE 1st

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

Checklist for Developer –

DURING 1st

AGM of JMB

To deliver/hand over all items mentioned in the prescribed Form 4 for hand over to JMB within 1 month after 1st AGM

To transfer all balances of money in the maintenance account & sinking fund account to JMB within 1 month after 1st AGM

If the Developer fails to hand over the audited account (up to fund transfer date) no later than 1 month after 1st AGM, the Developer shall hand over the audited account to JMB within 4 months after 1st AGM, the audited account shall up to date of transfer of balances in maintenance account & sinking fund account

Checklist for Developer –

AFTER 1st

AGM of JMB

• Insert Form 4

Form 4

To elect a chairman, secretary and treasurer among each other immediately after the conclusion of 1st 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 1st AGM

Checklist for JMC–

AFTER 1st

AGM of JMB

Form 5A

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 1st AGM

To inform and register with the Commissioner the name of JMB within 30 days from the date of 1st AGM

To make sure all items & docs as mentioned in Form 4 are in order and acknowledged receipt of the same

Checklist for JMC–

AFTER 1st

AGM of JMB

Management Corporation

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 1st AGM

Management Corporation

a) When to convene 1st AGM of MC

b) Process of convening 1st AGM of MC

1st

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 one-quarter (1/4) of the aggregate share units

1st

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

1st

AGM of MC - PROCESS

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

Checklist for Developer –

BEFORE 1st

AGM of MC

• Insert Form 14

Form 14

Form of Proxy

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

Checklist for Developer –

BEFORE 1st

AGM of MC

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

Checklist for JMB –

BEFORE 1st

AGM of MC

*if the earlier Management Body is the JMB*

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

Checklist for Developer/JMB –

DURING 1st

AGM of MC

To elect a chairman, secretary and treasurer among each other immediately after the conclusion of 1st 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

Checklist for MC –

AFTER 1st

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 1st 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 1st AGM

To make sure all items & docs mentioned in Form 7/Form 13 are in order and acknowledged receipt of the same

Checklist for MC –

AFTER 1st

AGM of MC

Form 15

Form 13

Form 7

To deliver/hand over all items mentioned in Form 13 to MC within 1 month after 1st AGM

To transfer the control of maintenance account & sinking fund account to MC within 1 month after 1st AGM

If the Developer fails to hand over the audited account (up to hand over) no later than 1 month after 1st AGM, the Developer shall hand over the audited account to MC within 4 months after the date of 1st AGM

Checklist for Developer –

AFTER 1st

AGM of MC

*if the earlier Management Body is the Developer*

Strata Training for Developer

Strata Handling Over Retainer

PACKAGE 1 / SINGLE

PACKAGE 2 / MULTI

PACKAGE 3 / SUB

Single Phase

Single Development

Single Use

1st Phase of

Multi Phase

Development

Single/Mix Use

Sub Phase of

Multi Phase

Development

Single/Mix Use

christan@churassociates.com