Formation of

JMBs/MCs
&
Handling Over

By Chris Tan
Founder and Managing Partner
CHUR ASSOCIATES®
Advocates & Solicitors ||| Registered Trade Mark Agent
Who are the Management Bodies
Who are the Management Bodies
a) Vacant Possession of parcels are delivered to
the Strata Owners before issuance of strata
titles
a) VP delivered BEFORE strata titles
Who are the Management Bodies
b) Vacant Possession of parcels are delivered to
the Strata Owners after issuance of strata
titles
b) VP delivered AFTER strata titles
 Joint Management Body
• Established upon the convening of 1st AGM
under Section 17 of the Strata Management
Act 2013
 Joint Management Body
a) When to convene 1st AGM of JMB

b) Process of convening 1st AGM of JMB

 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

Form of Proxy

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 organize 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

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 1st 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 1st AGM
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 1st AGM
To inform and register with the Commissioner the
name of JMB within 30 days from the date of 1st
AGM
To make sure all items & docs as mentioned in Form
4 are in order and acknowledged receipt of the same
Management Corporation
 Management Corporation
• Established upon the opening of book of
strata register under Section 17 of Strata Titles
Act 1985
• Section 14 of STA, Director of Lands and Mines
shall direct the Registrar to open a book of the
strata register upon receiving certified strata
plan from Director of survey
• Commence operation upon convening of 1st
AGM
 Management Corporation
a) When to convene 1st AGM of MC

b) Process of convening 1st AGM of MC

 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
 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

Form of Proxy

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 organize 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 1st 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
 Form 15 Form 7

Form 13
 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
1st AGM
If the Developer fails to hand over the audited
account (up to hand over) no later than 1 month
after 1st AGM, the Developer shall hand over the
audited account to MC within 4 months after the
date of 1st AGM
Strata Training for Developer
Strata Handling Over Retainer
PACKAGE 1 PACKAGE 2 PACKAGE 3
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christan@churassociates.com