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Strata Management Act 2013- Part 2

22. Joint management committee

(1) A joint management body shall elect a joint management committee which shall, subject to any restriction imposed or direction given by the joint management body at a general meeting, perform the joint management body's duties and conduct the joint management body's business on its behalf, and may for that purpose exercise any of the powers of the joint management body.

(2) The provisions of the Second Schedule shall apply to the joint management body and the joint management committee with modifications, including the following:

(a) a reference to the "management corporation" shall be construed as a reference to the joint management body; 

(b) a reference to the "management committee" shall be construed as a reference to the joint management committee; 

(c) a reference to the "proprietors" shall be construed as a reference to the parcel owners; 

(d) a reference to the "share units" shall be construed as a reference to the allocated share units; 

(e) the constitution of the joint management body and the joint management committee shall include the developer; 

(f) at any general meeting, including the first annual general meeting, and for the purpose of determining the quorum, the developer shall be considered as one person, regardless of the number of parcels in the development area which have not been sold; and 

(g) at any general meeting, including the first annual general meeting, and for the purpose of determining voting rights, the developer, in respect of the parcels in the development area which have not been sold, shall have the same voting rights as that of a purchaser. 

 Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/23.Joint management body to establish maintenance account
 

23. Joint management body to establish maintenance account

(1) A joint management body shall open and maintain a maintenance account with a bank or financial institution for the purposes specified in subsection (3).

(2) The maintenance account shall be administered and controlled by the joint management body and shall consist of--

(a) all balances of moneys in the maintenance account transferred by the developer to the joint management body under paragraph 15(1)(a)

(b) all or any part of the Charges imposed by or payable to the joint management body under this Act; 

(c) all moneys derived from the lease, rent or use of any property which may be lawfully charged by the joint management body; 

(d) all other moneys and property which may in any manner become payable to or vested in the joint management body in respect of any matter incidental to its functions and powers; and 

(e) all other moneys lawfully received by the joint management body, including interest, donation and trust. 

(3) The maintenance account referred to in subsection (1) shall be used solely for the purpose of meeting the actual or expected general or regular expenditure necessary in respect of the following matters:

(a) maintaining the common property in good condition on a day-to-day basis; 

(b) paying for the expenses incurred in providing cleaning services for the common property, security services and amenities for the occupiers of the building; 

(c) paying any premiums for the insurance effected under this Act or any other insurance approved by a special resolution in a general meeting; 

(d) complying with any notice or order given or made by the local authority in respect of periodical inspection of any building in the development area in the manner as specified in the Street, Drainage and Building Act 1974; 

(e) minor painting works on the premises of the common property; 

(f) carrying out inspection of all electrical wiring systems of the common property and replacing or repairing any faulty wiring systems, if any; 

(g) carrying out inspection, maintenance and repair of the main water tanks; 

(h) paying rent and rates, if any; 

(i) paying any fee incurred for the auditing of the accounts required to be maintained by the joint management body under this Act; 

(j) paying all charges reasonably incurred for the administration of the accounts required to be maintained by the joint management body under this Act as may be determined by the Commissioner; 

(k) paying the remuneration or fees for the managing agent appointed under Part VI; 

(l) paying for the allowances and other expenses of the members of the joint management body and members of the joint management committee according to such rates as may be approved by the Commissioner; 

(m) paying any expenses, costs or expenditure in relation to the procurement of services, including the engagement of consultants, legal fees or costs and other fees and costs, properly incurred or accepted by the joint management body in the performance of its functions and the exercise of its power under this Act; or 

(n) meeting other expenses of a general or regular nature relating to the maintenance and management of the building or land intended for subdivision into parcels and the common property. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/24.Joint management body to establish sinking fund account

24. Joint management body to establish sinking fund account

(1) A joint management body shall open and maintain a sinking fund account with a bank or financial institution, into which shall be deposited all balances of moneys in the sinking fund account transferred by the developer to the joint management body under paragraph 15(1)(a), and all contributions to the sinking fund paid by the parcel owners to the joint management body.

(2) The sinking fund account shall be used solely for the purposes of meeting the actual or expected capital expenditure in respect of the following matters:

(a) the painting or repainting of any part of the common property; 

(b) the acquisition of any movable property for use in relation to the common property; 

(c) the renewal or replacement of any fixture or fitting comprised in any common property; 

(d) the upgrading and refurbishment of the common property; or 

(e) any other capital expenditure as the joint management body deems necessary. 

 Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/25.Parcel owners to pay Charges, and contribution to the sinking fund, to the joint management body

 

25. Parcel owners to pay Charges, and contribution to the sinking fund, to the joint management body

(1) Each purchaser shall pay the Charges, and contribution to the sinking fund, in respect of his parcel to the joint management body for the maintenance and management of the buildings or lands intended for subdivision into parcels and the common property in a development area.

(2) The developer shall pay the Charges, and contribution to the sinking fund, to the joint management body in respect of those parcels in the development area which have not been sold, being a sum equivalent to the Charges, and contribution to the sinking fund, payable by the purchasers to the joint management body had the parcels been sold.

(3) The amount of the Charges to be paid under subsections (1) and (2) shall be determined by the joint management body from time to time in proportion to the allocated share units of each parcel.

(4) The amount of contribution to the sinking fund to be paid under subsections (1) and (2) shall be a sum equivalent to ten per cent of the Charges unless otherwise determined by the joint management body from time to time at a general meeting which shall not be less than ten percent of the Charges.

(5) A parcel owner shall, within fourteen days of receiving a notice from the joint management body, pay the Charges, and contribution to the sinking fund, to the joint management body.

(6) If any sum remains unpaid by the parcel owner in respect of his parcel at the expiry of the period of fourteen days specified in subsection (5)--

(a) the joint management body may recover the sum in the manner set out in section 34; and 

(b) the parcel owner shall pay interest at the rate to be determined by the joint management body under paragraph 19(1)(d) but such interest shall not exceed ten per cent per annum. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/26.Duties of joint management body in relation to accounts

26. Duties of joint management body in relation to accounts

(1) A joint management body shall in respect of the maintenance account and the sinking fund account--

(a) cause to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from its first annual general meeting; 

(b) appoint an approved company auditor to carry out the audit of the accounts annually and the accounts shall be-- 

(i) in the case where moneys are to be transferred under paragraph 27(2)(a), audited up to the date of the actual transfer; and 

(ii) in the case where the accounts are to be presented at the first annual general meeting of the management corporation, audited up to a date not earlier than three months before the meeting;

(c) file with the Commissioner a certified true copy of the audited accounts together with the auditor's report within fourteen days of the accounts being audited; and 

(d) permit the Commissioner or any person authorized by the Commissioner in writing to act on its behalf full and free access to the accounts and records of accounts and to make copies or extracts of those accounts and records of accounts. 

(2) Notwithstanding subsection (1), the Commissioner shall have, at any time, the right to appoint an approved company auditor to investigate the accounts and records of accounts specified in subsection (1), and the joint management body shall pay all the expenses incurred for that purpose.

(3) The joint management body shall furnish to the Commissioner or any public authority such returns, reports, accounts and information with respect to its activities and finances as the Commissioner may, from time to time, require or direct.

(4) The returns, reports, accounts and information referred to in subsection (3) shall be in such form as the Commissioner may, from time to time, specify.

(5) If the joint management body fails to comply with subsection (1), (2), (3) or (4), every member of the joint management committee commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(6) In proceedings against the member of the joint management committee for an offence under subsection (5), it is a defence if the member proves that--

(a) the offence was committed without his knowledge, consent or connivance; and 

(b) he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence. 

 Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/27.Dissolution of joint management body

 

27. Dissolution of joint management body

(1) A joint management body shall dissolve three months from the date of the first annual general meeting of the management corporation for the development area.

(2) The joint management body shall, not more than one month from the date of the first annual general meeting of the management corporation--

(a) transfer all balances of moneys in the maintenance account and in the sinking fund account, after payment of all the expenditure which have been properly charged to the accounts, to the management corporation; 

(b) hand over to the management corporation-- 

(i) any additional by-laws; 

(ii) the audited accounts of the maintenance account and the sinking fund account or, if such accounts have not been audited, the unaudited accounts; 

(iii) all the assets and liabilities of the joint management body; 

(iv) all the documents delivered by the developer to the joint management body under subsection 15(3); and 

(v) all records relating to and necessary for the maintenance and management of the building or land intended for subdivision into parcels and the common property. 

(3) If only unaudited accounts have been handed over under subparagraph (2)(b)(ii), the joint management body shall hand over to the management corporation the audited accounts of the joint management body not more than three months from the date of the first annual general meeting of the management corporation.

(4) If the joint management body fails to comply with subsection (2) or (3), every member of the joint management committee commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(5) In proceedings against the member of the joint management committee for an offence under subsection (4), it is a defence if the member proves that--

(a) the offence was committed without his knowledge, consent or connivance; and 

(b) he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/28.Balances not transferred shall vest in management corporation

28. Balances not transferred shall vest in management corporation

(1) If any balance of moneys in the maintenance account and in the sinking fund account has not been transferred by the joint management body under paragraph 27(2)(a), the moneys shall vest in the management corporation on the date of the expiry of the period specified in subsection 27(2).

(2) Any right, power or remedy granted to, or any liability imposed on, the joint management body under this Part in respect of the development area, including Charges, contribution to the sinking fund, and any other assets of maintenance account and the sinking fund account, shall vest in the management corporation on the date of the expiry of the period specified in subsection 27(2), and the management corporation shall have the same right, power, remedy or liability as if it had at all times been a right, power, remedy or liability of the management corporation, including those rights in respect of any legal proceedings or applications to any authority by or against the joint management body pending immediately before the date of the expiry of the period specified in subsection 27(2).

(3) Any judgment or award of any arbitral or other tribunal obtained by the joint management body in respect of the development area, including the Charges, contribution to the sinking fund and any other assets of the maintenance account and the sinking fund account, and not fully satisfied before the expiry of the period specified in subsection 27(2), shall be enforceable by the management corporation.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/29.Duty of developer in respect of Charges for building or land intended for subdivision into parcels completed before commencement of this Act

Part IV STRATA MANAGEMENT BEFORE EXISTENCE OF MANAGEMENT CORPORATION

Chapter 4 Miscellaneous provisions applicable to this Part

29. Duty of developer in respect of Charges for building or land intended for subdivision into parcels completed before commencement of this Act

(1) Any developer of a development area which has been completed before the commencement of this Act, but for which a management corporation has not been established shall, not later than six months following the establishment of the joint management body, submit to the Commissioner an account audited by an approved company auditor of all moneys collected and expended for the purpose of the maintenance and management of the common property and the sinking fund, prior to the establishment of the joint management body.

(2) The Commissioner may, upon request by the developer of a development area, extend the period stated in subsection (1) for another period not exceeding three months.

(3) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/30.Register of parcel owners

30. Register of parcel owners

(1) A developer, during the developer's management period, or the joint management body, as the case may be, shall prepare and 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 units assigned to each parcel; 

(b) the floor area of the parcel referred to in paragraph (a)

(c) the name and address of every parcel owner and if the parcel owner is not a resident of Malaysia, the address in Malaysia at which notices may be served on the parcel owner; and 

(d) the name and address of the solicitor acting for the parcel owner in the sale and purchase of the parcel, if any. 

(2) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(3) If a joint management body fails to comply with subsection (1), every member of the joint management committee commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(4) In proceedings against the member of the joint management committee for an offence under subsection (3), it is a defence if the member proves that--

(a) the offence was committed without his knowledge, consent or connivance; and 

(b) he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence. 

 Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/31.Right of parcel owner or prospective purchaser

 

31. Right of parcel owner or prospective purchaser

Subject to a payment of a fee not exceeding fifty ringgit, on application by or on behalf of a person who is a parcel owner, or by or on behalf of a person who is a prospective purchaser, the developer or the joint management body, as the case may be, shall issue to that person a certificate certifying--

(a) the amount of the Charges, and contribution to the sinking fund, payable by a parcel owner; 

(b) the time and manner of payment of the amount of such Charges, and contributions to the sinking fund; 

(c) the amount, if any, of arrears of such Charges, and contributions to the sinking fund, in respect of the parcel; 

(d) the sum standing to the credit of the maintenance account and the sum in the account that has been committed or reserved for expenses already incurred by the developer or the joint management body, as the case may be; 

(e) the sum standing to the credit of the sinking fund account and the sum in the account that has been committed or reserved for expenses already incurred by the developer or the joint management body, as the case may be; and 

(f) the nature of the repairs and estimated expenditure, if any, where the developer or the joint management body, as the case may be, 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 parcel owner of the parcel under any provision of this Act. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/32.By-laws for building or land intended for subdivision into parcels

32. By-laws for building or land intended for subdivision into parcels

(1) Any by-laws prescribed by the regulations made under section 150 shall have effect in relation to every building or land intended for subdivision into parcels and the common property.

(2) A developer during the developer's management period may make additional by-laws or make amendments to such additional by-laws, not inconsistent with the by-laws prescribed by the regulations made under section 150, with the approval of the Commissioner.

(3) A joint management body may, by a special resolution, make additional by-laws or make amendments to such additional by-laws, not inconsistent with the by-laws prescribed by regulations made under section 150, for regulating the control, management, administration, use and enjoyment of the building or land intended for subdivision into parcels and the common property, including all or any of the following matters:

(a) safety and security measures; 

(b) details of any common property of which the use is restricted; 

(c) the keeping of pets; 

(d) parking; 

(e) floor coverings; 

(f) refuse control; 

(g) behaviour; 

(h) architectural and landscaping guidelines to be observed by all parcel owners; and 

(i) imposition of fine not exceeding two hundred ringgit against any parcel owner, occupant or invitee who is in breach of any of the by-laws. 

(4) The additional by-laws made under subsection (2) or (3) shall bind the developer or the joint management body, as the case may be, and the parcel owners, and any chargee or assignee, lessee, tenant or occupier of a parcel to the same extent as if the additional by-laws--

(a) had been signed or sealed by the developer or the joint management body, as the case may be, and each parcel owner and each such chargee or assignee, lessee, tenant or occupier, respectively; and 

(b) contain mutual covenants to observe, comply and perform all the provisions of those additional by-laws. 

(5) The developer or the joint management body, as the case may be, shall--

(a) keep a record of the additional by-laws in force from time to time; 

(b) on receipt of an application in writing made by a parcel owner or a person duly authorized to apply on behalf of a parcel owner for a copy of the additional by-laws in force, supply to such parcel owner or person duly authorized by him, at a reasonable cost, a copy of the additional by-laws; and 

(c) on the application of any person who satisfies the developer or the joint management body, as the case may be, that he has a proper interest in so applying, make such additional by-laws available for inspection. 

(6) A copy of any additional by-laws made by the developer or the joint management body, as the case may be, and any amendment of any such additional by-laws for the time being in force, certified as a true copy under the seal of the developer or the joint management body, shall be filed by the developer or the joint management body with the Commissioner--

(a) in the case where such additional by-laws are made by the developer, within fourteen days from the date of the approval of the Commissioner; and 

(b) in the case where such additional by-laws are made by the joint management body, within fourteen days from the date of the passing of the special resolution by the joint management body approving the additional by-laws. 

(7) The developer or the joint management body, as the case may be, or any parcel owner shall be entitled to apply to a court of competent jurisdiction or the Tribunal--

(a) for an order to enforce the performance of or restrain the breach of, any by-laws by; or 

(b) to recover damages for any loss or injury to any person or property arising out of the breach of any by-laws from, any person bound to comply with the by-laws.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/33.Recovery of sum as a debt due to joint management body

33. Recovery of sum as a debt due to joint management body

(1) The payment of any amount of money lawfully incurred by the joint management body in the course of the exercise of any of its powers or functions or the carrying out of its duties or obligations shall by virtue of this section be guaranteed by the parcel owners for the time being constituting the joint management body.

(2) Each parcel owner shall be liable under the guarantee referred to in subsection (1) only for such proportion of the money so incurred as the allocated share units of his parcel bear to the aggregate share units.

(3) Where any parcel owner has not discharged or fully discharged his liability for the purpose of subsection (1), the joint management body shall be entitled to recover from the parcel owner in a court of competent jurisdiction or in the Tribunal as a debt due to it.

(4) Where for reasons of insufficiency of funds to meet the sum guaranteed under subsection (1), the joint management body may, at an annual general meeting or at an extraordinary general meeting, determine the amount to be contributed by each parcel owner and decide any other issue or matter relating to the settlement of the said sum.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/34.Procedure on recovery of sums due

34. Procedure on recovery of sums due

(1) Where a sum becomes recoverable by the developer from the purchaser in respect of his parcel by virtue of subsection 12(5), or by the joint management body from the parcel owner in respect of his parcel by virtue of subsection 25(6) or 33(3), the developer or the joint management body may serve on the purchaser or the parcel owner, as the case may be, a written notice demanding payment of the sum due within the period as may be specified in the notice which shall not be less than fourteen days from the date of service of the notice.

(2) If any sum remains unpaid by the purchaser or parcel owner at the end of the period specified in the notice under subsection (1), the developer or the joint management body, as the case may be, may file a summons or claim in a court of competent jurisdiction or in the Tribunal for the recovery of the said sum or as an alternative to recovery under this section, resort to recovery under section 35.

(3) Any purchaser or parcel owner who, without reasonable excuse, fails to comply with the notice referred to in subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, to a further fine not exceeding fifty ringgit for every day or part thereof during which the offence continues after conviction.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/35.Recovery of sums by attachment of movable property

35. Recovery of sums by attachment of movable property

(1) The Commissioner may, upon sworn application in writing made by the developer or any member of the joint management committee, issue a warrant of attachment in Form A of the Third Schedule authorizing the attachment of any movable property belonging to the defaulting parcel owner which may be found in the building or elsewhere in the State.

(2) The warrant of attachment under subsection (1) shall be executed by the developer or a member of the joint management committee or by a person specially employed by the developer or the joint management body to execute such warrant, in the presence of the Commissioner or an officer from the office of the Commissioner.

(3) If the developer or the member of the joint management committee or the person referred to in subsection (2) encounters difficulties in executing the warrant, such developer, member or person may seek the assistance of the Commissioner, and in providing such assistance, the Commissioner may request for the assistance of a police officer not below the rank of Inspector.

(4) A person executing the warrant--

(a) may, in the daytime, effect forcible entry into any house or building or any part of the house or building for the purpose of executing the warrant; and 

(b) shall, immediately after attachment, make an inventory of the property attached under the warrant and serve a notice in Form B of the Third Schedule on the person who, at the time of attachment, was or appeared to be in possession of the property. 

(5) Any tenant, subtenant, or occupier who, in order to avoid the attachment or sale of the movable property for non-payment of any sum due to the developer or the joint management body by the parcel owner, pays such sum may--

(a) in the absence of any written agreement to the contrary, deduct the amount so paid by him from the rent due or to become due by him to the parcel owner; and 

(b) retain possession of the property until such amount so paid by him has been fully reimbursed to him whether by deduction from the rent or otherwise. 

(6) The receipt issued by the developer or the joint management body for any amount so paid by any such tenant, subtenant or occupier under subsection (5) shall be deemed a discharge in full for the like amount of rent.

(7) If any person whose property is attached disputes the legality of the attachment, he may, within fourteen days of the date of attachment, apply to the Magistrate's Court having jurisdiction in the place of attachment for an order for the release of the property, and the Magistrate's Court, after making such enquiry as may be necessary, shall grant or refuse to grant the order.

(8) If the sum due is not paid within fourteen days from the date of attachment, the property attached or such portion of the property attached as may be sufficient to realize the sum shall be sold by auction conducted by the developer or the joint management body under the supervision of the Commissioner unless within that period an application is made under subsection (7), in which case, the property shall be held pending the decision of the Magistrate's Court and shall then be dealt with as the Magistrate's Court may order.

(9) If the Magistrate's Court refuses to grant an order for the release of the property, and that decision of the Magistrate's Court is reached within fourteen days from the date of attachment, the property shall not be sold before the expiry of that period.

(10) Notwithstanding subsections (8) and (9), if the property is of a perishable nature, it may be sold at once, and in that case, the proceeds of sale shall be held pending the decision of the Magistrate's Court and shall then be dealt with as the Magistrate's Court may order.

(11) In any other case, the proceeds of sale shall be applied in satisfaction of the sum due together with the costs of the attachment and sale, and any surplus and any property not sold shall be paid or returned to the person who, at the time of attachment, was or appeared to be in possession of the property.

(12) The costs of attachment shall include the expenses of the maintenance of livestock and the custody of movable property.

(13) Where any property is sold by virtue of subsection (10) before the expiry of fourteen days from the date of attachment, the reference in subsection (7) to "an order for the release of the property" shall be construed as a reference to an order for the release of the proceeds of the sale of the property.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/36.Moneys not required for immediate use

36. Moneys not required for immediate use

All moneys in the accounts required to be opened and maintained under this Part which exceeds five thousand ringgit and which are not required for immediate use, shall be placed or deposited by the developer or the joint management body, as the case may be, into an income-bearing deposit account with a bank or financial institution.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/37.References to repealed Act and savings provision

Part IV STRATA MANAGEMENT BEFORE EXISTENCE OF MANAGEMENT CORPORATION

Chapter 5 Transitional and saving provisions due to the repeal of the Building and Common Property (Maintenance and Management) Act 2007

37. References to repealed Act and savings provision

(1) All references to the repealed Act in any written law or document shall, when this Act comes into operation, be construed as references to this Act.

(2) Nothing in this Act shall affect the past operation of, or anything done under the repealed Act before the date of coming into operation of this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/38.Existing body and committee

38. Existing body and committee

A Joint Management Body established or a Joint Management Committee elected under the repealed Act shall be deemed to have been established or elected under this Act except that after the commencement of this Act the provisions of this Act shall apply to such a Body or Committee.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/39.Existing managing agent

39. Existing managing agent

Any person who, immediately before the commencement of this Act, is a managing agent appointed by the Commissioner of Buildings under section 25 of the repealed Act shall continue as such managing agent as if he were appointed under section 86 of this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/40.Existing accounts or funds

40. Existing accounts or funds

Every accounts or funds established by the developer or the Joint Management Body under the repealed Act before the commencement of this Act shall continue and be deemed to be established under this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/41.Incumbent Commissioner of Buildings and other officers

41. Incumbent Commissioner of Buildings and other officers

A person who, immediately before the commencement of this Act, is--

(a) the Commissioner of Buildings; or 

(b) an officer appointed under subsection 3(1) of the repealed Act, 

shall continue to hold such office as if he were appointed under subsection 4(1) of this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/42.Existing notices, orders, etc.

42. Existing notices, orders, etc.

(1) Any notice, order, action, direction or other document prepared, issued or made by the Commissioner under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, continue and be deemed to have been prepared, issued or made under the corresponding provisions of this Act.

(2) Any decision made by the Commissioner under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, continue and be deemed to have been made under the corresponding provisions of this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/43.Pending applications, etc.

 

43. Pending applications, etc.

(1) Any application or other document filed for approval under the repealed Act before the commencement of this Act and was not approved before that date shall, where applicable, be deemed to be an application or a document filed for approval under the corresponding provisions of this Act.

(2) Where anything has been commenced by or on behalf of the Commissioner before the commencement of this Act, such thing may be carried out by or under the authority of the Commissioner under the corresponding provisions of this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/44.Pending appeals

44. Pending appeals

Where an appeal has been made to the State Authority under section 41 of the repealed Act and the appeal has not been dealt with or disposed of immediately before the commencement of this Act, the appeal may be dealt with in accordance with that repealed section as if this Act had not been enacted.

 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/45.Existing regulations

45. Existing regulations

Any regulations made under the repealed Act and in force immediately before the commencement of this Act shall, in so far as it is not inconsistent with the provisions of this Act, continue to be in force as if the regulations were made under this Act until they are revoked or repealed by the regulations made under this Act.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/46.Application of this Part

Part V STRATA MANAGEMENT AFTER EXISTENCE OF MANAGEMENT CORPORATION

Chapter 1 General

46. Application of this Part

(1) This Part shall apply to a development area, where before or after the commencement of this Act--

(a) vacant possession of a parcel in a building or land intended for subdivision into parcels or in a subdivided building or land has been delivered by the developer to a purchaser; and 

(b) the management corporation has come into existence under the provisions of the Strata Titles Act 1985. 

(2) In this Part, unless the context otherwise requires--

"developer"

includes the original proprietor of the lot of land relating to the development area;

"preliminary management period"

means the period commencing from the date of delivery of vacant possession of a parcel to a purchaser by the developer until one month after the first annual general meeting of the management corporation;

"initial period",

in relation to a management corporation, means the period commencing on the day on which the management corporation comes into existence and ending on the day on which there are proprietors, excluding the original proprietor of the lot of land or the developer who is registered as the proprietor of a parcel or parcels or a provisional block or blocks, the sum of whose share units is at least one-quarter of the aggregate share units.

 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/47.Application

Part V STRATA MANAGEMENT AFTER EXISTENCE OF MANAGEMENT CORPORATION

Chapter 2 Management by developer before first annual general meeting of management corporation

47. Application

This Chapter shall apply to a development area specified in subsection 46(1) where no joint management body is established under subsection 17(1) for the development area.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/48.Duties and powers of developer to maintain and manage

48. Duties and powers of developer to maintain and manage

(1) A developer shall, during the preliminary management period and subject to the provisions of this Act, be responsible to maintain and manage properly the subdivided building or land, and the common property.

(2) The developer shall exercise the powers and perform the duties of the management committee of the management corporation from the time the management corporation comes into existence until the expiry of the preliminary management period.

(3) During the preliminary management period, the developer shall ensure that a separate and distinct area is set aside out of the common property of the development area for the sole purpose of an administration office for the carrying out of duties of the developer under this Act.

(4) Any developer who fails to comply with subsection (1) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/49.Restrictions during preliminary management period

49. Restrictions during preliminary management period

(1) Notwithstanding any other provisions of this Act, the developer shall not, during the preliminary management period--

(a) borrow moneys or give securities; or 

(b) enter into any contract relating to the maintenance and management of any subdivided building or land and the common property in the development area for any period extending beyond the expiration of the preliminary management period. 

(2) Without prejudice to any other remedy available against the developer, if any developer fails to comply with subsection (1), the developer shall be liable for any loss or damage suffered by the management corporation or any proprietor as a result of the contravention, and the management corporation or any proprietor may recover from the developer, as damages for breach of a statutory duty, any loss suffered by it or him in consequence of such contravention.

(3) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/50.Developer to establish maintenance account in the name of management corporation

50. Developer to establish maintenance account in the name of management corporation

(1) A developer shall open and maintain a maintenance account in respect of the development area in the name of the management corporation with a bank or financial institution--

(a) if vacant possession of a parcel was delivered before the commencement of this Act, on the date of the commencement of this Act; 

(b) if vacant possession of a parcel is delivered after the commencement of this Act and after the management corporation came into existence, at any time before the delivery of vacant possession; or 

(c) if vacant possession of a parcel is delivered after the commencement of this Act and before the management corporation comes into existence and if no joint management body is established under subsection 17(1), within fourteen days from the date the management corporation comes into existence, but in any case, before the Charges are collected from the proprietors of any parcel in the development area.

(2) The maintenance account shall consist of--

(a) all Charges paid by the proprietors to the management corporation; 

(b) all or any part of the Charges imposed by or payable to the management corporation under this Act; 

(c) all moneys derived from the sale, disposal, lease or hire of, or any other dealing with any property, mortgages, charges or debentures vested in or acquired by the management corporation; 

(d) all other moneys and property which may in any manner become payable to or vested in the management corporation in respect of any matter incidental to its functions and powers; and 

(e) all other moneys lawfully received by the management corporation, including interest, donation and trust. 

(3) The maintenance account shall be used solely for the purpose of meeting the actual or expected general or regular expenditure necessary in respect of the following matters:

(a) maintaining the common property in good condition on a day-to-day basis; 

(b) paying for the expenses incurred in providing cleaning services for the common property, security services and amenities for the occupiers of the building; 

(c) paying any premiums for the insurance effected under this Act or any other insurance approved by a special resolution in a general meeting; 

(d) complying with any notice or order given or made by the local authority in respect of periodical inspection of any building in the development area in the manner as specified in the Street, Drainage and Building Act 1974; 

(e) minor painting on the premises of the common property; 

(f) carrying out inspection of all electrical wiring systems of the common property and replacing or repairing any faulty wiring system, if any; 

(g) carrying out inspection, maintenance and repair of the main water tanks; 

(h) paying rent and rates, if any; 

(i) paying any fee incurred for the auditing of the accounts required to be maintained by the management corporation under this Act; 

(j) paying all charges reasonably incurred for the administration of the accounts required to be maintained by the management corporation under this Act as may be determined by the Commissioner; 

(k) paying the remuneration or fees for the managing agent appointed under Part VI; 

(l) paying for the allowances and other expenses of the members of the management committee according to such rates as may be approved by the Commissioner; 

(m) paying any expenses, costs or expenditure in relation to the procurement of services, including the engagement of consultants, legal fees or costs and other fees and costs, properly incurred or accepted by the management corporation in the performance of its functions and the exercise of its power under this Act; or 

(n) meeting other expenses of a general or regular nature relating to the maintenance and management of the building or land intended for subdivision into parcels and the common property. 

(4) Any developer who fails to comply with subsection (1) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/51.Developer to establish sinking fund account in the name of management corporation

51. Developer to establish sinking fund account in the name of management corporation

(1) At the same time when the developer is required to open and maintain the maintenance account under subsection 50(1), the developer shall open and maintain a sinking fund account in the name of the management corporation, with a bank or financial institution, into which shall be deposited the contribution to the sinking fund paid by the proprietors.

(2) The sinking fund account shall be used solely for the purposes of meeting the actual or expected capital expenditure necessary in respect of the following matters:

(a) the painting or repainting any part of the common property which is a building or other structure; 

(b) the acquisition of any movable property for use in relation to the common property; 

(c) the renewal or replacement of any fixtures or fittings comprised in any common property and any movable property vested in the management corporation; 

(d) the upgrading and refurbishment of the common property; and 

(e) any other capital expenditure as the management corporation deems necessary. 

(3) Any developer who fails to comply with subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/52.Proprietors to pay Charges, and contribution to the sinking fund

52. Proprietors to pay Charges, and contribution to the sinking fund

(1) Each proprietor shall pay the Charges, and contribution to the sinking fund, to the management corporation for the maintenance and management of the subdivided building or land and the common property in a development area.

(2) During the preliminary management period, the amount of the Charges to be paid under subsection (1) shall be determined by the developer in proportion to the share units assigned to each parcel.

(3) The amount of the contribution to the sinking fund to be paid under subsection (1) shall be a sum equivalent to ten per cent of the Charges.

(4) The proprietor shall, within fourteen days of receiving a notice from developer, pay the Charges, and contribution to the sinking fund, to the management corporation and if any sum remains unpaid by the proprietor at the expiry of the period of fourteen days, the developer may in the name of the management corporation recover the sum in the manner set out in section 78.

(5) If any sum remains unpaid by the proprietor at the expiry of the period of fourteen days specified in subsection (4), the proprietor shall pay interest at the rate of ten per cent per annum on a daily basis.

(6) Any proprietor who is not satisfied with the sums determined by the developer under subsection (2) or (3) may apply to the Commissioner for a review and the Commissioner may--

(a) determine the sum to be paid as the Charges, or contribution to the sinking fund; or 

(b) instruct the developer to appoint, at the developer's own cost and expense, a registered property manager to recommend the sum payable as Charges, or contribution to the sinking fund, and submit a copy of the registered property manager's report to the Commissioner. 

(7) Upon receiving the report under paragraph (6)(b), the Commissioner shall determine the sum payable as he thinks just and reasonable, and any sum so determined by the Commissioner shall be deemed to be the sum payable as the Charges, or contribution to the sinking fund.

(8) For the purposes of this section, "proprietor" includes--

(a) the person for the time being receiving the rent of the parcel, whether as an agent or a trustee or a receiver, and who would receive the same if the parcel were let to a tenant; 

(b) a purchaser to be duly registered as a proprietor; or 

(c) a developer in respect of those parcels in the development area which have not been sold. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/53.Prohibition on collection of moneys for maintenance from proprietors

53. Prohibition on collection of moneys for maintenance from proprietors

(1) No person shall at any time collect any Charges, or contribution to the sinking fund, from any proprietor for the maintenance and management of any subdivided building or land and the common property unless--

(a) a maintenance account and a sinking fund account have been opened in the name of the management corporation; and 

(b) vacant possession of the parcel has been delivered to the proprietor. 

(2) Notwithstanding subsection (1), any developer of a development area which has been completed on or before the commencement of this Act and has, immediately before that date, been collecting moneys from the proprietors for the maintenance and management of any subdivided building or land and the common property comprised in the development area, may continue to do so until the expiry of the preliminary management period, provided that all moneys shall be collected and dealt with by the developer in accordance with this Act.

(3) Any person who fails to comply with subsection (1) or (2) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/54.Duties of developer in relation to accounts

54. Duties of developer in relation to accounts

(1) During the preliminary management period, a developer shall, in respect of the maintenance account and the sinking fund account--

(a) cause to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from the commencement of the preliminary management period; 

(b) appoint an approved company auditor to carry out the audit of the accounts annually and the accounts shall be audited-- 

(i) in the case where control of all balances of moneys in the maintenance account and in the sinking fund account is to be transferred under paragraph 55(1)(a), up to the date of the actual transfer of control; or 

(ii) in the case where the accounts are to be presented at the first annual general meeting of the management corporation, up to a date not earlier than three months before the meeting; 

(c) file with the Commissioner a certified true copy of the audited accounts together with the auditor's report within fourteen days of the accounts being audited; and 

(d) permit the Commissioner or any person authorized by the Commissioner in writing to act on its behalf full and free access to the accounts and records of accounts and to make copies or extracts of those accounts and records of accounts. 

(2) Notwithstanding subsection (1), the Commissioner shall have, at any time, the right to appoint an approved company auditor to investigate the accounts and records of accounts specified in subsection (1), and the developer shall pay all the expenses incurred for that purpose.

(3) The developer shall furnish to the Commissioner or any public authority such returns, reports, accounts and information with respect to the activities and finances of the respective accounts, as the Commissioner may, from time to time, require or direct.

(4) The returns, reports, accounts and information referred to in subsection (3) shall be in such form as the Commissioner may, from time to time, specify.

(5) Any developer who fails to comply with subsection (1), (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/55.Handing over of control to management corporation

55. Handing over of control to management corporation

(1) A developer shall, not later than the date of the expiry of the preliminary management period--

(a) transfer the control of all balances of moneys in the maintenance account and in the sinking fund account to the management committee of the management corporation; and 

(b) hand over to the management committee of the management corporation-- 

(i) the administration office set up by the developer under subsection 48(3); 

(ii) the audited accounts of the maintenance account and the sinking fund account or, if such accounts have not been audited, the unaudited accounts; 

(iii) all the assets of the management corporation; and 

(iv) all records related to and necessary for the maintenance and management of the subdivided building or land and the common property of the development area. 

(2) If only unaudited accounts have been handed over under subparagraph (1)(b)(ii), the developer shall hand over to the management committee of the management corporation the audited accounts up to the date of transfer of control of all balances of moneys in the maintenance account and sinking fund account not later than three months after the expiry of the preliminary management period.

(3) Without prejudice to the generality of subparagraph (1)(b)(iv), the developer shall deliver to the management committee of the management corporation copies of all the following documents:

(a) all approved plans for the subdivided buildings or land relating to the development area; 

(b) any document in the developer's possession that indicates, as far as practicable, the actual location of any pipe, wire, cable, chute, duct or other facility for the passage or provision of systems or services, if the developer has reason to believe that the pipe, wire, cable, chute, duct or other facility is not located as shown on an approved plan or an approved amended plan; 

(c) all contracts entered into by the developer in respect of the maintenance or management of any subdivided building or land and the common property comprised in the development area; 

(d) a copy of the schedule of parcels or the amended schedule of parcels filed with the Commissioner under subsection 6(1) or (2), if applicable, or the certified strata plan filed by the Director of Survey under the provisions of the Strata Titles Act 1985; 

(e) the names and addresses of such contractors, subcontractors and persons who supplied labour or materials to the development area during construction of any subdivided building or land and the common property comprised in the development area; and 

(f) all warranties, manuals, schematic drawings, operating instructions, service guides, manufacturer's documentation and other similar information in respect of the construction, installation, operation, maintenance, repair and servicing of any common property, including any warranty or information provided to the developer by any person referred to in paragraph (e)

(4) Any developer who fails to comply with subsection (1), (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, to a further fine not exceeding five thousand ringgit for every day or part thereof during which the offence continues after conviction.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/56.Management committee

Part V STRATA MANAGEMENT AFTER EXISTENCE OF MANAGEMENT CORPORATION

Chapter 3 Management after first annual general meeting of the management corporation

56. Management committee

(1) Subject to subsection 63(4), the management corporation shall elect a management committee which, subject to any restriction imposed or direction given by the management corporation at a general meeting, shall perform the management corporation's duties and conduct the management corporation's business on its behalf, and may for that purpose exercise any of the management corporation's powers.

(2) The provisions of the Second Schedule shall apply to the management corporation and the management committee.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/57.Duty of developer to convene first annual general meeting

57. Duty of developer to convene first annual general meeting

(1) It shall be the duty of the developer to convene the first annual general meeting of the management corporation within one month after the expiration of the initial period.

(2) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(3) The developer shall give written notice of the first annual general meeting of the management corporation to all proprietors not less than fourteen days before the meeting, and a copy of such written notice shall be displayed at a conspicuous part of the development area.

(4) The developer shall prepare and place before the first annual general meeting of the management corporation for consideration an annual budget that sufficiently sets out the expected and estimated expenditure required to properly maintain and manage the subdivided buildings or lands and the common property which shall be for a period of twelve months starting on the first day of the month following the date of the first annual general meeting.

(5) If the developer fails to convene the first annual general meeting within the period specified in subsection (1), the Commissioner may, on application by a proprietor, appoint a person to convene the first annual general meeting of the management corporation within such time as may be specified by the Commissioner, and the developer shall pay all the expenses incurred for that purpose.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/58.First annual general meeting of management corporation

58. First annual general meeting of management corporation

The agenda for the first annual general meeting of a management corporation shall include the following matters:

(a) to determine the number of members of the management committee and to elect the management committee where there are more than three proprietors; 

(b) to consider the budget prepared by the developer under subsection 57(4); 

(c) to decide whether to confirm or vary any amount determined as the Charges, or contribution to the sinking fund; 

(d) to determine the rate of interest payable by a proprietor in respect of late payment charges; 

(e) to consider the audited accounts of the management corporation specified in subparagraph 55(1)(b)(ii); 

(f) to decide whether to confirm, vary or extend the insurances effected by the developer for the management corporation under this Act; 

(g) to make additional by-laws; and 

(h) to consider any matter connected with the maintenance and management of the common property of the subdivided buildings or lands. 

 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/59.Duties and powers of management corporation

59. Duties and powers of management corporation

(1) The duties of a management corporation shall be as follows:

(a) to properly maintain and manage the subdivided building or land and the common property and keep it in a state of good and serviceable repair; 

(b) to determine and impose the Charges to be deposited into the maintenance account for the purposes of proper maintenance and management of the subdivided buildings or lands and the common property; 

(c) to determine and impose the contribution to the sinking fund to be deposited into the sinking fund account for the purposes of meeting the actual or expected expenditure specified under subsection 51(2); 

(d) to effect insurance according to this Act or to insure against such other risks as the proprietors may by special resolution direct; 

(e) to comply with any notice or order 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 common property; 

(f) to prepare and maintain a strata roll for the subdivided buildings or lands; 

(g) to ensure that the accounts required to be maintained by the management corporation under this Act are audited and to provide audited financial statements for the information to its members; 

(h) to enforce the by-laws; and 

(i) to do such other things as may be expedient or necessary for the proper maintenance and management of the subdivided buildings or lands and the common property. 

(2) The powers of the management corporation shall be as follows:

(a) to collect the Charges from the proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks; 

(b) to collect the contribution to the sinking fund from the proprietors of an amount equivalent to ten percent of the Charges; 

(c) to authorize expenditure for the carrying out of the maintenance and management of the subdivided buildings or lands and the common property; 

(d) to recover from any proprietor any sum expended by the management corporation in respect of that proprietor's parcel in complying with any such notice or order as referred to in paragraph (1)(e)

(e) to purchase, hire or otherwise acquire movable property for use by the proprietors in connection with their use and enjoyment of the common property; 

(f) to employ or arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the subdivided building or land; 

(g) subject to subsection 70(2), to make additional by-laws for the proper maintenance and management of the subdivided buildings or lands and the common property; 

(h) to borrow moneys required by the management corporation in the exercise of its powers or the performance of its duties; 

(i) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid Charges to the maintenance account (whether already imposed or not), or by a charge of any property vested in it or by a combination of any of those means; and 

(j) to do all things reasonably necessary for the performance of its duties under this Act and for the enforcement of the by-laws. 

(3) Where the management corporation performs any repairs, work or act that are or is required or authorized by or under this Part or by or under any other written law to perform, whether or not the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order, but the repairs, work or act were or was wholly or substantially the liability or the responsibility of the proprietor of a parcel only, or wholly or substantially for the benefit of some of the parcels only, any money expended by the management corporation in performing the repairs, work or act shall--

(a) in the case where the repairs, work or act were or was wholly or substantially the liability or the responsibility of the proprietor of a parcel only, be recoverable by the management corporation in an action in a court of competent jurisdiction or before the Tribunal as a debt due to it jointly and severally from-- 

(i) the relevant proprietor of the parcel at the time when the repairs, work or act were or was performed; and 

(ii) the relevant proprietor of the parcel at the time when the action was commenced; or 

(b) in the case where the repairs, work or act were or was wholly or substantially for the benefit of some of the parcels only, or wholly or substantially the liability or the responsibility of the proprietors of some of the parcels only, be recoverable by the management corporation in an action in a court of competent jurisdiction or before the Tribunal as a debt due to it jointly and severally from-- 

(i) the relevant proprietor of each of such parcels at the time when the repairs, work or act were or was performed; and 

(ii) the relevant proprietor of each of such parcels at the time when the action was commenced. 

(4) The amount payable by any proprietor and former proprietor under subsection (3) in respect of any parcel shall not be more than the proportion of the debt which the share unit of the parcel then bears to the total share units of all those parcels.

(5) A proprietor of a parcel who is not the proprietor of the parcel at the time when the repairs, work or act referred to in subsection (3) were or was performed shall not be liable to pay the management corporation any amount due under that subsection if he has, at any time on or within twenty-one days before the date he acquired the title or interest in the parcel, made a requisition in writing to the management corporation to inquire about the amount, if any, recoverable by the management corporation under that subsection in respect of the parcel, and the management corporation has--

(a) certified that no amount is recoverable by the management corporation in respect of the parcel; or 

(b) not given a reply to the requisition at any time within fourteen days of the date of the service of the requisition. 

(6) Where--

(a) the management corporation incurs any expenditure or performs any repairs, work or act that it is required or authorized by or under this Part or by or under any other written law to perform, irrespective of whether or not the expenditure was incurred or the repairs, work or act were or was performed consequent upon the service on it of any notice or order by any Government or statutory authority; and 

(b) the expenditure or the repairs, work or act referred to in paragraph (a) were or was rendered necessary by reason of any willful or negligent act or omission on the part of, or breach of any provision of its by-laws by, any person or his tenant, lessee, licensee or invitee, 

the amount of the expenditure of any money expended by the management corporation in performing the repairs, work or act shall be recoverable by it from that person as a debt in an action in any court of competent jurisdiction or before the Tribunal.

(7) 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 management corporation.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/60.Maintenance account of the management corporation

60. Maintenance account of the management corporation

(1) If the maintenance account in the name of the management corporation had not been earlier established under subsection 50(1), the management corporation shall open and maintain a maintenance account in the name of the management corporation, with a bank or financial institution.

(2) The maintenance account shall consist of all moneys specified in subsection 50(2), and all moneys in the maintenance account shall be used for the purposes specified in subsection 50(3).

(3) Subject to section 52, for the purpose of establishing and maintaining the maintenance account, the management corporation may at a general meeting--

(a) determine from time to time the amount to be raised for the purposes mentioned in subsection 50(3); 

(b) raise the amounts so determined by imposing Charges on the proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks, and the management corporation may determine different rates of Charges to be paid in respect of parcels which are used for significantly different purposes and in respect of the provisional blocks; and 

(c) determine the amount of interest payable by a proprietor in respect of late payments which shall not exceed the rate of ten per cent per annum. 

(4) Any Charges imposed under subsection (3) in respect of a parcel shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered in the manner set out in section 78 from the proprietor of, or his successor-in-title to, the parcel, or the person for the time being receiving the rent of the parcel, whether as an agent or a trustee or a receiver, and who would receive the same if the parcel were let to a tenant.

(5) Any Charges imposed under subsection (3) in respect of a provisional block shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered in the manner set out in section 78 from the proprietor of the provisional block or, where the building to which the provisional block relates has been subdivided, from the proprietors of the parcels in the building, or their successors-in-title, in proportion to the share units of their respective parcels.

(6) For the purposes of subsection (5), "proprietor" includes a purchaser to be duly registered as a proprietor.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/61.Sinking fund account of the management corporation

61. Sinking fund account of the management corporation

(1) If the sinking fund account in the name of the management corporation had not been earlier established under subsection 51(1), the management corporation shall open and maintain a sinking fund account with a bank or financial institution, into which shall be deposited the contribution to the sinking fund paid by the proprietors.

(2) The contribution to the sinking fund shall be used solely for the purposes specified in subsection 51(2).

(3) Subject to section 52, for the purpose of establishing and maintaining the sinking fund account, the amount to be paid by the proprietors of the parcels or provisional blocks shall be a sum equivalent to ten per cent of the Charges imposed under subsection 60(3), unless otherwise determined from time to time at a general meeting of the management corporation, but such contribution to the sinking fund shall not be less than ten per cent of the Charges.

(4) Any contribution to the sinking fund imposed under subsection (3) in respect of a parcel shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered in the manner set out in section 78 from a proprietor of, or his successor-in-title to, the parcel, or the person for the time being receiving the rent of the parcel, whether as an agent or a trustee or a receiver, and who would receive the same if the parcel were let to a tenant.

(5) Any contribution to the sinking fund imposed under subsection (3) in respect of a provisional block shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered in the manner set out in section 78 from the proprietor of the provisional block or, where the building to which the provisional block relates has been subdivided, from the proprietors of the parcels in the building, or their successors-in-title, in proportion to the share units of their respective parcels.

(6) For the purposes of subsection (5), "proprietor" includes a purchaser to be duly registered as a proprietor.

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/62.Duties of management corporation in relation to accounts

62. Duties of management corporation in relation to accounts

(1) A management corporation shall in respect of the maintenance account and the sinking fund account--

(a) cause to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from commencement of the preliminary management period; 

(b) appoint an approved company auditor to carry out the audit of the accounts annually; 

(c) file with the Commissioner a certified true copy of the audited accounts together with the auditor's report within fourteen days of the accounts being audited; and 

(d) permit the Commissioner or any person authorized by the Commissioner in writing to act on its behalf full and free access to the accounts and records of accounts and to make copies or extracts of those accounts and records of accounts. 

(2) Notwithstanding subsection (1), the Commissioner shall have the right to appoint an approved company auditor to investigate the accounts and records of accounts specified in subsection (1), and the management corporation shall pay all the expenses incurred for that purpose.

(3) The management corporation shall furnish to the Commissioner or any public authority such returns, reports, accounts and information with respect to its activities and finances, as the Commissioner may, from time to time, require or direct.

(4) The returns, reports, accounts and information referred to in subsection (3) shall be in such form as the Commissioner may, from time to time, specify.

(5) If the management corporation fails to comply with subsection (1), (2), (3) or (4), every member of the management committee commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(6) In proceedings against a member of the management committee for an offence under subsection (5), it is a defence if the member proves that--

(a) the offence was committed without his knowledge, consent or connivance; and 

(b) he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence. 

Unannotated Statutes of Malaysia - Principal Acts/STRATA MANAGEMENT ACT 2013 Act 757/STRATA MANAGEMENT ACT 2013 Act 757,,/63.Administration of the subsidiary management corporation