Nancy (not her real name) and the other committee members were recently chosen as Joint Management Committee (JMC) members of the Joint Management Body (JMB) of a relatively new condominium in Selangor. Since this was their first time being in charge of a JMB, they were not sure how to feel. They were happy that their fellow owners gave them permission to run the JMB, but they didn’t know much about the Strata Management Act of 2013 (SMA) and its rules. During one of HBA’s Meet the Public Sessions, HBA volunteers taught Nancy about the Annual General Meeting (AGM), Extraordinary General Meeting (EGM), Quorum of meeting, etc. For everyone’s benefit, here is a summary of the Q&A.
Under the SMA, the executive committee of the JMB is called the JMC, while the executive committee of the Management Corporation (MC) is just called the Management Committee.
This year’s last AGM was in June. When should the next AGM happen, and what should be on the agenda?
AGMs should happen once a year and no more than 15 months should pass between them. This means that Nancy’s JMB must hold the next AGM by August 31, 2020, at the latest.
But if the AGM breaks this rule, it won’t affect how well it works. This means that if an AGM is held 15 months after the last AGM, the resolutions passed are still valid under the SMA.
At an AGM, people usually look at the audited annual accounts, vote for the JMC, and talk about other things related to the management and upkeep of the development’s common property.
What will happen if the deadline isn’t met?
Under the SMA, it is illegal to not hold an AGM before the deadline. In this case, the JMC and/or the members of the JMB have broken the law. If they are found guilty, they will have to pay a fine of up to RM50,000 or go to jail for up to three years, or both, unless they can show the Court that they tried to make sure they didn’t miss the deadline.
If the JMC doesn’t hold an AGM even though the last one was more than 15 months ago, people can complain to the local authority’s Commissioner of Buildings (COB), whose job it is to enforce the SMA.
What are some things we should do before an AGM?
The JMC must give each parcel owner at least 14 days’ notice of an AGM by doing one of the following:
a) By hand with a proper written acknowledgement, or
b) By registered mail sent to the last-known address of the person to be served’s business, parcel, or residence;
c) By putting the notice or order in a prominent place on the last known business, parcel, or home address of the person who needs to be served.
The notice of the AGM could be put up in a place that is easy to see.
The following must be included in every notice for an AGM:
a) Where, when, and what time the meeting will be;
b) Each proposed resolution that will be talked about at the meeting;
c) The right of each parcel owner to vote at the meeting in person or through a proxy.
A notice of an AGM must also include the following papers:
a) A copy of the minutes from the last annual general meeting;
b) A copy of the accounts that have been checked by an auditor, along with the auditor’s report on the JMB’s accounts;
c) Information about any other things that will be talked about at the meeting.
In the notice of the AGM, it is common to include a reminder that a parcel owner may appoint a proxy to attend and vote at the AGM, as long as the proxy appointment document is dropped off at the address of the JMB (which is usually the management office) at least 48 hours before the AGM.
If a parcel owner owes money to the JMB after the seventh day before the AGM, they cannot vote at the meeting. At least 48 hours before the meeting, the JMC will put a list of the names of the people who can vote on the notice board.
How can a parcel owner bring up a new motion to be discussed at the AGM if some owners are unhappy with how the condo is run?
According to paragraph 12 of the Second Schedule, SMA, no new fresh motion can be made unless every parcel owner is given 14 days’ notice of the motion. This is to make sure that no new motion can be brought up at a general meeting unless every parcel owner has been properly notified. This way, every parcel owner will be able to attend the general meeting to talk about the motion and vote on it if it affects his or her interests.
But according to paragraphs 12 and 13 of the Second Schedule of the SMA, any parcel owner can ask for a motion to be added to the agenda by writing to the management office of the JMB at least seven days before the meeting.
In this case, it would be best if another parcel owner backed the motion when it was brought to the JMB.
How many people do you need to hold an AGM?
The quorum is half of the people who are allowed to vote, whether they are there in person or through a proxy. Usually, it’s hard to get to the said quorum. So, the SMA takes a practical approach to avoid wasting money and time on meetings, especially for those who have set aside their valuable time to go. So, if a quorum isn’t there half an hour after the time set for the AGM, the SMA says that the people who are there and have the right to vote will make up a quorum and the AGM can go on.
Who will be in charge of the AGM?
Every AGM will have a chairman, who will be chosen from the people who have the right to vote and are present at the AGM. The person who is chosen to be the chairman will be in charge of the AGM until it is over. The head of the JMC doesn’t have to be in charge of the AGM.
How about an EGM? In what situations could an EGM happen?
An EGM is a general meeting of the JMB that is not an AGM. The JMC will call an EGM in one of the following three situations:
a) Upon a written request from the owners of parcels who together own at least 25% of the total number of share units;
b) When they get a written order from the COB to take care of whatever business the COB tells them to;
c) At any other time that the JMC thinks is right.
The parcel owners’ written request to hold an EGM must include the goals or motions of the meeting. The request must be signed by the petitioners and sent to the registered office of the JMB. So that it’s easier to get all of the signers’ signatures for EGM, the written request may not be in a single document. It might be made up of more than one document in the same style, each of which is signed by one or more requisitionists.
Is there a time limit for calling an EGM after getting a written request or direction from COB?
The EGM must happen as soon as possible, but no later than six weeks after receiving the written request or as told by the COB.
If, for example, the JMC gets a written request for an EGM but doesn’t hold it by the deadline, the COB can give written permission to any person to call an EGM.
All costs that the person who called the meeting had to pay for will be paid by the JMB to that person first. Then, all members of the JMC will owe money to the JMB for those costs.
How many people are needed for a meeting to be valid? How often should committee meetings take place?
The chairman will decide when and where the JMC will meet and how often they will meet. But the leader can’t let more than two months pass between meetings.
Also, the chairman must call a meeting of the committee if the COB or at least two members of the JMC ask for one.
At a committee meeting, a quorum is half of the committee members, rounded up. For instance, if there are nine people in a group, a quorum is five. If there are an even number of votes, the chairman will have a tie-breaking vote.
All general meetings of the JMB, the MC, and any subsidiary MCs will follow the steps above. In general, a general meeting must be announced 14 days before an ordinary resolution, 21 days before a special resolution, and 30 days before a comprehensive resolution.
Datuk Chang Kim Loong is the National House Buyers Association’s Honorary Secretary-General (HBA).
source: EdgeProp