Establishment of a Joint Management Body
(1) Where a building or land intended for subdivision into parcels has been completed—
(a) before the commencement of this Act and vacant possession of the parcels has been delivered by the developer to purchasers but the management corporation has not come into existence, a Joint Management Body shall be established consisting of the developer and the purchasers upon the convening of the first meeting not later than twelve months from the commencement of this Act; and
(b) on or after the commencement of this Act, a Joint Management Body shall be established consisting of the developer and the purchasers upon the convening of the first meeting not later than twelve months from the date of delivery of vacant possession of the parcels to the purchasers.
(2) The Body established by subsection (1) shall be a body corporate having perpetual succession and a common seal.
(3) The Body may sue and be sued in its name.
(4) The Body shall comprise the developer and the purchasers.
Duty of developer to convene meeting
(1) It shall be the duty of the developer to convene the first meeting of all purchasers.
(2) The developer shall give a written notice of the first meeting to all purchasers not less than fourteen days before the meeting.
(3) Without prejudice to subsection (1), if the developer fails to convene the first meeting within the specified period, the Commissioner may appoint a person to convene the first meeting of the Body within such time as may be specified by the Commissioner.
(4) The developer shall, until the establishment of the Body and subject to the provisions of this Act, be responsible for the maintenance and management of the property.
(5) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three months or to both.
First meeting of Joint Management Body
(1) The agenda for the first meeting of the Body shall include the following matters:
(a) the election of the office bearers of the Committee as provided for in subsection 11(2);
(b) to confirm the taking over by the Body of insurances effected by the developer;
(c) subject to subsection 23(2), to determine the amount to be paid by the purchasers to the Building Maintenance Fund for the maintenance and management of the common property of the building;
(d) the determination of the rate of interest payable by a purchaser in respect of late payment of charges; and
(e) any matter connected with the maintenance and management of the common property of the building.
(2) The quorum at the first meeting of the Body shall be onequarter of the purchasers who have paid maintenance charges in respect of their parcels to the Building Maintenance Account (“members entitled to vote”) of the developer.
(3) If within half an hour after the time appointed for the meeting, a quorum is not present, the members entitled to vote who are present shall constitute a quorum.
(4) All resolutions at the first meeting of the Body shall be decided by a show of hands.
(5) Notwithstanding subsection (4), joint purchasers shall not be entitled to vote except by way of a jointly appointed proxy.
(6) In the event of an equality of votes, the chairman shall have a casting vote.
(7) Where an hour after the time appointed for the meeting, no member entitled to vote turns up or all the members present, for any reason, refuse to be the office bearers of the Committee,
the developer 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 first meeting of the Body; or
(b) appoint a managing agent under subsection 25(1) to maintain the common property of the building.
Duty of Body to inform Commissioner of name of Body
(1) The Body shall inform and register with the Commissioner the name of the Body within twenty-eight days of the first meeting.
(2) The Commissioner may, upon an application by the Body, issue a certificate certifying that the Body has been duly constituted under this Act on the day specified in the certificate.
(3) The constitution of the Body under this Act shall not be affected in the event the first meeting is subsequently invalidated, the provision of subsection 6(1) is not complied with or a situation under subsection 6(7) occurs.
Duties and powers of Joint Management Body
(1) The duties of the Body include the following:
(a) to properly maintain the common property and keep it in a state of good and serviceable repair;
(b) to determine and impose charges that are necessary for the repair and proper maintenance of the common property;
(c) to insure and keep insured the building to the replacement value of the building against fire and such other risks as may be determined by the Body;
(d) to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building;
(e) to comply with any notices or orders 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 property;
(f) to prepare and maintain a register of all purchasers of the building;
(g) to ensure that the Building Maintenance Fund is audited and to provide audited financial statements for the information to the purchasers;
(h) to enforce house rules for the proper maintenance and management of the building; and
(i) to do such other things as may be expedient or necessary for the proper maintenance and management of the building.
(2) The powers of the Body shall include the following:
(a) to collect from purchasers maintenance and management charges in proportion to the allocated share units of their respective parcels;
(b) to authorize expenditure for the carrying out of the maintenance and management of the common property;
(c) to recover from any purchaser any sum expended by the Body in respect of that parcel in complying with any such notices or orders as are referred to under paragraph
(1)(e);
(d) to purchase, hire or otherwise acquire movable or immovable property for use by the purchasers in connection with their enjoyment of the common property;
(e) to arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the building;
(f) to make house rules for the proper maintenance and management of the building; and
(g) to do all things reasonably necessary for the performance of its duties under this Act.
(3) The Body shall be deemed—
(a) for the purposes of effecting any insurance under paragraph
(1)(c), to have an insurable interest in the building equal to its replacement value or any value as determined by the Body; and
(b) for the purposes of effecting any insurance under paragraph
(1)(d), to have an insurable interest in the subject matter of the insurance.
(4) Where the Body incurs any expenditure or performs any repair, work or act that it is required or authorized by or under this Part to do or consequent upon the service on the Body of any notice or order by any local authority or under any other written law, and the expenditure or the repairs, work or act were or was rendered necessary by reason of any wilful or negligent act or omission on the part of, or breach of any provision of its by-laws by, any purchaser or his tenant, lessee, licensee or invitee, the amount of that expenditure expended by the Body in performing the repairs, work or act shall be recoverable by the Body from that purchaser.
(5) The generality of this section shall not be prejudiced by any other provision in this Part conferring a power or imposing a duty on the Body.
Annual general meeting
(1) An annual general meeting of the Body shall be held to consider the Building Maintenance Fund and to transact such other business as may arise.
(2) The annual general meetings shall be held once in each year and not more than fifteen months shall elapse between the date of one annual general meeting and the next.
Extraordinary general meeting
(1) A general meeting other than the annual general meeting shall be known as an extraordinary general meeting.
(2) The Body—
(a) shall convene an extraordinary general meeting upon a requisition in writing made by the purchasers who are together entitled to at least one-quarter of the total number of parcels registered under section 12;
(b) shall convene an extraordinary general meeting upon receiving a direction in writing from the Commissioner for the transaction of such business as the Commissioner may direct; and
(c) may convene an extraordinary general meeting on such other occasion as the Body thinks fit.
(3) Where the Commissioner is satisfied that the Body has not been properly constituted, he may authorize in writing any purchaser to convene an extraordinary general meeting for such purposes as may be approved by the Commissioner.
Joint Management Committee
(1) The Body shall elect a Joint Management Committee who, subject to any restriction imposed or direction given by the Body at a general meeting, may perform the Body’s duties and conduct the Body’s business on its behalf, and may for that purpose exercise any of the Body’s powers.
(2) The Committee shall consist of the developer and not less than five and not more than twelve purchasers, who shall be elected at the annual general meeting of the Body and shall hold office for a period not exceeding three years or until the dissolution of the Body in accordance with section 15, whichever is earlier.
(3) From among the members of the Committee elected under subsection (2), there shall be elected a chairman, a secretary and a treasurer.
(4) The provisions of the First Schedule shall apply to the Committee.
(5) The State Authority may amend the First Schedule by order published in the Gazette.
Register of purchasers
The developer or Body, as the case may be, shall maintain a register in such form as the Commissioner may require, containing the following particulars in respect of all the parcels in the development area:
(a) the allocated share unit to be assigned to each parcel filed with the Commissioner;
(b) the floor area of the parcel referred to in paragraph (a);
(c) the name and address of every purchaser and if the purchaser is not a resident of Malaysia, the address in Malaysia at which notices may be served on the purchaser;
(d) the name and address of the solicitor acting for the purchaser in the sale and purchase of the parcel; and
(e) the number of parcels which are unsold.
Right of purchaser
On application by or on behalf of a person who is a purchaser, or by or on behalf of a person who is a prospective purchaser, the Body shall issue to that person a certificate certifying—
(a) the amount of charges payable by a purchaser;
(b) the time and manner of payment of the amount of charges;
(c) the extent, if any, to which the charges have been paid;
(d) the amount, if any, then recoverable by the Body in respect of the parcel;
(e) the sum standing to the credit of the Building Maintenance Fund and the sum in the account that has been committed or reserved for expenses already incurred by the Body;
(f) the nature of the repairs and estimated expenditure, if any, where the Body has incurred any expenditure or is about to perform any repairs, work or act in respect of which a liability is likely to be incurred by the purchaser of the parcel under any provision of this Act; and
(g) the amount paid and to be paid by the developer for unsold parcels.
House rules
(1) The Body shall—
(a) keep a record of the house-rules in force from time to time;
(b) on receipt of an application in writing made by a purchaser or by a person duly authorized to apply on behalf of a purchaser for a copy of the house rules in force, supply to such purchaser or the person duly authorized by him, at a reasonable cost, a copy of the house rules; and
(c) on the application of any person who satisfies the Body that he has a proper interest in so applying, make such house rules available for inspection.
(2) A copy of any house rules made by the Body and any amendment of any house rules for the time being in force, certified as a true copy under the seal of the Body, shall be lodged by the Body with the Commissioner within fourteen days of the passing of the resolution by the Body approving the house rules.
Dissolution of Joint Management Body
(1) The Body shall be deemed to be dissolved three months from the date of the first meeting of the management corporation for the building.
(2) The Body shall—
(a) not later than one month from the date of the first meeting of the management corporation, hand over to the management corporation—
(i) the house rules;
(ii) the audited accounts of the Building Maintenance Fund or, if such accounts have not been audited, the unaudited accounts;
(iii) all the assets and liabilities of the Body; and
(iv) records related to and necessary for the maintenance of the building and its common property; and
(b) if only unaudited accounts have been handed over under subparagraph (a)(ii); not later than three months from the date of the first meeting of the management corporation, hand over to the management corporation the audited accounts of the Body.
(3) If the Body fails to comply with this section, every member of the Body commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit and shall also be liable to a further fine not exceeding one thousand ringgit for every day during which the offence is continued after conviction.
(4) Where an offence under this section has been committed by the Body, every member of the Body shall be deemed to have also committed that offence unless, having regard to all the circumstances, he proves—
(a) that the offence was committed without his knowledge, consent or connivance; and
(b) that he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
