8 Popular FAQ about JMB JMC MC in Strata Management

Should not later than 12 months from the date of Vacant Possession (refer to Section 17, SMA). It is a norm to establish the JMB on the 10th month from the 1st Vacant Possession although the SMA allows for maximum of 12 months. Earlier date may not be practical as occupation of the strata units could be quite low. It is better to elect among residents (purchasers who have moved in to stay) as committee members than the investors (who do not stay at the strata units).

The JMC elected should keep organizing engagement session with the parcel owners to encourage their involvement. As committee members from the parcel owners may not have the necessary experience, hence the developer through his representative as a member of the joint management committee should play an active role as continuous service to your customers. JMC may want to engage a good property manager who will carry out the day-to-day property maintenance and management with high professionalism and etiquette.

All members of the joint management committee have to be elected during the AGM. Should a vacancy arise, the remaining members may appoint any parcel owner to be the member as per Second Schedule Paragraph 3(5) of SMA.

Reference: Under Second Schedule Paragraph 3(5) of SMA, where a vacancy in the membership of the management committee occurs otherwise than by operation of subparagraph 3(1) or 3(3). The remaining members may, subject to subparagraph 2(8), appoint another proprietor to be a member until the next annual general meeting. Subparagraph 3(1): vacation of office of member of management committee. Subparagraph 3(3): Except where the management committee consists of all the proprietors, the MC may, at any time, by resolution at an EGM remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next annual general meeting. Subparagraph 2(8): For the avoidance of doubt, a proxy appointed by a proprietor shall not be eligible for election.

As one seat on the JMC is reserved for the Developer, the reason for disallowing for the formation of MC should have been discussed during the JMC meeting, and known to the developer. If there is no valid reasons, the developer is to inform and seek COB assistance to conduct the 1st AGM of the MC.

A minimum of 4 members is good if they are active and capable. A good and responsible property manager is as important as the Management Committee. Select a good property manager as they are the one who will carry out the day-to-day property maintenance and management.

Property Manager must distribute account to JMC on a monthly basis. Monthly account must be presented and discussed during the JMC meeting, which must be held every 2 months, for deliberation and approval. Treasurer must go through the account in detail especially debtor and creditor report and the ageing. The JMB account has few transactions except the collection of monthly maintenance charges and sinking fund. It is not a complicated account and the management committee should find from the property manager the reasons that account cannot be finalized, and then take appropriate action including making report to Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia.

The committee member has to vacant office as per Second Schedule Paragraph 3 of SMA. JMB/MC to make a report to the COB for advice and action. Under Paragraph 3(3) of Second Schedule in SMA, except where the management committee consists of all the proprietors, the JMB/MC may, at any time, by resolution at an EGM to remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next AGM.

Developer must set a high standard in property management during the Developer’s Management Period in order to create awareness and expectation.

In order too manage expectation, can consider to:-
Conduct survey every 3 months among the strata unit owners and residents (online survey) to manage expectation. Hold town hall meeting every 6 months to discuss any management issue. Appoint registered property manager and the term of appointment is 1 year subject to renewal. Seek endorsement at the AGM on the appointment or renewal of property manager so that the level of service can be discussed. Report and seek advice from COB. Report and seek advice from Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia.