We have received lots of enquiries regarding the proper rules and procedures during the Annual General Meeting (AGM) conducted by management corporations (MCs) and joint management bodies (JMBs).
To help our readers, we have compiled the questions and seek advice from legal experts and real estate professionals to answer them. Read on to find out how you can protect your rights as a unit owner during the next meeting.
Question 1. How do you vote during an annual general meeting?
Unit owners usually vote via a show of hands, unless there is a unit owner or proprietor who requested for a poll, according to Paragraph 17(1) Second Schedule of the Strata Management Act of 2013.
Read more: Strata Management Tribunal: What You Need to Know?
Question 2. How is a motion or resolution approved at an AGM?
Nearly all motions can be passed if a simple majority (51 percent) of meeting attendees voted in favour. But under the Act, there are special resolutions and unanimous resolutions that require a higher voting threshold of 75 percent or 100 percent, respectively.
Special resolutions include those requiring paying insurance premiums, addition of by-laws or making amendments, and complying with orders from authorities to carry out repairs on the common property or abate any nuisance. Unanimous resolutions cover those related to land acquisitions as well as granting or acceptance of easements.
Question 3. Can a unit owner instantly propose a motion to be voted on during the meeting?
No, a proprietor is only permitted to propose a motion in advance of the meeting. Based on Paragraph 13(1) of the Act, a proprietor is only allowed to do so by submitting a written notice to the registered office of the management corporation at least seven days before the actual meeting. The notice must state the inclusion of the motion in the agenda of the upcoming AGM.
Question 4. Can an owner vote during an AGM if he owes money on his unit, such as the maintenance fee or sinking fund payment?
This is a definite no. According to Paragraph 21(2) Second Schedule of the Act, a unit owner is not qualified to vote if all or any portion of the maintenance fee, sinking fund contribution or other payment due to management corporation in respect to his unit are in arrears on the seventh day before the meeting.
The good thing is that you’re given ample time to pay your arrears as JMBs and MCs are required to provide notice of the AGM at least 14 days before such meeting.
In addition, if you own more than 1 unit in a development, your voting rights for units with no arrears is unlikely to be curtailed if there are no outstanding payments due, as your voting rights for these units is irrefutable. This is because when interpreting an act’s provision, the court is more likely to side with an interpretation that furthers the goal of the law, even if the objective is not explicitly stated in the act.
Question 5. Can I be elected as part of the management committee if I owe money in relation to my unit? What if I own several units but not all have outstanding charges?
Again, a resounding no to both questions. Under Paragraph 2(9)(a) Second Schedule of the Strata Management Act of 2013, a proprietor or co-proprietor of a unit in a strata development is not qualified to be elected for any role if on the seventh day before the meeting if he meets any of the below criteria:
I. All or any portion of the maintenance fee, sinking fund contribution or other payment due to management corporation in respect to his unit are in arrears.
II. The person is nominated by a unit owner that is a juridical entity like a firm or society, but all or any of the nominator’s units are in arrears.
III. The individual is a member of the immediate family of a unit owner who has two or more parcels (similar to units) but all or any of the said units are in arrears, and the individual is nominated by the unit owner.
Question 6. Can a unit owner who’s absent during the AGM be nominated and elected as part of the management committee?
Yes, but there are conditions. Based on paragraph 2(13) Second Schedule of the Act, an absent unit owner can be nominated for election as part of the management committee as long as he has appointed a proxy to represent him during the meeting. Moreover, he must have given his explicit written consent to be nominated and elected for such a role.
Question 7. Are proprietors or unit owners allowed to directly elect the management committee’s officials, such as the treasurer, secretary and chairman?
Generally, no. Paragraph 2(5) Second Schedule of the Act states that only members of the management committee are allowed to elect such officials, and such office bearers must come from members of the management committee themselves. The election must be held after the conclusion of the AGM, and such officers can only hold their position for up to two straight years.
For strata developments, where there are not more than three unit owners, all proprietors are automatically deemed as members of the management committee, and they are most likely to end up as officers. For a management corporation with only one proprietor, that person is the sole person in charge.
Question 8. Has a member of the management committee automatically vacated his position if he had been absent for three consecutive meetings?
Yes, he is automatically deemed to have vacated his position, so long as there is no leave in writing from the chairman, according to Paragraph 3 1(i) Second Schedule of the Act.
Question 9. Is the chairman deemed to have vacated his position if he had been absent for three scheduled meetings?
Yes, the chairman is deemed to have vacated his position if he was not provided leave for his absence by the management committee under Paragraph 3 1(h) Second Schedule of the Act.
Question 10. Does the developer or management corporation need to hire an attorney to issue letter of demand to defaulter or units owners with arrears?
To save on cost, they can just serve Form 11 or Form 20 to these people.
Form 11, the Notice to Demand Payment of Sum Due by Purchaser or Parcel Owner, is used by the property developer of a joint management body. Form 11, Notice to Demand Payment of Sum Due by Proprietor, is utilised by a management corporation.
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(Written by G. Zizan, 28th November 2019)
