Property Management: Ask the experts — Management corporations

Q: Management Corporation or Joint Management Body to set up a company to manage finances? Who is ultimately responsible for the funds?

Under the Strata Management Act 2013 (SMA), the Management Corporation’s (MC) and the Joint Management Body’s (JMB) ultimate function is to properly maintain and manage the subdivided building or land, and the common property.

No provision in the SMA allows the MC, or the JMB to set up a company to manage finances.

Instead of having a company, the MC or JMB may set up a small finance committee led by one of the elected committee members for the purpose of managing the funds efficiently.

Q: We are thinking of opening a nursery using the community hall space in our condominium. Does the Management Corporation need approval from the authorities?

Pursuant to sub-paragraph 3 (4) in the Third Schedule of the Strata Management (Maintenance and Management) Regulations 2015, the Management Corporation/Joint Management Body (MC/JMB) shall “where applicable, manage, maintain and secure suitable operators for any of the common utilities, amenities and services in the common property, such as launderette, convenience store, cafeteria, nursery and others”. They, however, “must be maintained to reasonable standards of safety and health for the convenience, comfort and enjoyment of the proprietors and occupiers”.

Assuming the community hall space is part of the common property, we are of the view that pursuant to the said Sub-paragraph 3 (4), subject to approval from the relevant authority, the JMB/MC has the power to manage and maintain the community hall as a nursery and secure a suitable operator to operate the nursery for the benefit of the parcel owners.

Chris Tan,
Managing partner and founder of Chur Associates; EdgeProp Malaysia’s Best Managed Property Awards 2019 judge and EdgeProp.my Symposium on Excellent Property Management 2019 speaker

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If you have any questions regarding property management, [email protected]. Questions will be answered at the discretion of the editor and the respective experts.

Disclaimer: The answers are only proposed solutions by the expert based on the limited information given in the questions.

This story first appeared in the EdgeProp.my pullout on July 5, 2019. You can access back issues here.