The Subang Jaya City Council (Majlis Bandaraya Subang Jaya) (“
MBSJ”) recently secured a conviction against the joint management body of a stratified condominium development for failing to convene its annual general meeting in 2019. The eight members of the joint management committee were also charged for the offence. Seven of the committee members pleaded guilty and were fined RM2,000 each, whilst the charge against the eighth committee member was withdrawn as he had passed away.
1
According to the media report, this is the first instance where a local authority has successfully prosecuted a joint management body (“
JMB”) and the members of its joint management committee (“
JMC”) for failing to hold an annual general meeting of the former.
The Strata Management (Maintenance and Management) Regulations 2015 requires a JMB to hold an annual general meeting once in each year within 15 months from the date on which the previous annual general meeting was held and renders the failure to do so an offence which is punishable with a fine not exceeding RM50,000 or a term of imprisonment not exceeding three years or both (regulation 34). A member of the JMC may be charged jointly and severally with the JMB and is deemed guilty of the offence if the JMB is found guilty of the offence unless the member of the JMC proves that the offence was committed without his knowledge, consent or connivance and that he has taken all reasonable precautions and exercised due diligence to prevent the commission of the offence (Section 140, Strata Management Act 2013 (“
SMA”)).
This is the second ground-breaking step by the MBSJ in enforcing the provisions of the SMA and its subsidiary legislation. About two years ago, the MBSJ had the distinction of being the first local authority to successfully prosecute the proprietor of a stratified property for failing to comply with an award issued by the Strata Management Tribunal requiring the proprietor to pay outstanding maintenance fees.
2
Alert by Jesy Ooi (Partner) and Eo Shao Dong (Associate) of the Real Estate Practice of Skrine.