Half-baked Exemption Orders for COBs, Developers, JMBs, and MCs

By : Ng Wei Aik

After waiting for so long, the Minister of Housing and Local Government (KPKT) has finally published four (4) gazettes as to exempt certain proviso being applicable to the Commissioner of Buildings (COB), Developer, Joint Management Body (JMB), and Management Corporation (MC) under the Strata Management Act 2013 (Act 757):

P.U. (A) 274 – Strata Management (Exemption to Developer) Order 2021

P.U. (A) 275 – Strata Management (Exemption to Commissioner of Buildings) Order 2021

P.U. (A) 276 – Strata Management (Exemption to Management Corporation) Order 2021

P.U. (A) 277 – Strata Management (Exemption to Joint Management Body) Order 2021

All these exemption orders can be downloaded from HERE

In fact, these four gazettes shall be published earlier if the KPKT is serious in tackling the problems faced by the COB, Developer, JMB, or MC in compliance with the legal requirements as stipulated under the Act 757, especially with the implementation of MCO, EMCO, CMCO, and the latest FMCO.

But why only eight (8) days were left for all concerned parties to rectify all their non-compliance which have been dragged on for a period of over fifteen (15) months, when all these gazettes were only published on 23rd of June, 2021 with the Minister signed one day before that, after she had consulted the National Council on Local Governments over the matters.

It is extremely late for the Minister to do so, as if the Minister is really sitting on her jobs, when all the exemptions being provided under the gazettes will soon to be expired on 30th of June, 2021. In other words, if JMB/MC cannot convene their AGM between 18th of March, 2020 and 30th of June, 2021, and now they are required to get these AGMs be convened the latest by 1st of July, 2021.

How could an AGM be called within the shortest period of time? The JMB/MC has no other way but to issue at least 14 days’ notice for convening an AGM. In viewing of our Full Movement Control Order (FMCO) is still in place and further extension might be announced by the federal government very soon, how could you expect that the JMB/MC could get their AGMs be called the latest by 1st of July, 2021?

All these half-baked exemption orders will only create more confusion as well as to create more conflicts and tensions between the owners and the JMB/MC and also between the purchasers and the Developer. These newly-published exemption orders will not practically solve the problems faced by the JMB/MC or even the Developer, but will make the whole situation even worse than before.

By carefully studying these exemption orders, I would say that the KPKT has in fact put their focus wrongly on various non-important matters which involving the period of employment contract entered between the MC and their agents or servants, the period of service contracts entered by the JMB, the filing of audited accounts, the opening of JMB maintenance account and sinking fund account and so on.

At the same time, not much exemption was given to the Commissioner of Buildings whereby the COB will have their hands continue tied when dealing with the issues faced by the JMB/MC, especially when dealing with some of the Management Committee members who have overstayed in their office, and trying to buy time for not calling the AGM with a lot of unnecessary excuses.

These exemption orders have also failed to address the issues of conducting virtual AGM which has no place in law. The legality of a virtual AGM is still arguable and it will be challengeable if no exemption was given to ease the legal requirements whereby only a physical general meeting is allowed under the existing law.

By : Ng Wei Aik