• What is Joint Management Body (JMB) or Management Corporation (MC?)

     

    What is Joint Management Body (JMB) or Management Corporation (MC?)

     

    The JMB or MC is statutory bodies under ACT 663 that are formed to take over  management  and maintenance the sub-divided building and common property in the strata development such as Condominium or Apartment and now include Gated & Guarded strata landed property. Simply, the JMB is formed if the MC is not formed yet. After that, the MC is formed only after the developer of the land on which the strata development stands, successfully applies for subdivision of the building and the land office issues the strata titles for the respective parcels in the building.

     

    Before & After

     

    JMB is formed before issuance of the strata titles for the respective parcels in the building. The MC is formed after the land office issues the strata titles.

     

    JMB & MC are corporate bodies

    Definition:

     

    The JMB/MC is corporate bodies. Being corporate bodies, they can sue and be sued. They have “perpetual succession” meaning to say they exist forever until they are dissolved. However, differences exist in the composition of the JMB and MC.

     

    Composition of JMB

     JMB comprises the developer and purchasers of the parcels in the building.

    Composition of MC

     

    MC comprises initially the original proprietor of the land on which the strata development stands, normally the developer, and subsequently, the purchasers who have transferred their strata titles to their name and had registered themselves as parcel owners.

     

    What is Management Committee?

     

    The JMB/MC is run by a joint management committee (JMC) or (AJK) in Bahasa Malaysia and management committee respectively, normally refer as council members. The committee members are elected at the JMB’s/MC’s annual general meeting (AGM).

     

    Under the Strata Management Act 757, the number of committee members elected for the JMC/ management committee is between three and 14 parcel owners.

     

    The law is very clear- all executive committee members are: Personally Liable

    PLEASE note that the committee is to act in the interest and benefit of the all owners living together in the strata community. Thus the committee ought to refrain from acting in accordance with its own whim and fancy. More important, it must refrain from mismanaging the money collected from owners for the maintenance and management of the Common property.

     

    If the JMC/MC acts in a manner that is detrimental to the general interest of the parcel owners, they are personally liable to the JMB/MC respectively for damages sustained by the BODY.

     

    Eligibility-Who is Eligible?

     

    An Executive Committee member of the JMC/MC is required to have a high standard of integrity. ACT 757 provides a comprehensive list of conditions that a committee member must follow.

     

    1.      the parcel owner must be at least 21 years old and

    2.      Have fully paid his arrears in maintenance charges and sinking fund at least seven days before the AGM.

    3.       It is to be noted that a proxy is not eligible for election of committee member.

     

    INADDITION: committee member, he must observe the following conditions:

     

    1.      He is not a bankrupt;

    2.      He is still a parcel owner;

    3.      He is not convicted for an offence of fraud or dishonesty;

    4.      His conduct over his duties as committee member must not bring discredit on the JMC/MC;

    5.      He must be of sound mind or is capable of discharging his duties;

    6.      If he is the chairman, he must not absent himself from three consecutive committee meetings without the leave of the JMC/MC;

    7.      If he is not the chairman, he must not absent himself from three consecutive committee meetings without the leave of the chairman;

    8.      He must not be in arrears of the maintenance charge and sinking fund (including interests) for three consecutive months;

    9.      If he commits a serious breach of the by-laws, he must remedy the breach within 14 days of the notice from the JMC/MC.

     

    If the parcel owner fails to observe the above conditions, he is deemed to have vacated his office as committee member. Consequently, the JMB/MC may appoint another parcel owner to replace the member and to hold the office.

     

    A committee member may resign from his office at any time by giving written notice to the JMB/MC.

     

    How do I get more information?

    You can find the answer to your question anywhere in my blog 

    http://www.gmssolutions.com.my/blog

    If not; please don’t hesitate to contact me via email gmsssb@gmail.com

    DISCLAIMER: The article is solely the author’ opinions and act as a guide to us & we adopted it as part of SOP only for internal use. GMSSSB will not be liable for any losses arising out of reliance on the advice here.

    Article written by Joseph Wong

    Posted by GMSSSB

    Term of reference 2002-2170

    Date: 27-9-2013

     

    Writer’s Profile

    The author is neurological dysfunctional individual due to brain injury in 2009, Dementia is part of the disorder that  is slowly setting in ,the author afraid  that the wisdom, knowledge and 25-year hands-on experience in property management will be lost forever if these are not put in writing soon, so the author started this blog 1 year ago, hoping by sharing and publishing via the blog in order for academic scholars or  peer in the Industry  to review the work and make it available for a wider audience. Main objection of publication is  to present the existing knowledge in a new form, so that lay person can easily  understand, the author believes in open access publishing, in which the articles or the whole journal is freely available from the time of publication. Articles also  served as Term of Reference by the firm, adopted it as SOP for internal use.