Agenda for Annual General Meeting

Question

Is there any agenda for the Annual General Meeting so that all important issues are covered for a productive meeting to be conducted? What are the minimum items that the Annual General Meeting should discuss?

Answer

1. The agenda for the first AGM of the JMB is a follows:

First annual general meeting of joint management body
19. (1) The agenda for the first annual general meeting of the joint management body shall include the following matters:

  1. to appoint the chairman of the meeting [Para 16, Second Schedule, SMA];
  2. to determine the number of members of the joint management committee and to elect the members of the joint management committee;(Note: election of committee members by standard practice is held as the last item of the agenda)
  3. to consider the annual budget prepared by the developer under subsection 18(4);
  4. subject to subsections 25(2) and (3), to determine the amount to be paid by a parcel owner as the Charges, and contribution to the sinking fund;
  5. to determine the rate of interest payable by a parcel owner in respect of any late payment of the Charges, or contribution to the sinking fund, by the parcel owner;
  6. to consider the audited accounts specified in subparagraph 14(1)(b)(ii);
  7. to confirm the taking over by the joint management body of insurances effected by the developer under this Act;
  8. to make additional by-laws;
  9. to appoint an approved company auditor to carry out the audit to the maintenance account and the sinking fund account the joint management body, for the period fixed by this general meeting [Form 5 of SMR – Notice of 1st AGM of JMB)]; and
  10. to consider any other matter connected with the maintenance and management of the common property of the building or land intended for subdivision into parcels.
    [Sec 19, SMA]

The following are some other items of relevance that should be included in the agenda of the 1st AGM:

  • To discuss opening of an income-bearing deposit account with a financial institution for monies exceeding RM5,000 and for which are not required for immediate use [Section 36, SMA];
  • To discuss the name of the JMB;
  • To appoint the property manager for the JMB (the developer or the developer’s out-sourced property manager or any other property manager);
  • To take over contracts signed by the developer, e.g. security, cleaning, landscaping, etc;
  • To appoint other service providers such as mechanical and electrical (M&E) maintenance; unless it is covered by the developer during the Defect Liability Period (DLP);
  • To allow the developer to continue to collect monthly maintenance charges and contribution to sinking fund before the JMB’s bank accounts are opened;
  • To detail the inventory of documents to be handed over from developer to JMB;
  • To set a date for joint inspection of the common property by the developer, main building contractor and JMC for handing over;
  • To take over any utility deposits paid by developer to the relevant authorities or utility companies for supply in the common property such as water and electricity.


2. The agenda for the first AGM of the MC is as follows:

First annual general meeting of Management Corporation
58. The agenda for the first annual general meeting of a management corporation shall include the following matters:

  1. to appoint the chairman of the meeting [Para 16, Second Schedule, SMA];
  2. to determine the number of members of the management committee and to elect the management committee where there are more than three proprietors(Note: election of committee members by standard practice is held as the last item of the agenda) ;
  3. to consider the budget prepared by the developer under subsection 57(4);
  4. to decide whether to confirm or vary any amount determined as the Charges, or contribution to the sinking fund;
  5. to determine the rate of interest payable by a proprietor in respect of late payment charges;
  6. to consider the audited accounts of the management corporation specified in subparagraph 55(1)(b)(ii);
  7. to decide whether to confirm, vary or extend the insurances effected by the developer for the management corporation under this Act;
  8. to make additional by-laws;
  9. to appoint an approved company auditor to carry out the audit to the maintenance account and the sinking fund account the management corporation, for the period fixed by this general meeting [Form 5 of SMR – Notice of 1st AGM of JMB)]; and
  10. to consider any matter connected with the maintenance and management of the common property of the subdivided buildings or lands.
    [Sec 58, SMA]

The following are some other items of relevance that should be discussed at the 1st AGM:

  • To discuss opening of an income-bearing deposit account with a financial institution for monies exceeding RM5,000.00 and for which are not required for immediate use. [S80, SMA];
  • To appoint the property manager for the MC (the developer or the developer’s out-sourced property manager or any other property manager – applicable if transition is from Developer Management Period to MC Period);
  • To take over contracts signed by the developer/JMB, e.g. security, cleaning, landscaping etc;
  • To appoint other service providers such as mechanical and electrical (M&E) maintenance; unless it is covered by the developer during the Defect Liability Period (DLP);
  • To allow the developer/JMB to continue to collect monthly maintenance charges and contribution to sinking fund before the MC’s bank accounts are opened;
  • To detail the inventory of documents to be handed over from developer/MB to MC;
  • To set a date for joint inspection of the common property by the developer/JMB, main building contractor (if applicable) and MC for handing over;
  • To take over any utility deposits paid by developer to the relevant authorities or utility companies for supply in the common property such as water and electricity.


3. The Agenda for subsequent AGMs

The Strata Management Act and Strata Management Regulation have only spelled out the items to be discussed during the first AGM of JMB and MC. It is a normal practice to adopt the items in the agenda of the first AGM for all subsequent AGMs, unless it is irrelevant.

The agenda for the subsequent annual general meeting of a Joint Management Body or Management Corporation should include the following items:

  1. to appoint the chairman of the meeting [Para 16, Second Schedule, SMA];
  2. to consider the minutes of the last annual general meeting;
  3. to consider the audited accounts;
  4. to consider the budget for the following year
  5. to decide whether to confirm or vary any amount determined as the Charges, or contribution to the sinking fund;
  6. to determine the rate of interest payable by a proprietor in respect of late payment charges;
  7. to decide whether to confirm, vary or extend the insurances;
  8. to make additional by-laws;
  9. to appoint an approved company auditor to carry out the audit to the maintenance account and the sinking fund account the management corporation, for the period fixed by this general meeting;
  10. to consider any matter connected with the maintenance and management of the common property; and
  11. to determine the number of members of the management committee and to elect the management committee.

Note:

Notwithstanding any other provisions of this Act, the joint management body shall not enter into any contract relating to the maintenance and management of any building or land intended for subdivision into parcels and the common property in the development area for any period exceeding twelve months [Section 21(3), SMA]
There are some relevant sections on the agenda of AGM contained in second schedule of the SMA as follows:
Second Schedule of SMA
Interpretation
1. In the application of this Schedule to any management corporation-
“general meeting” means a general meeting of the management corporation and includes the first annual general meeting.
Keeping of Record and Account of Management Corporation
7. (7) The management committee shall prepare for each annual general meeting, proper accounts relating to all moneys of the management corporation and the management corporation’s income and expenditure.
Annual General Meeting
10. (1) The management corporation shall hold an annual general meeting for the consideration of accounts, election of the management committee and the transaction of such other matters as may arise.

© REHDA 8-7-2018