FAQ on Annual General Meeting
Dealing with Strata Unit Owners is big challenge. Attracting them to attend the AGM is not easy. It is hard to get a quorum for the AGM.
- The management committee can attract better turn-out by
- Continuous engagement through communal activities
- Early communication and reminder through email or chat group
- Avoid unsuitable dates or days such as school holidays or long weekends or festival periods
- Meeting can still proceed 30 minutes after the scheduled time if there is no quorum and those parcel owners entitled to vote whom are present shall constitute a quorum [Second Schedule, Paragraph 15, SMA]
- Section 19(2) of SMA states – if within 30 minutes after the time appointed for the meeting, no purchaser entitled to vote turns up or all the purchasers present, for any reason, refuse to be members of the joint management committee, the developer or the person appointed by COB to convene the meeting shall within 7 days of the date of the meeting inform the COB of the fact and the COB may
- Appoint a new date for the election of the joint management committee; or
- Appoint a managing agent under Part VI to maintain or manage the buildings or lands intended for subdivision into parcels and the common property comprised in the development area
Agenda of the First AGM
- should consider and adopt the audited account [item (e) of Form 5 of SMR] first before consider annual budget [item (b) of Form 5 of SMR]. This is to show a clearer picture of actual expenses as benchmark for the budget for the following year, before deciding on the maintenance charge and sinking fund.
- To determine the number of members of the joint management committee (JMC) and to elect the members of the JMC [item (a) of Form 5 of SMR]: should not be the first item but the last item before any other matters
- Agree that the right sequence should be to consider and adopt the audited account before considering the annual budget for the following year, and followed by the amount to be paid for Maintenance Charges and Sinking Fund
- Agree that the election of the members of JMC should be the last item before any other matters. In any other AGM, election of the committee is among the last item.
- The items in the agenda in the Form 5 of SMR are just a listing of items and not in sequential order. The items can and should be re-arranged in proper sequence to suit the proper flow and intent of the meeting
Why Developer still need to convene 1st AGM for MC even though JMB has been formed and all management & accounts already transferred to JMB?
- It is the responsibility of the developer to call for the first AGM of MC as per Section 57, SMA, to pass the full responsibility in the strata management to the proprietors
- The first AGM of MC will only be called when the titles of a quarter of the aggregate share units have been transferred to the owners [Section 57, SMA]
- The responsibility of the developer is to monitor the progress of the transfer of the titles from developer to the owners/purchasers, and to call for the first AGM of the MC when a quarter of the aggregate share units have been transferred to the owners/purchasers
- For reference, there are some differences between JMB and MC
- JMB is formed within 12 months after vacant possession and before strata title is issued while the MC comes into existence when strata titles are issued
- The JMB comprises of parcel owners and developer (one seat in the Joint Management Committee is reserved to the Developer [Section 17(4), SMA] but MC comprises solely of proprietors or parcel owners only
- Both JMB and MC is a corporate body having perpetual succession but JMB will be dissolved 3 months after the first AGM of MC [Section 27(1), SMA]
- The first AGM of MC will only be called when the titles of a quarter of the aggregate share units have been transferred to the parcel owners [Section 57, SMA]