Appointment of managing agent
Open ↗(1) Where—
(a) a situation under subsection 6(7) occurs; or
(b) the Commissioner is satisfied, after due inquiry has been carried out by him or a person appointed by him, that the maintenance and management of a building is not carried out satisfactorily by the developer or the Body, as the case may be,
the Commissioner may appoint, by a written notification, one or more persons to act as managing agent to maintain and manage the building for a period to be specified by the Commissioner.
(2) A managing agent appointed under this Part shall enter into a management agreement with the developer or Body to carry out the duties and powers of the developer or Body as provided for under this Act.
(3) The managing agent shall be entitled to be paid such remuneration or fees as may be agreed upon between the managing agent and the developer or Body with the concurrence of the Commissioner, and such remuneration or fees shall be charged to the Building Maintenance Account or Building Maintenance Fund, as the case may be.
Independence of managing agent
Open ↗(1) A person shall not be appointed as a managing agent if the person has a professional or pecuniary interest in any building or land intended for subdivision into parcels.
(2) A person is regarded as having a professional or pecuniary interest in any building or land if—
(a) he has been responsible for the design or construction of the building;
(b) he or any of his nominees, officers or employees has any material interest in the building or land or any part of the building or land;
(c) he is a partner or is in the employment of a person who has any material interest in the building or land or any part of the building or land; or
(d) he or his family holds any interest in the building or land or part of the building or land whether directly, as a trustee or otherwise.
Managing agent to lodge bond
Open ↗A person shall not act as managing agent unless he has lodged with the Commissioner a bond in the form approved by the Commissioner and for the specified amount given by a bank, finance company or insurer and which binds the bank, finance company or insurer to make good any loss caused by the managing agent as a result of his failure to account for monies received or held by him.
Powers and duties of managing agent
Open ↗(1) Where a managing agent has been appointed under section 25, the managing agent shall have control over the moneys in the Building Maintenance Account or Building Maintenance Fund.
(2) Subject to the general direction of the Commissioner, the managing agent appointed shall perform the duties and exercise the powers with regard to the maintenance and management of the building as if he was acting as the developer or the Body.
(3) It shall be the duty of a managing agent to pay all moneys received by him in his capacity as managing agent into the Building Maintenance Account or Building Maintenance Fund of that building within two working days of receiving the moneys.
(4) As soon as practicable after his appointment, but in any case not later than one month after his appointment, a managing agent shall prepare and submit to the Commissioner a statement showing as at the date of his appointment—
(a) the moneys standing to the credit of the Building Maintenance Account or Building Maintenance Fund;
(b) the amounts due and owing by the purchasers which are due to be paid to the Building Maintenance Account or Building Maintenance Fund;
(c) any income derived from the common property of the building which is due to be paid to the Building Maintenance Account or Building Maintenance Fund;
(d) any sum accrued for the maintenance and management of the building, which is authorized to be paid out of the Building Maintenance Account or Building Maintenance Fund; and which remains unpaid.
(5) A managing agent who contravenes subsection (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Developer not to be relieved of his obligations to carry out repairs, etc.
Open ↗The appointment of a managing agent shall not relieve the developer of his obligation—
(a) towards the purchasers in his development area to carry out repairs to the common property, to make good any defect, shrinkage or other faults in the common property during the defects liability period; and
(b) to carry out repairs and varied and additional works to ensure that the development is constructed in accordance with the specifications and plans approved by the competent authority.
Termination of management agreement
Open ↗(1) Upon the termination of a management agreement entered into under subsection 25(2), the managing agent shall—
(a) not later than one month from such termination, prepare and submit to the Commissioner the unaudited accounts of the Building Maintenance Account or Building Maintenance Fund, as the case may be, and hand over
to the Commissioner a complete list of the assets and liabilities of the Building Maintenance Fund or Building Maintenance Account and records related to and necessary for the maintenance and management of the building; and
(b) not later than three months from such termination, submit to the Commissioner the audited accounts of the Building Maintenance Fund or Building Maintenance Account.
(2) Any person 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 one month or to both.
(3) In the event of the termination of the management agreement, the Commissioner may appoint another managing agent to maintain and manage the building for a period to be specified by the Commissioner.
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).
