Insights on Malaysia Legal Matters.

Lai Chee Hoe

Lai Chee Hoe

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JMB & MC Series: 10 Most Common Questions Asked During Annual General Meetings

I have been consistently appointed to attend general meetings of the joint management body or management corporation in various development areas and I realise there is still a lack of knowledge when it comes to the meeting procedures and the laws relating to general meeting of a joint management body / management corporation.

For the benefit of our readers, I have summarized some of the more common questions asked during the general meetings and I reproduce them below, in no particular order.

Q1. Can I vote if I have an outstanding in one of the many units I own?

A1. The answer appears to be no by a plain reading of Para 21(2) Second Schedule Strata Management Act 2015.

Para 21(2) of the Second Schedule Strata Management Act 2013 provides that:

“A proprietor shall not be entitled to vote if, on the seventh day before the date of the meeting, all or any part of the Charges, or contribution to the sinking fund, or any other money due and payable to the management corporation in respect of his parcel are in arrears”

However one may argue that when it comes to voting rights, his/her rights attached to the parcel which has no outstanding charges or sinking fund cannot be denied. The right to vote should be retained to the parcels where there is no outstanding.

* In the interpretation of a provision of an Act, a construction that would promote the purpose or object underlying the Act (whether that purpose or object is expressly stated in the Act or not) shall be preferred to a construction that would not promote that purpose or object.

Q2. Can I be elected to the joint management committee or management committee if I have outstanding charges to one of the many units I own?

A2.  A plain reading of Paragraph 2(9)(a) Second Schedule Strata Management Act 2013 again indicates a No.

Notwithstanding subparagraph (7), an individual referred to in that subparagraph shall not be eligible for election as a member of the management committee of a management corporation if, on the seventh day before the date of election”.

(a) where he is a proprietor or co-proprietor of a parcel, all or any part of the Charges, or contribution to the sinking fund, in respect of that parcel are in arrears; or

(c) where he is a member of the immediate family of a proprietor who owns two or more parcels and is nominated for election by that proprietor, all or any part of the Charges, or contribution to the sinking fund, in respect of any parcel are in arrears.

It is interesting to note however that limb (c) provides for 2 or more parcels but not limb (a).

Q3. Can an absent proprietor be nominated and elected as a member of a joint management committee or a management committee?

A3. Yes.  This is supported by paragraph 2(13) Second Schedule of Strata Management Act 2015.

“An absent proprietor shall not be nominated for election as a member of the management committee unless he has appointed a proxy and has given his written consent to be nominated and elected as a member of the management committee.”

Q4. Who should elect the office bearers, Chairman, Secretary and Treasurer of the Joint Management Committee or Management Committee?

A4. The Joint Management Committee and/or the Management Committee at the conclusion of the general meeting can elect the officer bearers but not the parcel owners or the proprietors at the general meeting.

Paragraph 2(5) Second Schedule of the Strata Management Act.

“There shall be a chairman, secretary and treasurer, all of whom shall be natural persons, to be elected by the management committee from among its members immediately after the conclusion of the general meeting but no chairman, secretary or treasurer shall hold office for more than two consecutive years.”

Q5. If a management committee absents from 3 consecutive meetings, does it automatically deemed to have vacated his/her office?

A5. Yes only if it can be proven that no leave in writing from the Chairman was given to him/her for her absence.

Paragraph 3 1(i) of the Second Schedule of Strata Management Act 2013 provides that “ in the case of a member of the management committee other than the chairman, if he absents himself from three consecutive meetings of the management committee without the leave in writing of the chairman;

Q6. Can there be a vacation of office if the Chairman of the joint management committee or management committee absents from 3 scheduled meetings?

A6. Yes. Unless he was given leave by the Joint Management Committee / Management Committee to be absent.

Q7. How do you vote in a general meeting?

A7. By hand unless if a parcel owner / proprietor demands to vote by poll.

Paragraph 17(1) Second Schedule Strata Management Act 2015

“Any matter that requires a decision at a general meeting shall be decided on a show of hands unless a poll is demanded by a proprietor or his proxy.”

Q8. How to decide on matters in a general meeting?

A8. Most of the motions can be decided by a simple majority vote, 51%. There are however provisions in the Strata Management Act 2015 which provides for a special resolution 75% or unanimous resolution, 100%.

Q9. Can I propose a motion to be voted upon at the general meeting itself?

A9. No. It must be by way of a notice in writing deposited with the management office before 7 days of the schedule time for the holding of the meeting.

Paragraph 13(1) of the Second Schedule Strata Management Act 2015

 “Any proprietor may, by notice in writing deposited at the registered office of the management corporation not less than seven days before the time for holding the meeting, require inclusion of a motion as set out in such notice in the agenda of the next general meeting of the management corporation.”

Q10. Do I need to appoint a lawyer to issue letter of demand to defaulters?

A10. Not necessary. You can prepare Form 11 or Form 20 and serve them on the Defaulters.

Download the free Strata Management forms from the BurgieLaw online legal template store.

Form 11
NOTICE TO DEMAND PAYMENT OF SUM DUE BY PURCHASER OR PARCEL OWNER
– for use of a developer of a joint management body

Form 20
NOTICE TO DEMAND PAYMENT OF SUM DUE BY PROPRIETOR
– for use of a management corporation

 
BurgieLaw

BurgieLaw

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Who is rushing to wind True Fitness up?

If you are interested to read from a legal stand point on the biggest closure of gym centers in Malaysia, Mr. Lee Shih, a dispute resolution lawyer at Skrine has written on 5 Key Legal Issues from the Closing Down of True Fitness Malaysia on his website at TheMalaysianLawyer.com.

Burgielaw just simply could not resist to put on their investigating cap and did some homework. The documents extracted below are information available in the public domain.

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BurgieLaw

BurgieLaw

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Property Law Seminar 2017

BurgieLaw is the strategic partner for the 1-day intensive seminar which will highlight and discuss the latest updates and developments on strata management, property development, conveyancing practice and the problems faced by lawyers, developers, purchasers, management bodies, property managers and the COB in the implementation and compliance of these changes. The key topics that will be covered include:

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BurgieLaw

BurgieLaw

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BurgieLaw’s Response To TheMalaysianLawyer Article

We refer to the article “Bar Council finds BurgieLaw and Dragon Law in breach of Legal Profession Act; yet to decide on CanLaw“, published by themalaysianlawyer.com which extracted paragraphs from the Legal Profession Committee’s (“LPC”) report in the 2016/2017 Annual Report of the Malaysian Bar.

Burgielaw.com wishes to clarify that, as of today, Bar Council has neither disapproved nor disallowed the application of Burgielaw.com.

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Arina Ong

Arina Ong

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Protection for the Victims of Domestic Violence

stop_domestic_violence

Does anyone know how prevalent is domestic violence? According to Kuala Lumpur Hospital, it has recorded up to 150 domestic violence cases monthly in 2016. More often than not, the victims suffered in silence, not knowing what course of action to take.

In Malaysia, the Domestic Violence Act 1994 (“the Act”) was passed in Parliament in order to fulfill the government’s commitment under the Convention on the Elimination of All Forms of Discrimination Against Women (“CEDAW”) General Recommendation No. 19. The Act came into force on 01.06.1996.

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Lai Chee Hoe

Lai Chee Hoe

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JMBs & MCs Part 8: The JMC ought to be remunerated

meeting_room_with_joint_management_committee

My previous articles set out the obligations and liabilities of each JMC or MC members which includes a fine of RM250,000.00 or imprisonment or both. This usually prompts an immediate reaction to effect sufficient insurance coverage to insure against all risks including defamation, omission and negligence.

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BurgieLaw

BurgieLaw

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BurgieLaw raises seed funding to make legal access affordable to all

burgielaw_seed_funding_tinkbig_venture_20161118

Malaysia based legal tech startup BurgieLaw.com today announced it raised a USD200,000.00 seed round of funding led by TinkBig Venture.

The legal tech start up is one of the few active ones in South East Asia alongside other legal tech like Asia Law Network in Singapore and Dragon Law in Hong Kong.

BurgieLaw aims to work closely with other legal tech companies in the neighboring regions and aims to use the funds for marketing purposes and introduce more tech based services to the legal industry and to the customers at large with the primary objective to make legal services more affordable and accessible.

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Lai Chee Hoe

Lai Chee Hoe

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JMBs & MCs Part 7: Exercise your statutory rights accorded to you in an AGM or EGM

annual_general_meeting

Every time when a general meeting approaches, I see many of the JMB / MC struggles. They are not too sure what are the documents to prepare, the time and method to circulate the notice of meeting, and what to include in the agenda.

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BurgieLaw

BurgieLaw

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How To File A Trademark In Malaysia

A Step-By-Step Guide To Trademark Application

How to file for a trademark in Malaysia

One of the most common types of IP is the trademark. It’s a powerful type of intellectual property that gives your company a public face. People use it to identify who you are and what you do. For example, the tagline “Finger Lickin’ Good is a classic and powerful slogan that immediately evokes recognition of KFC even in the absence of chicken and logo.

Trademark laws and applications may differ from country to country. In Malaysia, it looks like a few steps written down but in reality, it’s often a long and costly process that involves a lot of patience.

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BurgieLaw

BurgieLaw

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Differentiating Intellectual Property In Malaysia

Intellectual Property & Their Differences

intellectual property and their difference

Unless you’ve lived on a remote deserted island from birth for your entire life, you’ve definitely encountered intellectual property (IP). The term is defined by the World Intellectual Property Organization as,

…creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.

The intention of intellectual property law is to protect the ideas, inventions etc. and the interests of their creators.

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