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Section 141

of Strata Management Ordinance, 2019

State OrdinanceIn forceProvision 137 of 137

Section 141

—

(1)

All references to the repealed Strata Titles

Ordinance, 1995 [Cap. 18], in any written law or document shall, when this Ordinance comes into operation, be construed as references to this Ordinance or the Strata (Subsidiary Titles)

Ordinance, 2019 [Cap. 75/2019], as the case may be.

(2)

Nothing in this Ordinance shall affect the validity of anything done under the repealed Strata Titles Ordinance, 1995

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[Cap. 18], before the date of coming into operation of this

Ordinance.

(3)

Any person who, immediately before the commencement of this Ordinance, is appointed under the repealed

Strata Titles Ordinance, 1995 [Cap. 18], shall continue as such as if he was appointed under this Ordinance.

(4)

Every accounts or funds established by the developer or any management body before the commencement of this

Ordinance shall continue and be deemed to be established under this Ordinance.

(5)

Any notice, order or other document prepared, issued or made under the repealed Strata Titles Ordinance, 1995

[Cap. 18], shall, in so far as it is not inconsistent with the provisions of this Ordinance, continue and be deemed to have been prepared, issued or made under this Ordinance.

(6)

Any decision made under the repealed Strata Titles

Ordinance, 1995 [Cap. 18], shall, in so far as it is not inconsistent with the provisions of this Ordinance, continue and be deemed to have been made under this Ordinance.

(7)

(a)

Any application or other document filed for approval under the repealed Strata Titles Ordinance, 1995 [Cap. 18], before the commencement of this Ordinance and was not approved before the date shall, where applicable, be deemed to be an application or a document filed for approval under this Ordinance.

(b)

Where anything has been commenced by or carried out by the Registrar, Superintendent, Director or State Planning

Authority as the case may be under the repealed Strata Titles

Ordinance, 1995 [Cap. 18], before the commencement of this

Ordinance, such thing may be carried out as if it is carried out by or under the authority of the Commissioner under this Ordinance.

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FIRST SCHEDULE

DUTIES AND POWERS OF DEVELOPER DURING DEVELOPER’S

MANAGEMENT PERIOD

(Section 8(2))

Duties of developer 1.

The duties of the developer during the developer’s management period shall be as follows:

(a)

to manage and maintain the building or land intended to be subdivided into parcels and the common property, and keep it in a state of good and serviceable repair;

(b)

to determine and impose the maintenance charge to be deposited into the maintenance account;

(c)

to determine and impose the contribution to the sinking fund to be deposited into the sinking fund account;

(d)

to effect insurance according to this Ordinance;

(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 building or land intended to be subdivided into parcels;

(g)

to ensure that the maintenance account and sinking fund account are audited and to provide audited financial statements for information to all purchasers;

(h)

to enforce by-laws;

(i)

to comply with any direction of the Commissioner for matters connected therewith; and

(j)

to do such other things as may be expedient or necessary for the management and maintenance of the building or land intended to be subdivided into parcels and the common property.

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Powers of developer 2.

The powers of the developer during the developer’s management period shall be as follows:

(a)

to collect the maintenance charge 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 management and maintenance of the building or land intended to be subdivided into parcels and the common property;

(d)

to recover from any parcel owner any sum expended by the developer in respect of that parcel in complying with any such notice or order referred to in paragraph (1)(e); and

(e)

to do all things reasonably necessary for the performance of its duties under this Ordinance.

SECOND SCHEDULE

PROVISIONS ON FIRST ANNUAL GENERAL MEETING OF

JOINT MANAGEMENT BODY

(Section 17(1))

Developer to give notice 1.

The developer shall give written notice of the first annual general meeting of the joint management body to all purchasers not less than twenty-one days before the meeting, and a copy of such written notice shall be displayed at a conspicuous part of the development.

Developer to prepare annual budget 2.

The developer shall prepare and place before the first annual general meeting of the joint management body for approval an annual budget that sufficiently sets out the expected and estimated expenditure required to manage and maintain the building or land intended to be subdivided into parcels and the common property which shall be for a period of twelve months starting on the first day of the month following the date of the first annual general meeting.

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Agenda for first annual general meeting 3.

The agenda for the first annual general meeting of a joint management body shall include the following matters:

(a)

to determine the number and to elect the members of the joint management committee;

(b)

to approve the annual budget prepared by the developer under paragraph (2);

(c)

to determine the amount to be paid by a parcel owner as the maintenance charge, 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 maintenance charge, or contribution to the sinking fund, by the parcel owner;

(e)

to consider the audited accounts;

(f)

to confirm the taking over by the joint management body of insurances effected by the developer under this Ordinance;

(g)

to make by-laws; and

(h)

to consider any other matter connected with the management and maintenance of the common property of the building or land intended to be subdivided into parcels.

Miscellaneous 4.

If within half an hour after the time appointed for the meeting no purchaser entitled to vote turns up or less than three purchasers who are eligible for election accept a nomination to be elected as 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 property manager or managing agent under Part VI to manage and maintain the buildings or lands intended to be subdivided into parcels and the common property comprised in the development.

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THIRD SCHEDULE

DUTIES AND POWERS OF JOINT MANAGEMENT BODY

(Section 19)

Duties of joint management body 1.—

(1)

The duties of the joint management body shall be as follows:

(a)

to manage and maintain the building or land intended to be subdivided into parcels and the common property, and keep it in a state of good and serviceable repair;

(b)

to determine and impose the maintenance charge to be deposited into the maintenance account;

(c)

to determine and impose the contribution to the sinking fund to be deposited into the sinking fund account;

(d)

to effect insurance according to this Ordinance 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 building or land intended to be subdivided into parcels;

(g)

to ensure that the maintenance account and sinking fund account are audited and to provide audited financial statements for information to its members;

(h)

to enforce by-laws;

(i)

to comply with any direction of the Commissioner for matters connected therewith; and

(j)

to do such other things as may be expedient or necessary for the management and maintenance of the building or land intended to be subdivided into parcels and the common property.

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Powers of joint management body 2.

The powers of the joint management body shall be as follows:

(a)

to collect the maintenance charge 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 of an amount equivalent to ten percent of the maintenance charge or such amount determined from time to time at a general meeting of the management corporation which shall not be less than ten percent of the maintenance charge;

(c)

to authorize expenditure for the carrying out of management and maintenance of the building or land intended to be subdivided into parcels and the common property;

(d)

to recover from any parcel owner any sum expended by the developer in respect of that parcel in complying with any such notice or order 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 management and maintenance of the common property of the building or land intended to be subdivided into parcels;

(g)

to make by-laws for the proper management and maintenance 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 Ordinance.

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FOURTH SCHEDULE

PROVISIONS FOR MANAGEMENT CORPORATION

(Sections 20(2), 46(2) and 52(6))

Interpretation 1.—

(1)

In the application of this Schedule to any management corporation—

“convenor” means, in the first annual general meeting,

(a)

the developer under either section 17(1) or 47(1); or

(b)

any person appointed by Commissioner under either section 17(3) or 47(3), of this Ordinance.

“general meeting” means a general meeting of the management corporation and includes the first annual general meeting;

“immediate family member”, in relation to any person, means a spouse, child, legally adopted child, step-child, sibling or parent of that person.

Constitution of management committee 2.—

(1)

Subject to the provisions of this section and to any regulations or by-laws made under this Ordinance, every management corporation shall have a management committee which shall consist of such number of persons as the management corporation may determine in a general meeting, but in no case exceeding a total of fourteen natural persons (inclusive of member of the subsidiary management committee of a subsidiary management corporation appointed in section 52(4)).

(2)

Notwithstanding subsection (1), where a management corporation has not more than three subsidiary proprietors, the management committee of the management corporation shall consist of all the subsidiary proprietors who are natural persons or in the case of a subsidiary proprietor which is a company, society, statutory body or any other body, its nominee.

(3)

Where a management corporation has only one subsidiary proprietor, the sole subsidiary proprietor may make any decision that a duly convened management committee may make under this Ordinance, and any such decision shall be deemed to be a decision of the management committee of the management corporation.

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(4)

All members of the management committee shall be elected at each annual general meeting of the management corporation.

(5)

There shall be a chairman, secretary and treasurer, all of whom shall be natural persons, to be elected by the management committee from among its members immediately after the conclusion of the general meeting but no chairman, secretary or treasurer shall hold office for more than two consecutive terms unless otherwise determined by a special resolution of the management corporation.

(6)

All members of the management committee of a management corporation shall retire from office at the conclusion of the next annual general meeting. A retiring member of the management committee shall be eligible for re-election.

(7)

No member of the management committee shall hold office for more than three consecutive terms unless otherwise determined by a special resolution of the management corporation.

(8)

A person shall not be eligible for election as a member of the management committee of a management corporation unless he is an individual of at least twenty-one years of age and who—

(a)

is a subsidiary proprietor or a subsidiary co-proprietor of a parcel; or

(b)

is nominated for election by a subsidiary proprietor of a parcel which is a company, society, statutory body or any other body; or

(c)

is not a subsidiary proprietor of a parcel but is a member of the immediate family of a subsidiary proprietor who owns two or more parcels and is nominated for election by that subsidiary proprietor.

(9)

For the avoidance of doubt, a proxy appointed by a subsidiary proprietor shall not be eligible for election.

(10)

Notwithstanding subparagraph (8), an individual referred to in that sub-paragraph shall not be eligible for election as a member of the management committee of a management corporation if, on the seventh day before the date of election—

(a)

where he is a subsidiary proprietor or subsidiary co-proprietor of a parcel, all or any part of the Maintenance charge, or contribution to the sinking fund or any other money due and payable to the management corporation in respect of that parcel are in arrears;

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(b)

where he is nominated for election by a subsidiary proprietor of a parcel which is a company, society, statutory body or any other body, all or any part of the Maintenance charge, or contribution to the sinking fund or any other money due and payable to the management corporation in respect of that parcel are in arrears; or

(c)

where he is a member of the immediate family of a subsidiary proprietor of a parcels and is nominated for election by that subsidiary proprietor, all or any part of the Maintenance charge, or contribution to the sinking fund or any other money due and payable to the management corporation in respect of any parcel are in arrears.

(11)

Notwithstanding subparagraph (8), and without prejudice to subparagraph (10), the following persons shall also not be eligible for election as a member of the management committee:

(a)

an individual who is a subsidiary co-proprietor of a parcel with another subsidiary co-proprietors, if that other subsidiary co-proprietor of that parcel has already been nominated as a candidate at that election; and

(b)

an individual who is nominated for election by a subsidiary proprietor who owns two or more parcels if that subsidiary proprietor together with any of his nominees—

(i)

nominated at the same election; or

(ii)

elected to the management committee at the same or other election, or that subsidiary proprietor’s nominees exceeds the threshold number for that subsidiary proprietor determined in accordance with subparagraph

(12)

.

(12)

For the purposes of determining the eligibility of any individual who is nominated for election as a member of the management committee under subparagraph (11)(b), the threshold number for that subsidiary proprietor shall be—

(a)

the number of management committee members that is proportional to that subsidiary proprietor’s share units in relation to the aggregate share units of the development, ignoring any fraction; or

(b)

forty-nine percent of the number of management committee members determined under sub-paragraph (1), ignoring any fraction, whichever number is lower.

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(13)

For the purposes of subparagraph (12), the word “subsidiary proprietor” shall include the subsidiary proprietor who owns two or more parcels but the subsidiary proprietor’s number of parcels shall exclude any parcel that has been sold to any person who has yet to be duly registered as a subsidiary proprietor.

(14)

An absent subsidiary proprietor shall not be nominated for election as a member of the management committee unless he has appointed a proxy and that subsidiary proprietor has given his written consent to be nominated and elected as a member of the management committee.

Nomination of candidates for election as management committee member 3.—

(1)

A nomination of a person for election as member of the management committee of a management corporation is of no effect if subparagraphs (2) and (3) are not complied with for that nomination.

(2)

A nomination for election to be a member of the management corporation:

(a)

may be oral or in writing;

(b)

must—

(i)

if oral, be made at the general meeting of the management corporation or subsidiary management corporation for the purposes of the election; or

(ii)

if in writing, be given at least seven days before the start of the meeting to the secretary of the management corporation or subsidiary management corporation, or to the convenor of the meeting in the case of the first annual general meeting; and

(c)

must state—

(i)

the name of the person nominated; and

(ii)

the name of the person making the nomination.

(3)

A nomination whether oral or made in writing, made for the purposes of an election at a general meeting of a management corporation or subsidiary management corporation, is effective only if it is accompanied by the consent of the candidate—

(a)

given in writing at least seven days before the start of the meeting to the secretary of the management corporation or subsidiary management corporation, or to the convenor of the meeting in the case of the first annual general meeting; or

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(b)

given orally at the meeting.

(4)

Any candidate nominated for election to be a member of the management corporation may effectively withdraw only by the candidate in person before the commencement of the election at a general meeting.

Vacation of office of member of management committee 4.—

(1)

A person who is the chairman, secretary or treasurer or a member of a management committee shall vacate or shall be deemed to have vacated his office as such member—

(a)

if he resigns;

(b)

if he dies;

(c)

if he becomes a bankrupt;

(d)

if he is no longer a subsidiary proprietor;

(e)

if he has been convicted on a charge in respect of—

(i)

an offence involving fraud, dishonesty or moral turpitude;

(ii)

an offence under any law relating to corruption;

(iii)

an offence under this Ordinance; or

(iv)

any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

(f)

if his conduct, whether in connection with his duties as a member of the management committee or otherwise, bring discredit on the management committee;

(g)

if he is of unsound mind or otherwise incapable of discharging his duties;

(h)

in the case of the chairman, if he absents himself from three consecutive scheduled meetings of the management committee without the leave of the management committee;

(i)

in the case of a member of the management committee other than the chairman, if he absents himself from three consecutive meetings of the management committee without the leave in writing of the chairman;

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(j)

in the case where the subsidiary proprietor of the parcel is a company, society, statutory body or any other body, as the case may be, if he by resolution of a company, society, statutory body or any other body as the case may be, removed as their representative;

(k)

if he is in default of payment of the Maintenance charge, or contribution to the sinking fund or any other money due to the management corporation (including interest) for a continuous period of three months; or

(l)

in the case of a member of the management committee, if he commits a serious breach of the by-laws and has failed to remedy the breach, if the breach is capable of being remedied within fourteen days of the date of receipt of notice from the management committee.

(2)

Within fourteen days of the occurrence of any of the events in sub-paragraph (1) except for the event under subparagraph (1)(k), the company, society, statutory body or any other body may appoint another representative to replace the member of the management committee and to hold the office vacated.

(3)

Except where the management committee consists of all the subsidiary proprietors, the management corporation may, at any time, by special resolution at an extraordinary general meeting remove any member of the management committee from office and subject to paragraph 2(9) appoint another subsidiary proprietor in his place to hold office until the next annual general meeting.

(4)

A member of the management committee may resign his office at any time in writing under his hand addressed to the management corporation.

(5)

Where a vacancy in the membership of the management committee occurs by operation of subparagraph (1) and in the case where subparagraph (2)

shall not apply, the remaining members may, subject to paragraph 2(9), appoint another subsidiary proprietor to be a member until the next annual general meeting.

Quorum for management committee meetings 5.

Except where there is only one subsidiary proprietor, a quorum at meetings of the management committee shall be —

(a)

two, where there are not more than four members;

(b)

three, where there are five or six members;

(c)

four, where there are seven or eight members;

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(d)

five, where there are nine or ten members;

(e)

six, where there are eleven or twelve members; and

(f)

seven, where there are thirteen or fourteen members.

Meetings and proceedings of the management committee 6.—

(1)

The management committee shall meet at such times and places and at such intervals as the chairman may decide, but the chairman shall not allow more than two months to lapse between meetings.

(2)

The chairman shall call for a meeting if requested to do so by the

Commissioner or by at least two members of the management committee, failing which the Commissioner may appoint any member of the management committee to convene the meeting.

(3)

Notice of every meeting shall be given to all members of the management committee not less than seven days before the date appointed for the meeting and such notice shall be displayed on the notice board of the management corporation.

(4)

Every meeting of the management committee shall be presided over by the chairman of the management committee, and in the absence of the chairman, the members of the management committee who are present may elect one of them to chair such meeting.

(5)

Questions arising at meetings shall be decided by a simple majority vote on a show of hands, and if on any question to be determined by the management committee there is equality of votes, the chairman shall have a casting vote.

(6)

Subject to subparagraph (4), the management committee may regulate its own procedure at meetings.

Power to employ agents and servants 7.

Without prejudice to any written law, the management committee may employ, for and on behalf of the management corporation, such agents and servants as it thinks fit on a yearly basis, in connection with or to facilitate the exercise of the powers and the performance of the duties of the management corporation.

Keeping of records and accounts of management corporation 8.—

(1)

The management committee shall keep minutes of all its proceedings and minutes of general meetings.

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(2)

The management committee shall—

(a)

cause a copy of the minutes of a meeting of the management committee, which is signed by the chairman of the meeting or the secretary, to be displayed on the notice board within twenty one days after the meeting; and

(b)

cause a copy of a minute of any resolution of the management committee, or of the management corporation passed in accordance with this Ordinance to be displayed on the notice board within twenty one days after it is passed.

(3)

A copy of any minutes referred to in subparagraph (2) shall be kept displayed on the notice board until it is replaced by a copy of the minutes of the subsequent meeting.

(4)

The Commissioner may require the management committee to give each subsidiary proprietor a copy of the minutes referred to in subparagraph

(2)

(a)

or (b) within the period specified in that subsection.

(5)

The minutes of the meeting signed by the chairman of the meeting or the secretary shall be admissible in any legal proceedings as prima facie evidence of the facts stated in them without further proof.

(6)

The management committee shall—

(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; and

(b)

on the application of a subsidiary proprietor or chargee of a parcel or a proprietor of a provisional block (or any person authorized in writing by him), make the books of accounts available for inspection during office hours of the management corporation, at a fee not exceeding fifty ringgit for each inspection.

(7)

The management committee shall prepare for each annual general meeting, proper accounts relating to all monies of the management corporation and the management corporation’s income and expenditure.

(8)

The management committee shall, within twenty eight days of a general meeting, file with the Commissioner copies of—

(a)

the audited accounts of the management corporation together with the auditor’s report which has been presented to the general meeting;

(b)

the resolutions passed at the general meeting; and

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(c)

the minutes of the general meeting.

and each copy of such audited account, resolution and minutes to be certified true copy by the chairman or the secretary of the management committee.

(9)

The management committee shall within twenty eight days of a general meeting extend copies of the minutes of the meeting to all subsidiary proprietors or display the minutes of the meeting on the notice board of the management corporation.

(10)

The accounts of the management corporation shall be audited annually by an approved company auditor appointed by the management committee.

(11)

The management committee shall permit the Commissioner at all reasonable times, full and free access to accounting and other records of the management corporation, and permit the Commissioner to make copies or make extracts from any such accounting or other records.

Acts of management committee valid notwithstanding vacancy, etc.