- Farah Mohd Afzal
In Malaysia, strata-titled properties (such as condominiums, apartments, and gated communities) are managed by two distinct entities during different stages of the property’s lifecycle: the Joint Management Body (JMB) and the Management Corporation (MC).
The JMB is established within 12 months of delivery of vacant possession. The developer and the purchasers (owners of the units) jointly form this body. The 1st AGM for JMB shall be held within 12 months from the delivery of vacant possession.
If a MC comes into existence before the 1st AGM of the JMB –
No JMB needs to be formed and no AGM needs to be held because under Section 17 (5) Strata Management Act 2013 the provisions concerning MC applies to the Development.
The MC is a more permanent and comprehensive body that takes over the management of the property after the issuance of strata titles to individual owners. The MC is the official legal entity that manages the common property on behalf of the owners. All parcel owners (unit owners) automatically become members. A Council (committee) is elected during the Annual General Meeting (AGM) to run day-to-day affairs
The first Annual General Meeting (AGM) is convened by the developer, typically within 1 month of the expiration of the initial period.
Initial period is – the period between the issuance of Strata Title and ENDS once there are 25% of registered proprietors.
Therefore, once ST is issued it is IMPORTANT to proceed with the perfection of transfer with each purchaser. This is because if this is not done, no Annual General Meeting can be held and JMB continues with the responsibility of managing the Development.
What are you rights as parcel owners if the developer fails to convene the 1st AGM?
The law does not allow the MC to remain inactive just because the developer does nothing.
1. Parcel owners may:
- Apply to the Commissioner of Buildings (COB) to direct or authorise the convening of the 1st AGM
- In some cases, owners themselves can request to convene the meeting with COB’s involvement
2. COB’s powers
The COB can:
- Instruct the developer to call the AGM within a specified time; or
- Appoint a person/agent to convene and conduct the AGM if the developer fails
- Take enforcement action against the developer
3. Penalties on the developer
Failure to convene the 1st AGM may expose the developer to:
- Fines under the Act
- Possible prosecution for non-compliance
General Disputes Resolution and Appellate Division
General Disputes Resolution
and Appellate Division
General Disputes Resolution
and Appellate Division
General Disputes Resolution
and Appellate Division
This article is prepared and published by
Messrs. Ben Lee & Sharen
Advocates & Solicitors