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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.

Issues like the above get more serious in self-managed buildings because one simply does not know the law revolves around the general meeting of a JMB / MC.

Fortunately, the new Strata Management Act 2012 (SMA) has given some sort of guidance with the intention of assisting strata proprietors when it comes to calling a general meeting, whether it is an annual or extraordinary general meeting.

When to Call AGM?

For JMB – First AGM, within 12 months after deliver of vacant possession

For MC – First AGM within 1 month after the expiry of initial period which is when the proprietors have registered the strata for at least ¼ of the aggregate share units

Thereafter, once in every year, not more than an interval of 15 months lapse in between.

Before AGM

A. Notice of Meeting (can seek guidance from Form 5 or 14 of the Strata Management (Maintenance and Management) Regulations 2015. (*note however Form 14 applies to the first AGM of MC)

  1. prepare a notice of general meeting at least 14 days before the AGM date
  1. notice must carry:
    1. the place, date and time for the meeting;
    2. each proposed resolution to be considered at the meeting; and
    3. a notification to each proprietor of his voting rights and that he may vote in person or by proxy at the meeting.
  1. in the case of AGM, notice should also contain
    1. minutes of last AGM
    2. audited accounts with auditor’s report
    3. any other matters be considered
  1. circulate the notice by way of registered post / by hand to their last known address

B. Proxy Form

It must be in writing:

  1. if a natural person, by the proprietor making the appointment or his lawyer; or
  2. if a company, under company seal or signed by an officer of the company or director or its lawyer

Proxy Form must be deposited at the registered address of the JMB/MC not less than 48 hours before the time of meeting.

Who can be the representative of the Proprietor?

  1. if a company – the representative or proxy
  2. if a company under receivership, the receiver and manager or proxy
  3. if a company under liquidation, the liquidator or proxy
  4. if a society – by the office bearers or any person duly authorized or proxy
  5. statutory body – one of its members or proxy

A sample of a proxy form can be seen in Form 5 and 14.

At the AGM

A. Quorum

  • ½ of the proprietors entitled to vote
  • If after hour there is no quorum, those present shall constitute a quorum

B. Proxy

  • A proxy is entitled to vote on a show of hands OR by poll
  • A proxy can demand for poll
  • A proxy cannot exercise a vote if the person who appoints the proxy is exercising power to vote
  • Co-proprietors can vote  by a joint appointed proxy

C. Chairman

Must be from the proprietors elected by proprietors who are present

D. Method of Voting

  • Each proprietor shall have 1 vote (if show of hands)
  • If on poll, shall have votes corresponding with share units
  • By show of hands unless a poll is demanded
  • Resolutions carried or rejected be recorded

E. Nomination of Candidates

Can be eligible for election as member if:

  1. 21 years of age
  2. is a proprietor or a co-proprietor
  3. is nominated for election by a  company, society, statutory body
  4. is not a proprietor but a member of the immediate family of a proprietor who owns 2 or more parcels and is nominated for election
  5. there are no arrears.

*A normal proxy (not for election) is not eligible.

F. General

  • Minutes of meeting must be prepared.
  • A proprietor cannot vote if a proprietor owes any charges to the MC 7 days before the meeting.

After AGM

Fix 1st MC meeting and nominate office bearers (chairperson, secretary and treasurer)

Within 28 days , file with Commissioner of Buidlings certified true copies of:

  1. audited accounts
  2. resolutions passed
  3. minutes of general meeting
  4. display the minutes of meeting
  5. File Form 5A or 15 (5 for JMB and 15 for MC) with COB and issue Form 5A or 15 to all proprietors

This article is part of a series: Part 1 | Part 2Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8

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Lai Chee Hoe

Lai Chee Hoe

Partner at Chee Hoe & Associates. With 10+ years of experience under his belt, he specializes in civil and corporate litigation. He is also the current Chairperson of various Joint Management Bodies.

 
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