Strata

Management
Seminar: Sales
and Marketing
Consideration
(Part 2-Day 2)
Chris Tan Chur Pim
Managing Partner
CHUR ASSOCIATES®
advocates & solicitors ||| registered trade mark agent
Part 2 Day 1 Part 2 Day 2

Module 6: Module 8:
Prescribed by Laws and Meetings of Management Bodies
Additional By-Laws

Module 7: Module 9:
Issues and Challenges of Common Strata Disputes
Management Bodies in Strata
Management

2 Days Module (Part 2)

Part 2 Day 2
TIME AGENDA
9.00am​ - 10.30am Module 8: Meetings of Management Bodies
i. Annual General Meeting (AGM)
ii. Extraordinary General Meeting (EGM)
iii. Meeting proceedings of a committee

10.30am - 11.00am​ Morning Refreshments

11.00am - 12.30pm​ ​Module 8: Meetings of Management Bodies (Continued)

12.30pm​ - 1.30pm Networking Lunch

1.30pm ​- 3.00pm​ Module 9: Common Strata Dispute
i. Late payment of service charge and sinking fund
ii. Inter-floor leakage and damage to the party wall
iii. Defect of common property

3.00pm - 3.30pm​ Afternoon Refreshments

3.30pm – 5.00pm Module 9: Common Strata Dispute (Continued)

5.00pm End of Day 2

 i. Annual General
Meeting
ii. Extraordinary
Module 8: General Meeting
Meetings of iii. Meeting proceedings
Management of committee
Bodies
8(i). Annual General
Meeting
Joint Management Body

• Established upon the convening of 1st AGM under

Section 17 of the Strata Management Act 2013
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
 Checklist for Developer –
BEFORE 1st 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
• INSERT FORM 5
 Checklist for Developer –
BEFORE 1st 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
 Checklist for Developer –
DURING 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 chair the meeting
❑To answer the question which is relevant to the
agenda/proposed resolution
❑To take the minutes
 Checklist for Developer –
AFTER 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
• Insert Form 4
 Checklist for JMC–
AFTER 1st 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
• Insert Form 5A
 Checklist for JMC–
AFTER 1st 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
Management
Corporation
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
• Example: 33 warehouses. 1st MC AGM needs to be held
when strata titles have been registered for 9 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
 Checklist for Developer –
BEFORE 1st 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
• Insert Form 14
 Checklist for Developer –
BEFORE 1st 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
 Checklist for JMB –
BEFORE 1st 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
 Checklist for Developer/JMB –
DURING 1st 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 chair the meeting
❑To answer the question which is relevant to the
agenda/proposed resolution
❑To take the minutes
 Checklist for MC –
AFTER 1st 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
 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 Developer –
AFTER 1st 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 1st 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 1st AGM
 a) Person who are entitled to
vote
b) Proxy
General c) Voting Rights
Rules of d) Passing Votes
AGM e) Quorum
f) Length for notice of meeting
a) Person who are entitled to vote

• Strata owners who vote during general meeting

• If they have settled all the Charges, Contribution to
Sinking Fund and other money due
• At least 7 days BEFORE the meeting
 b) Proxy

• Act as proxy for ONLY 1 Strata Owner

• For Natural Person
– instrument of appointment shall be in writing
and duly signed by Strata Owner or Strata Owner’s
attorney
• For Company, Society, Statutory Body or any other
Body
– instrument of appointment shall in writing
either in seal or signed by its officer or its attorney
c) Voting Rights

i. Strata Owner (not co-Strata Owner)

ii. Co-Strata Owner
iii. Proxy
 c) Voting Rights – Strata Owner

• Have 1 vote of each parcel on a show of hand

• On a poll, have such number of votes that
corresponding with the number of share units or
provisional share units attached to his parcel or
provisional block
• Developer has the voting rights of those unsold parcels
or unsold provisional block (if paid)
• For not natural person, authorization letter is required
 c) Voting Rights – Co-Strata Owner

• Co-Strata Owner means of a jointly appointed proxy

• In absence of proxy, co-Strata Owner shall not be
entitled to vote on a show of hands (except unanimous
resolution is required or any co-Strata Owner demand
a poll)
• On a poll, co-Strata Owner 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
 c) Voting Rights – Proxy

• Have vote on a show of hand or on poll

• If a Strata Owner is appointed as a proxy by another
Strata Owner, the said Strata Owner who acts as proxy
may vote as proxy as well as vote in his own rights
 Proxy vs Representative
Company’s Representative Proxy
Appointment Duly authorized under its An instrument
seal or the hand of its appointing a proxy in
director. writing under the hand
The company of the proprietor making
representative can be any the appointment or his
one and DO NOT need to attorney.
be an employee or director A person may act as
of the company. proxy for only one
proprietor at any one
general meeting.
 Proxy vs Representative
Company’s Representative Proxy
Eligibility to be Yes, subject to: Not eligible for
elected as a •Individual, natural person; election.
member of
•At least 21 years of age
management
committee •Nominated for election by a
proprietor of a parcel which is a
company, society, statutory body
or any other body.

•Certain limitations for

proprietor who owns more than
2 parcels.
d) Passing Votes

• At least 3/4 of total votes for Special Resolution

• At least 2/3 of total share units for Comprehensive
Resolution
• 100% votes for Unanimous Resolution
• At least 1/2 of total votes for other general matters
(beside all stated above)
e) Quorum

• 1/2 of Strata Owners who are entitled to vote present

(either in person or proxy)
• Within 30 mins after time appointed for meeting, if
quorum is not present, those Strata Owners entitled
to vote who are present shall constitute a quorum
• The Developer shall be considered as one person
(regardless number of unsold parcels)
f) Length for notice of Meeting

• Min 21 days’ notice for Special Resolution and

Unanimous Resolution
• Min 30 days’ notice for Comprehensive Resolution
• Min 14 days’ notice for Ordinary Resolution
 (C)(3)(4) Resolutions
Types Purposes Passing votes Notice

1) Ordinary General matters 1/2 (50%) (quorum) 14 days

Simple majority

2) Special Additional insurances 3/4 (75%) (quorum) 21 days

(except damage
policy) & additional
by-laws

3) Comprehensive LCP & SMC 2/3 ( 66.66%) 30 days

4) Unanimous Acquisition of 1/1 (100%) (quorum) 21 days

additional land, grant
and acceptance of
easements
Group Discussion
What can you do in an AGM if:
1. You are unsure about the
participation of proxy;
2. Type of resolution required
for an agenda; and
3. Whether you have a quorum
to start the General
Meetings.
8(ii).
Extraordinary
General
Meeting
Extraordinary General Meeting
Flow Chart for Extraordinary General Meeting
Checklist
Checklist
Checklist
Checklist
8(iii). Meeting
Proceedings of
Committees
Committee of
Management
Body
 Committee

Number of members of Committee

Eligibility of Committee Members

a) No. of Members of Committee

• At least 3 and not more than 14

• For the cases where there are not more than 3 strata
owners, all strata owners are the members of committee
• No Chairman, Secretary or Treasurer shall hold office for
more than 2 consecutive years
• No members shall hold office for more than 3 consecutive
terms
b) Eligibility of Committee Members
Flow Chart of Meeting Proceeding of Committee
 • Is there a difference in
Group process, composition and
Discussion duties between the Joint
& Practical Management Committee
and Management
Exercise Committee
 i. Service Charge VS
Module Sinking Fund
ii. Collection of service
9: charge and sinking fund
iii. Inter-floor leakage and
Common damage to party wall
iv. Defect of common
Strata property
Dispute
9(i). Service
Charge
VS
Sinking
Fund
Please list down
what items are
covered by the
service charge and
sinking fund
respectively?
- What are the
differences?
9(ii).
Collection of
service
charge and
sinking fund
 Fifth Schedule (Clause 19)
FORM OF CHARGE STATEMENT
Project:
For the year:

No. Date:
Description Estimated Monthly Estimated Annual Expenses
Expenses details: Expenses (RM) (RM)
1. General repair/maintenance

2. Electricity supply

3. Electrical system maintenance

4. Fire fighting system maintenance

5. Generator system maintenance

6. Lift/escalator system maintenance

7. Air conditioning system maintenance

8. Security system maintenance

9. Main television reception equipment maintenance

10. Intercom repair and maintenance

11. Building automation system

No. Description Estimated Monthly Estimated Annual
Expenses (RM) Expenses (RM)
12. Water supply
13. Swimming pool maintenance
14. Sewerage maintenance
15. Refuse collection/disposal
16. Car park maintenance
17. Pest control
18. Security services
19. Cleaning/cleansing services
20. Gardening and landscaping
21. Signage
22. Bank charges
No. Description Estimated Monthly Estimated Annual
Expenses (RM) Expenses (RM)
23. Audit fee
24. Management fee
25. Management office expenses
26. Staff expenses
Total expenses RM RM
**Amount per proposed share unit RM RM
Number of proposed share units assigned to
the said Parcel by the Developer’s licensed
land surveyor
Amount of service charge RM RM
9(iii). Inter-floor
leakage and
damage to party
wall
Inter-Floor Leakage/Damage to Party Wall

Means any evidence of dampness, moisture or water

penetration –

(a) On the ceiling/wall that forms part of the interior of a

parcel, common property or limited common property; or
(b) on any furnishing material applied to the ceiling/wall that
forms part of the interior of the parcel, common property
or limited common property.

Parcel includes an accessory parcel which is used or intended

to be used in conjunction with a parcel.
 Party responsible to rectify

• Presumption that the defect is within the parcel above

the affected parcel;

• Any defect in any pipe or meter that serves more than

one parcel is a defect of the common property;

• Any defect in any pipe or meter that serves only one

parcel is a defect of that parcel; and

• Any defect during the defect liability period shall be

responsibility of the developer.
 Defect Claim Procedures

7 days 5 days 7 days

Notice from Certificate of inspection

affected parcel issued by management
owner to
management office -determine cause
-determine party to repair

Rectification
Inspection by
management
9(iv). Defect of
common property
Schedule H
Section
30 (1) &(2)
Schedule H – Section 30
Defect Liability Claim

• Notice from Purchaser to Developer on Defect

[Section 30 (1)]
• Developer to make good within 30 days from Notice
S.30 (1)
30 Days

Done Not Done [S30(2)]

- Purchaser notify the Developer the cost of

repairing the defect AND give Developer another
30 days to repair the defect.
- Purchaser can carry out the repair works after
the Developer has failed to repair after 30 days
- Purchaser entitled to claim from Developer the
costs of repair & Developer has to pay the
purchaser within 30 days after receipt of
Purchaser’s written demand.
 Strata
Management
Seminar: Sales
and Marketing
Consideration
Chris Tan Chur Pim
Managing Partner
CHUR ASSOCIATES®
advocates & solicitors ||| registered trade mark agent
Part 1 Day 1 Part 1 Day 2
Module 1: Module 3:
Fundamental of Malaysia Real Role of The Local Authority
Estate
Module 4:
Property Manager as a Tool in
Module 2: Promoting Malaysian Property
Overview Strata Property
Development Module 5:
Promoting the Advantages of
Strata Property

Refresh – Part 1
Part 2 Day 1 Part 2 Day 2

Module 6: Module 8:
Prescribed by Laws and Meetings of Management Bodies
Additional By-Laws

Module 7: Module 9:
Issues and Challenges of Common Strata Disputes
Management Bodies in Strata
Management

Refresh – Part 2
 Get your copy from
Shopee.com.my
Or contact Chur Associates for
bulk purchase

Chur Associates®
Chur Associates ®
Chur Associates ®