Section 27 — STRATA MANAGEMENT ACT 2013

(2)

The joint management body shall, not more than one month from the date of the first annual general meeting of the management corporation—

(a)

transfer all balances of moneys in the maintenance account and in the sinking fund account, after payment of all the expenditure which have been properly charged to the accounts, to the management corporation;

(b)

hand over to the management corporation—

(i)

any additional by-laws;

(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 and liabilities of the joint management body;

(iv)

all the documents delivered by the developer to the joint management body under subsection 15(3);

and

(v)

all records relating to and necessary for the maintenance and management of the building or land intended for subdivision into parcels and the common property.

(3)

If only unaudited accounts have been handed over under subparagraph (2)(b)(ii), the joint management body shall hand over to the management corporation the audited accounts of the joint management body not more than three months from the date of the first annual general meeting of the management corporation.

(4)

If the joint management body fails to comply with subsection (2) or (3), 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.

Act 757

(5)

In proceedings against the member of the joint management committee for an offence under subsection (4), 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.

Balances not transferred shall vest in management corporation