1. How is the Body Established?

a) It is established by Developers duty to hold the first Annual General Meeting

(AGM) of the Body upon giving vacant possession before or after the
commence of the Act. (S. 17 of Strata Management Act 2013)
-

The Body consists of the Developer and the purchasers.

It is also considered as a body corporate having perpetual succession and

a common seal.

It may sue and be sued in its name.

b) Developer must give written notice of not less than fourteen (14) days before
the meeting to all purchasers, displayed at a conspicuous part of the
development area. (s. 18 of SMA 2013)
1.1 What does the Developer hand over to the Body after its
establishment?
s. 15 of SMA 2013
(1) A developer shall, before the developers management period expires
(a) transfer all balances of moneys in the maintenance account and the
sinking fund account, after payment of all the expenditure which have
been properly charged to the accounts, to the joint management body;
(b) hand over to the joint management body
(i) the administration office set up by the developer under paragraph 9(4)(a);
(ii) the audited accounts of the maintenance account and the sinking fund account
or, if such accounts have not been audited, the unaudited accounts;
(iii) all the assets of the development area;
(iv) all records relating to and necessary for the maintenance and management of
the buildings or lands intended for subdivision into parcels and the common
property of the development area; and
(v) all invoices, receipts and payment vouchers in respect of the maintenance
account and sinking fund account.
1.2. What are the Duties and Powers of the Body?
s. 21 of SMA 2013 Duties and Powers
(1) The duties of a joint management body shall be as follows:

(a) to properly maintain and manage the building or land intended for
subdivision into parcels and the common property, and keep it in a state of good
and serviceable repair;
(b) to determine and impose the charges to be deposited into the maintenance
account for the purpose of the proper maintenance and management of the
buildings or lands intended for subdivision into parcels and the common property;
(c) to determine and impose the contribution to the sinking fund to be
deposited into the sinking fund account for the purpose of meeting the actual or
expected expenditure specified under subsection 24(2);
(d) to effect insurance according to this Act or to insure against such other risks
as the parcel owners may by special resolution direct;
(e) to comply with any notice or order given or made by the local authority
or any competent public authority requiring the abatement of any nuisance on
the common property, or ordering repairs or other work to be done in respect of the
common property or other improvements to the common property;
(f) to prepare and maintain a register of all parcel owners of the buildings or
lands intended for subdivision into parcels;
(g) to ensure that the accounts required to be maintained by the joint
management body under this Act are audited and to provide audited financial
statements for the information to its members;
(h) to enforce the by-laws; and
(i) to do such other things as may be expedient or necessary for the proper
maintenance and management of the buildings or lands intended for subdivision
into parcels and the common property.
(2) The powers of the joint management body shall be as follows:
(a) to collect the charges from the parcel owners in proportion to the allocated
share units of their respective parcels;
(b) to collect the contribution to the sinking fund from the parcel owners;
(c) to authorize expenditure for the carrying out of the maintenance and
management of the buildings or lands intended for subdivision into parcels and the
common property;
(d) to recover from any parcel owner any sum expended by the joint
management body in respect of that parcel in complying with any such notice
or order as referred to in paragraph (1)(e);

(e) to purchase, hire or otherwise acquire movable property for use by the
parcel owners in connection with their enjoyment of the common property;
(f) to employ or arrange and secure the services of any person or agent to
undertake the maintenance and management of the common property of the
building or lands intended for subdivision into parcels;
(g) subject to subsection 32(3), to make additional by-laws for the proper
maintenance and management of the buildings or lands intended for subdivision
into parcels and the common property; and
(h) to do all things reasonably necessary for the performance of its duties under
this Act and for the enforcement of the by-laws.
s. 32 of SMA 2013 Power to create by-laws
a) Joint management body may, by a special resolution, make additional
by-laws or make amendments to such additional by-laws, not
inconsistent with the by-laws prescribed by regulations made under section
150, 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:
- safety and security measures;
- details of any common property of which the use is restricted;
- the keeping of pets;
- parking;
- floor coverings;
- refuse control;
- behavior;
- architectural and landscaping guidelines to be observed by all parcel
owners; and
- imposition of fine not exceeding two hundred ringgit against any
parcel owner, occupant or invitee who is in breach of any of the bylaws.
2. How is the Committee Established?
a) One of the purpose of the AGM of the Body is to establish the Committee,
determine the numbers of the member of the Committee and elect the
members of the Committee. (s. 19 SMA 2013)

The Committee shall include the Developer as a member.

2.1 Who are the members of the Committee?

a) The members shall consists between 3 to 14 natural persons (Para 2(1) of 2 nd
Schedule of SMA 2013)
b) The members are elected at every AGM (Para 2(4) of 2 nd Schedule)
c) Chairman, secretary and treasurers must be natural persons (Para 2(5) of 2 nd
Schedule)
d) All members has to retire every AGM and can only be re-elected for 3
consecutive terms (Para 2(6))
2.2 How are the members of the Committee to be decided?
Para 17 of 2nd Schedule of SMA 2013
a) By all the proprietors who are entitled to vote and present at the general meeting
through a show of hand unless a polls has been demanded.

2.3 Requirements to be a member of the Committee.

Para 2(7) of 2nd Schedule
-

21 years old and above;

Proprietor/Co-proprietor

Nominees (Representatives) selected by company, society,

staturtory body or other bodies

Nominees who are immediate family members of the proprietor

2.4 Nominees
Para 2(10) of 2nd Schedule
-

Nominees for proprietors owning 2 or more parcels cannot be

elected if
a) Both proprietor and his nominees are nominated or elected in the same
or other elections

b) Total nominees that cause to exceed the threshold number

below:
1. Nominees cannot exceed the total number of members
which is proportional to proprietors share units (ignore
fraction)
2. Nominees cannot exceed forty-nine percent (49%) of the
management committee members (ignore fraction)

*Confirmation from En. Azmi, Legal Officer for Commissioner for

Buildings of DBKL.
-

The above subsubparagrah (b) is to prevent proprietors

with majority share units to hold absolute majority votes
when deciding matters in general meetings.

Simply, total nominees for a proprietor cannot be more

than half of the total number of Committee members (to
prevent majority voting by show of hands); and

their votes corresponding to their share units cannot

exceed the total share units of the other members (to
prevent majority voting by poll).

2.5 Proprietors representative (Para 23 of 2nd Schedule)

A proprietor who is not a natural person may be represented in any meeting as
follows:
(a) if the proprietor is a company, by its representative duly authorized
under its seal or the hand of its director, or by any duly authorized
attorney or by its appointed proxy;
(b) if the proprietor is a company where a receiver or a receiver and manager is
appointed, by the receiver or the receiver and manager or a person duly authorized
by the receiver or the receiver and manager or by its appointed proxy;
(c) if the proprietor is a company which is under liquidation, by the liquidator or any
person duly authorized by the liquidator or by its appointed proxy;
(d) if the proprietor is a society, by any one of its office bearers or any person duly
authorized by the society or by its appointed proxy; or

(e) if the proprietor is a statutory body or any other body, by one of its members or
such other duly authorized person or by its appointed proxy.

2.6 Proxy (para 18 of 2nd Schedule)

- Proxies are appointed by using an instrument in writing and to be deposited to the
registered office at least 48 hours before any meeting.
- Only one proxy can be appointed for one proprietor
- Proxies may demand or join to demand a poll
- Proxies may vote as a proxy or in his own right but cannot vote if they exercise
personally the power to vote.

2.7 What are the Powers and duties of the Committee?

They are the same as for the Body but subject to restrictions and conditions by the
Body. (s. 22 of SMA 2013)

3. General Meetings
3.1 Agendas of the First Annual General Meeting
a) The agenda for the first annual general meeting of the joint
management body shall include the following matters (s. 19 of SMA 2013):
(a) to determine the number of members of the joint management
committee and to elect the members of the joint management
committee;
(b) to consider the annual budget prepared by the developer under
subsection 18(4);
(c) subject to subsections 25(2) and (3), to determine the amount to be paid
by a parcel owner as the charges, and contribution to the sinking fund;
(d) 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;
(e) to consider the audited accounts specified in subparagraph 14(1)(b)(ii);

(f) to confirm the taking over by the joint management body of insurances
effected by the developer under this Act;
(g) to make additional by-laws; and
(h) 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.
(2) if within half an hour after the time appointed for the meeting no
purchaser entitled to vote turns up or all the purchasers present, for any
reason, refuse to be members of the joint management committee, the
developer or the person appointed by the commissioner to convene the
meeting shall, within seven days of the date of the meeting inform the
commissioner of the fact and the commissioner may
(a) appoint a new date for the election of the joint management committee;
or
(b) appoint a managing agent under Part Vi to maintain or manage the
buildings or lands intended for subdivision into parcels and the common
property comprised in the development area.

3.1.1 Quorum of General Meetings

- At any general meeting, if half of the proprietors are present, it shall
constitute a quorum
- If after half an hour of the general meeting a quorum is not present, the
proprietors that are present and entitled to vote shall constitute a
quorum.

3.2 Types of General Meetings

3.2.1 Annual General Meeting (AGM)
Para 10 of 2nd Schedule of SMA 2013
-

Held once each year

The gap between two AGMs shall not be more than 15 months.

3.2.2 Extraordinary General Meeting (EGM)

Para 11 of 2nd Schedule of SMA 2013

EGMs can be convened by the following:

a) upon a requisition in writing made by the proprietors who are

together entitled to at least one-quarter of the aggregate share
units;
b) upon receiving a direction in writing from the Commissioner for the
transaction of such business as the Commissioner may direct; and
c) on such other occasion as it thinks fit.
-

EGMs are to be held as soon as practicable but in any case, not less than
six weeks after the requisition and direction in the above (a) and (b).

3.3 Procedures of General Meetings

The Body shall give 14 days notice to all proprietors (Para 12(1) of 2nd
Schedule)
-

Date, time, place of the meeting

Proposed resolution to consider at the meeting

Notification to proprietors of his voting rights and that he may vote in

person or by proxy.

Enclose minutes of previous general meeting

Enclose audited accounts and auditors report on the accounts of the Body

Specify any other matters to be considered.

a) A proprietor may requisition a motion by giving seven (7) days notice of the
motion before any general meeting which is to be deposited at the
Registration office. (para 13 of 2nd Schedule)
b) The Committee shall put a list of names of the persons entitled to vote on the
notice board at least 48 hours before the general meeting. (Para 14 of 2 nd
Schedule)
c) A chairman shall be elected by the proprietors present and who are entitled
to vote, and the chairman shall preside over such meeting. (Para 16 of 2 nd
Schedule)

4. Manner of deciding matters in the General Meeting

4.1 By show of hands (Para 17, 21, 22 of 2nd Schedule)

-

Only one vote per hand, unless a poll is demanded by a proprietor or a

proxy.

*Nominees are subject to the limitation as mentioned above on the

number.

4.2 By poll (Para 17, 21, 22 of 2nd Schedule)

-

Votes correspond to the share units or provisional share units that the
proprietors own.

*Nominees are subject to the limitation as mentioned above on

the corresponding votes.

4.3 In the event there are equal votes (Para 21, 22 of 2nd Schedule of SMA
2013)
-

The chairman shall have a casting vote.