Friday, January 15, 2010

JMB - something good to know / understand

What is JMB
Joint Management Body to enable Purchasers and Developer to jointly managed the buildings and common properties before the issuance of strata tittles and formation of Management Corporation.
Legal status of JMB
It is governed by the Building and Common Property (Maintenance and Management) Act, 2007.
Composition of the JMB’s committee
The Joint Management Committee (JMC) shall consist of the Developer and not less than 5 and not more than 12 Purchasers who shall be elected at the Annual General Meeting of the Body. (Ref : Sect 11(2))
• From among the members of the Committee elected under Sect 11(2) , there shall be elected a Chairman, a Secretary and a Treasurer. (Ref : Sect 11(3))
• It is the duty of the JMB to inform the Commissioner of Building (COB) the name of the Body within twenty eight days of the first meeting. (Ref : Sect 7(1))
Who is eligible to vote
Purchasers who are presence at the first AGM and who have paid maintenance charges in respect of their parcels to the Building Maintenance Account of the Developer. (Note: Joint purchasers shall not be entitled to vote except by way of a jointly appointed proxy). (Ref : Sect 6(2) )
Pre requisites for establishment of JMB
1) The initial quorum (legal requirement) for establishing the JMB is 25% (one quarter) of the Purchasers having paid their maintenance charges and thereby having the right to vote at the 1st AGM meeting of JMB.
2) It should be established upon the convening of the first meeting not later than twelve months from the date of delivery of vacant possession of the parcels to the purchasers.
3) All resolutions at the first meeting of the Body shall be decided by a show of hands. (Ref : Sect 6(2) & (4) )
Meeting fails to be conducted?
1) The developer shall, within seven days of the date of the meeting, inform the Commissioner of Building (COB) of the fact and the Commissioner may :
2) Appoint a new date for the first meeting of the Body.
3) Appoint a managing agent to maintain the common property of the building. (Ref : Sect 7 )
Agenda of the meeting
• Election of the office bearers of the Committee.
• To confirm the taking over by the Body of insurances effected by the developer.
• To determine the amount to be paid by the purchasers to the Building Maintenance Fund for the maintenance and management of the common property of the building.
• To determine the rate of interest payable by a purchasers in respect of late payment of charges.
• Any matter connected with the maintenance and management of the property of the building. (Ref : Sect 6(1) )


Duties of the JMB
• To properly maintain the common property and keep it in a state of good and serviceable repair
• To determine and impose charges that are necessary for the repair and proper maintenance of the common property.
• To insure and keep insured the building to the replacement value of the building against fire and such other risk as may be determined by the Body.
• To apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of the building.
• To comply with any notices or orders given or made by the local authority or any competent public authority.
• To prepare and maintain a register of all purchasers of the building.
• To ensure that the building maintenance fund is audited and to provide audited financial statements for the information to the purchasers.
• To enforce house rules (Ref : Sect 8(1))
Power of JMB
• To collect from purchasers maintenance and management charges from the purchasers in proportion to the allocated share units.
• Authorize expenditure for carrying out the maintenance and management of the common property.
• Recover monies due from purchasers.
• Acquire property for use by purchasers in connection with the common property.
• Secure the services of a person or agent to undertake the maintenance and management of the common property of the building.
• Make house rules.
• To do all things reasonably necessary for the performance of its duties under the Act. (Ref : Sect 8(2) )
Minutes of meeting submit to COB MPPP?
Yes, the Committee shall cause copies of the minutes of all its meetings to be submitted to the Commissioner (COB) as soon as practicable.
(Ref : Subsect 7(4) of the First Schedule)
Note: (We recommend that the minutes of the first AGM to be submitted to the COB together with the committee members list within 28 days from the date of the AGM.
What did the Developer need to do prior to the AGM
a. To open and maintain Building Maintenance Account; (Ref:Sect 16(1))
b. Developer shall deposit into the Building Maintenance Account:
• All charges received from the purchasers for the maintenance and management of the common property;
• All charges for the maintenance and management fees for the unsold units.(Ref:Sect 17(1))
c. Cause proper accounts of the Building Maintenance Account to be kept in respect of all sums of money received from and all payments made out of the Building Maintenance Account; (Ref:Sect 17(2)(a))
d. Appoint a professional auditor to audit the account annually or one month before the date of actual transfer to JMB.(Ref:Sect 17(2)(b))
e. File with the COB a copy of the statement of accounts certified by the auditors and a copy of the auditor’s report within 14 days of the accounts being audited; (Ref:Sect 17(2)9c)
f. Forward to Commissioner a copy of statement of accounts certified by the Auditor; and (Ref:Sect 17(2)(b))
g. To insure the building against any loss of the building and against fire and other risks. (Ref:Sect 17(4)) (Above are currently practiced by the Developer)
(Above are currently practiced by the Developer)
What / when to hand over Building Maintenance Account (BMA) to JMB
The surplus moneys in the BMA shall be transferred to the JMB not later than one month from the date of establishment of the JMB and shall be known as the Building Maintenance Fund (BMF). (Ref : Sect 22(1))
When JMB supposed to be dissolve
The JMB shall be deemed to be dissolved three months from the date of the first meeting of the Management Corporation.
(Ref : Sect 15(1) )
When will be the (MC) Management Corporation be formed?
The MC has to be formed within 1 month after ¼ of the aggregate share units have been registered as owners of the parcels.
(Ref : Strata Title Act )


Prepared by :
Kamaruzaman bin Suradi

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