Top 5 Interesting FAQ about AGM or EGM in Strata Management

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Question. Calling for AGM is impossible. Strata units for low cost are usually rented out. Tenants refuse to cooperate and inform the owners.

Answer. Please check the register of parcel owners or strata roll, which containing the particulars of all parcel owners in the development area including the details of solicitor acting for the SPA [Section 30(1) and Section 72(1), SMA (Strata Management Act).

This compilations of FAQ was according to a survey carried out by REHDA Institute.

Attendance at General Meeting. Dealing with unit owners is the biggest headache. Strata units for low cost are usually rented out. Tenants refuse to cooperate and inform the where about of the parcel owners thus calling for JMB / MC AGM is impossible.

To check the register of parcel owners (to be maintained by the developer during the Developer’s Management Period and by the JMB during the JMB period) or strata roll (to be maintained by MC during the MC period), which containing the particulars of all parcel owners in the development area including the details of solicitor acting for the SPA [Section 30(1) and Section 72(1), SMA]. It is recommended that the register of parcel owners / strata roll shall be kept in the management office for reference. It is a duty of the developer, the Joint Management Committee or Management Committee to prepare and maintain the record of the register or the strata roll. 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].In Section 19(2) of SMA, 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 OCB 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.

Poor attendance during meetings. Stricter enforcement by COB/Council to parcel owners to attend meetings – most low-cost units are not occupied by owners.

The management corporation can attract better turn-out by Continuous communication and reminder through email or chatgroup. Avoid unsuitable dates or days such as weekdays, 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]. In Section 19(2) of SMA, 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 OCB 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.

Motion for General Meeting. Allowing fresh motions to be included in the extraordinary general meeting (EGM) [Provision for MC, Second Schedule Section 13]. No measures can be taken at present because this is not provided in SMA 2013. This should be recommended as normally EGM’s are called for specific motion.

EGM is a general meeting called to deal with an urgent or specific matter related to the maintenance and management of a strata property. EGM is meant for a specific resolution. Motions are usually to be discussed during the AGM instead of the EGM. Any proprietor may, by notice in writing deposited at the registered office of the management body in not less than 7 days before the time for holding the general meeting, require inclusion of a motion as set out in such notice in the agenda of the next general meeting [Paragraph 13 of Second Schedule, SMA]. According to Second Schedule of Paragraph 12(4), SMA no motion shall be submitted at a general meeting unless –
Notice of the motion has been given in accordance with Second Schedule of Paragraph 12, SMA; or The motion is a motion to amend a motion of which notice has been so given.

Annual Budget – Meeting Agenda. Agenda of First AGM – to consider and adopt the audit account first before consider annual budget [19 (1)]. This is to show a clearer picture on actual expenses vs. budget for the following year before deciding on the service charge and sinking fund.

Agree that the right sequence should be to consider and adopt the audit account before considering the annual budget. The items in the agenda in the Form 5 of SMR are just a list of items and not in sequential order. The items can and should be re-arranged in proper sequence to suit the proper flow of the meeting.

1st AGM for MC. Why Developer still need to convene 1st AGM for MC even though JMB has been formed and all management & accounts already transferred to JMB. [refer to Section 57, SMA]?

It is the responsibility of the developer to call for the first AGM of MC [Section 57, SMA] to pass the full responsibility in the strata management to the purchasers. 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 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.
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 title is issued
The JMB comprises of parcel owners and developer (one seat in the Joint Management Committee) 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
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]

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