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What is a Management Committee?
A management committee is a governing body that runs the affairs or the management of a strata-titled property i.e. high-rise properties. Its member compromises of the owners who own a parcel on the property.
The management does not automatically come into existence when the property is built. Prior to the formation of the management, Joint Management Body (JMB), a body run by the developer, is managing the affairs of the property. In most cases, the management only comes into existence when the developer is issuing the strata titles to their respective owners. It is then the JMB will cease to exists. Then, the management will take over the duties of managing the property.
All members of the management are elected during the annual general meeting. The maximum number of members in the management per cycle is set at 14. While the minimum members required for the management to function is 3 unless there is only one owner in the property.
Duties and Power of a Management Committee[1]
Duties:
- Maintain and manage whole property i.e. maintain the condition of the property by servicing and repairing it when necessary.
- Determine and impose fees that the residents need to pay to upkeep the common area and the facilities of the property.
- Determine and impose contributions for sinking funds that the residents need to pay for refurbishing the property.
- Ensure that the property is properly insured.
- Comply with the local authority’s direction in relation to the maintenance and improvement of the common property or the abatement of any nuisance on the common property.
- Prepare and maintain proper strata roll i.e. information of the property.
- Ensure that all accounts under the management corporation are audited and that the corporation is able to provide audited financial statements when they are called to do so.
- Enforce all relevant by-laws.
- Undertake the necessary and prompt actions to ensure the proper maintenance of the property.
Powers:
- Collect charges from the owners of the property. Must be proportionate to the share units of their respective parcel on the property.
- Collect sinking funds from the owners of the property. The amount is equivalent to 10% of the charges collected from the owners of the property.
- Authorizes the expenditure for maintaining the property.
- Purchase, hire or acquire movable properties for the use and enjoyment of the owners of the property on the common property.
- Recover the sum expanded from any owners as a result of complying with the local authorities’ direction.
- Hire the appropriate person to undertake the maintenance and management of the property.
- Take all reasonable and necessary actions to ensure that all duties are performed and all by-laws are enforced.
- Create additional by-laws for the maintenance and management of the property when and where it is necessary.
- Borrow the required monies to perform their duty or exercise their power as a management committee and ensure that the money is repaid accordingly.
Membership of a Management Committee
Who can/can not be a member?
Anyone can be elected to join the management committee if:
- they are 21 years old and above;
- Owns a parcel on the property or if their immediate family owns two parcels on the property; and
- Is nominated by the immediate family and/ or is elected by another owner to be a member of the management committee[2].
However, there are exceptions to the rule:
- No one can hold office for more than three consecutive terms[3];
- A proxy appointed by an owner to attend the annual general meeting and election on their behalf cannot be eligible for election[4]. However, the absent owner can still be appointed to the management committee if he has given consent to be appointed to the committee[5];
- An owner or co-owner to a parcel on the property who owes the management body charges or sinking fund 7 days before the election is not eligible for election. This applies to the owner who nominates another as well. In other words, if the person who nominates another has an outstanding amount due to the management body the owner who is nominated is not eligible for election as well[6];
- Only one co-owner is eligible for election[7]; and
- An owner who owns two parcels. His nominee cannot be nominated at the same election nor can they be elected to the same management committee by other owners[8].
Can a person be disqualified whilst being a member of the management committee?
Yes, if the member:
- Resigns, dies, becomes bankrupt or no longer owns a parcel on the property[9];
- Convicted of a certain type of offense[10];
- Conduct generally brings disrepute or discredits the management committee[11];
- Is mentally unstable[12];
- Is a chairman or member of the management committee and absent from three consecutive meetings without obtaining leave from the management committee/ chairman[13];
- No longer represents the company, society or statutory body who owns the parcel on the property[14];
- Owes the management charges or sinking funds for a continuous period of three months[15] or he breaches any by-laws and does not remedy it within 14 days[16].
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1. Section 59, Strata Management Act 2013.
2. 2nd Schedule, Section 2 (7), Strata Management Act 2013.
3. 2nd Schedule, Section 2 (6), Ibid.
4. 2nd Schedule, Section 2 (8), Strata Management Act 2013.
5. 2nd Schedule, Section 2 (13), Ibid.
6. 2nd Schedule, Section 2 (9), Ibid.
7. 2nd Schedule, Section 10 (a), Ibid.
8. 2nd Schedule, Section 10 (b), Ibid.
9. 2nd Schedule, Section 3 (1)(a) – (d), Ibid.
10. 2nd Schedule, Section 3 (1)(e), Ibid.
11. 2nd Schedule, Section 3 (1)(f), Ibid.
12. 2nd Schedule, Section 3 (1)(g), Ibid.
13. 2nd Schedule, Section 3 (1)(h) – (i), Strata Management Act 2013.
14. 2nd Schedule, Section 3 (1)(j), Ibid.
15. 2nd Schedule, Section 3 (1)(k), Ibid.
16. 2nd Schedule, Section 3 (1)(l), Ibid