Section 26 — STRATA MANAGEMENT ACT 2013

(a)

cause to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from its first annual general meeting;

(b)

appoint an approved company auditor to carry out the audit of the accounts annually and the accounts shall be—

(i)

in the case where moneys are to be transferred under paragraph 27(2)(a), audited up to the date of the actual transfer; and

(ii)

in the case where the accounts are to be presented at the first annual general meeting of the management corporation, audited up to a date not earlier than three months before the meeting;

Act 757

(c)

file with the Commissioner a certified true copy of the audited accounts together with the auditor’s report within fourteen days of the accounts being audited; and

(d)

permit the Commissioner or any person authorized by the Commissioner in writing to act on its behalf full and free access to the accounts and records of accounts and to make copies or extracts of those accounts and records of accounts.

(2)

Notwithstanding subsection (1), the Commissioner shall have, at any time, the right to appoint an approved company auditor to investigate the accounts and records of accounts specified in subsection (1), and the joint management body shall pay all the expenses incurred for that purpose.

(3)

The joint management body shall furnish to the Commissioner or any public authority such returns, reports, accounts and information with respect to its activities and finances as the

Commissioner may, from time to time, require or direct.

(4)

The returns, reports, accounts and information referred to in subsection (3) shall be in such form as the Commissioner may, from time to time, specify.

(5)

If the joint management body fails to comply with subsection

(1)

, (2), (3) or (4), every member of the joint management committee commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(6)

In proceedings against the member of the joint management committee for an offence under subsection (5), it is a defence if the member proves that—

(a)

the offence was committed without his knowledge, consent or connivance; and

(b)

he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence.

Strata Management 49

Dissolution of joint management body