Question

What are the important dates that I (strata unit owner and/or the management committee) should know for any AGM or other general meeting?

Answer

Timelines are critical:

  1. for smooth preparation AGM or other general meeting
  2. for strata unit owners to be eligible vote and stand for election
  3. for strata unit owners to be fully prepared for active participation
  4. to avoid an AGM or other general meeting to be declared invalid
Important dates are as follows:

1. 60 days before AGM
AGM Date

The Management Committee to decide on the date of the AGM

  • Preferable on Saturday morning @ 10 am
  • Avoid:
    • School holiday
    • Long weekend
    • Festival day/period

2. 60 days before the AGM
     To Audit Account

The Management Committee to get the auditor to commence the audit.

3. 45 days before the AGM
     To Submit Audited Account

Auditor to complete the audit and submit the signed audited account.

4.45 days before the AGM
     Advance Announcement of AGM Date

The Management Committee to make an advance announcement on the AGM date and such announcement to be displayed on the notice board. The strata unit owners shall take note and be prepared, and begin submitting resolutions and motions, if any to the Management Committee.

5. 30 days before AGM
     Comprehensive Resolution

Under Section 2 of SMA, the Management Committee of Management Corporation need to send the notice of meeting specifying the Comprehensive Resolution that has been given, at least 30 days before the date of the general meeting. Therefore, the strata unit owners shall submit the Comprehensive Resolution, if any, before 30 days of the annual general meeting.

The resolution will be part of the agenda for the annual general meeting and will be discussed during the meeting.

The Comprehensive Resolution is proposed to designate limited common property and create one or more Subsidiary Management Corporations for the purpose of representing the different interests of strata unit owners [Section 17A, STA].

6. 21 days before AGM
     Special Resolution

Under Section 2 of SMA, the Management Committee need to send the notice of meeting specifying the proposed Special Resolution that has been given, at least 21 days before the date of the general meeting. Therefore, the strata unit owners shall submit the Special Resolution, if any, before 21 days of the annual general meeting.

The Special Resolution will be part of the agenda for the annual general meeting and will be discussed during the meeting.

The Special Resolution is proposed to:

  1. Insure against such other risks, apart from insurance referred to in subsection 93(1) [Section 98, SMA]
  2. 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 buildling or land intended for subdivision into parcels and the common property, including all or any of the following matters:
    1. Safety and security measures;
    2. Detals of any common property of which the use is restricted;
    3. The keeping of pets;
    4. Parking;
    5. Floor coverings;
    6. Refuse control;
    7. Behaviour;
    8. Architectural and landscaping guidelines to be observed by all strata unit owners; and
    9. Imposition of fine not exceeding RM200 against any strata unit owner, occupant or invitee who is in breach of any of the By-laws
    [Section 32(3), Section 59(1d), Section 70(2), SMA]
  3. Amend By-laws of the limited common property by Subsidiary MC [Section 71(1a), SMA]
  4. Make additional By-laws or make amendments to such additional By-laws of the limited common property by Subsidiary MC [Section 71(2), SMA]

7. 21 days before AGM
     Notice of meeting – Annual General Meeting

The Management Committee to send notice of meeting together with agenda of meeting, copy of the minutes of the last AGM, audited accounts, proxy form, note for meeting, specify any other matters to be considered at the meeting (including the comprehensive resolution, special resolution and motion, if any), and to display such copy on the notice board.

Second Schedule Paragraph 12(1) of the SMA stated to give the notice of any general meeting to all strata unit owners at least 14 days before the date of general meeting and a copy of such notice shall be displayed at a conspicuous part of the development area. It is advisable to send the notice 21 days before the date of the meeting to ensure enough time for postal delivery.

8. 7 days before AGM
     Motion

Strata unit owners to submit motion if any, by notice in writing and deposited at the registered management office in not less than 7 days before the time for holding the meeting [Second Schedule, Paragraph 13(1), SMA].

Upon receipt of the notice, the management committee shall include the motion in the agenda of next general meeting, and the notice of the motion shall be displayed on the notice board of the management body [Second Schedule, Paragraph 13(2), SMA].

If the notice of meeting has been sent to all strata unit owners prior to receipt of the any motion, then such motion received shall be tabled and discussed under the Other Matter in the agenda.

9. 7 days before AGM
     Outstanding Payment

Strata unit owners to check and ensure that there is no outstanding payment of any kind to be eligible to vote and for election [Second Schedule, Paragraph 2(9), Paragraph 21(2), SMA]

10. 2 days (48 hours) before AGM

  • Owner Proxy Form
    The instrument appointing proxy (eg. absent owners, co-owners) shall be deposited at the registered address of the management body in not less than 48 hours before the time for holding the meeting or any adjournment of the meeting at which the person named in the instrument proposes to vote, failing which the proxy shall not be entitled to attend or vote [Second Schedule, Paragraph 18(5), SMA]
  • Non-Natural Person Representative Nomination Form
    Strata unit owners who are non natural person (eg. company or society) may be represented in any meeting through its representative who is duly authorized or by its appointed proxy [Second Schedule, Paragraph 23, SMA]. However, the Act does not specify that the representative nomination form need to be submitted 48 hours before the meeting.
  • Non-Natural Person Proxy Form
    If the strata unit owners who are non natural persons (eg. company or society) is represented by a proxy, to submit proxy form 48 hours before the AGM to be eligible to speak, to vote and for election. [Second Schedule, Paragraph 18(5), SMA]
  • List of Strata Unit Owners eligible to Vote and for Election
    The Management Committee to displace the list of strata unit owners who are eligible to vote & stand for election on the notice board [Second Schedule, Paragraph 14, SMA]

11. Immediately after the AGM
       Office Bearers

The Management Committee to hold its first AGM to elect among the committee members the following office bearers

  1. Chairman
  2. Secretary
  3. Treasurer
[Paragraph 2(5), Second Schedule, SMA]

12. Within 28 days after the AGM

The Management Committee to:

  • File with the Commissioner certified true copies of
    • The audited accounts of the management body together with the auditor’s report which has been presented to the general meeting;
    • The resolutions passed at the general meeting; and
    • The minutes of the general meeting
      [Second Schedule, Paragraph 8, SMA]
  • Extend copies of the minutes of the meeting to all strata unit owners or display a copy the minutes of the meeting on the notice board of the management body
    [Second Schedule, Paragraph 9, SMA]
  • Issue a notice in Form 5A (as in SMR) to all strata unit owners to inform the strata unit owners of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the management body in that AGM and a copy of Form 5A shall be displayed on the notice board of the management body at a conspicuous part of the development area [Second Schedule, Regulation 13, SMR]

13. Within 30 days
       Open Bank account

  1. Joint Management Body (JMB)The management committee is to open Bank Account within 30 days after its first AGM for the newly established JMB.The Certificate of the Registration of the JMB issued by COB is required for the opening of Bank Accounts.For the first AGM of the JMB, it is advisable to submit the minutes of meeting, names of joint management committee and the bearers, and other documents as per the COB checklist within 2 weeks of the AGM.With submission of complete documents as per COB checklist and constant follow-up, COB can issue the Certificate of Registration of the JMB within 2 weeks upon submission.
  1. Management Corporation (MC)MC comes into existence upon the opening of the book of strata register by the Director of Land and Mines and the certificate of establishment of the MC is issued accordingly. The certificate of establishment is required for the opening of Bank Accounts under the MC name.If the first AGM of MC is convened after the establishment of JMB, the maintenance account and sinking fund account will be opened by the newly elected Management Committee of MC with the certificate of establishment of MC issued by the Director of Land and Mines.During the Preliminary Management Period, the developer is responsible to open and maintain the maintenance account and sinking fund account in the name of the Management Corporation [Section 50(1) and Section 51(1), SMA].

14. Within 30 days after the First AGM of JMB

The developer to transfer all balances of moneys in the maintenance account and the sinking fund account, after payment of all the expenditure which have been properly charged to the accounts, to the JMB [Section 15 (1a), SMA].

15. Within 30 days after the First AGM of MC

  1. The JMB to 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 charges to the accounts, to the Management Corporation [Section 27(2a), SMA];
    OR
  2. The Developer to transfer the control of all balances of moneys in the maintenance account and in the sinking fund account to the Management Committee of the MC [Section 55(1a), SMA].

By: REHDA Institute @ 17 May 2018