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Table of Contents

7.1 INTRODUCTION .................................................................................................. 1

7.2 APPLICATION FOR SUBDIVISION OF BUILDING OR LAND ...................... 1
7.3 STRATA REGISTER ............................................................................................. 1
7.4 PHASED DEVELOPMENT .................................................................................. 2
7.5 COLLECTION OF RENT, FORFEITURE AND VESTING ................................ 2
7.6 MAINTENANCE AND MANAGEMENT OF BUILDINGS AND COMMON
PROPERTY BEFORE THE FORMATION OF MANAGEMENT
CORPORATION UNDER THE STRATA MANAGEMENT ACT 2013 ............ 2
7.6.1 Introduction .................................................................................................... 2
7.6.2 Commissioner of Buildings („COB‟) ............................................................. 3
7.6.3 Strata Management before Existence of Management Corporation .............. 3
7.6.4 Parcels ............................................................................................................ 5
7.6.5 Accessory Parcels .......................................................................................... 5
7.6.6 Common Boundary ........................................................................................ 5
7.6.7 Division and Amalgamation of Parcels ......................................................... 5
7.7 COMMON PROPERTY......................................................................................... 6
7.7.1 Introduction .................................................................................................... 6
7.7.2 Duty for Maintaining & Repairing Pipes, Cables & Ducts ........................... 6
7.7.3 Ownership of Common Property ................................................................... 6
7.7.4 Transfer of Common Property ....................................................................... 6
7.7.5 Common Property Maintenance .................................................................... 7
7.7.6 Grant of Exclusive Use and Enjoyment ......................................................... 7
7.8 THE MANAGEMENT CORPORATION ............................................................. 7
7.8.1 Establishment & Status .................................................................................. 7
7.8.2 Duties of Management Corporation............................................................... 8
7.8.3 Recovery of Sums Due .................................................................................. 8
7.8.4 Decision-making of a Management Corporation ........................................... 9
7.8.5 Management Committees ............................................................................ 10
7.8.6 Building Manager ........................................................................................ 11
7.8.7 Responsibilities and Entitlements of Owners and Occupiers ...................... 12
7.8.8 By-Laws ....................................................................................................... 12
7.8.9 Resolving Disputes and Complaints ............................................................ 13
7.9 VARIATION/TERMINATION OF SUBDIVISION ........................................... 13
7.9.1 Variation ...................................................................................................... 13
7.9.2 Termination .................................................................................................. 14

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Textbooks:

1. A. Maidin and others, Principles on Malaysian Land Law (LexisNexis, Petaling

Jaya 2008), Chapter 13.

2. K.S. Teo, Strata Title in Singapore and Malaysia (4th edn LexisNexis Singapore
2012).

3. Michael J Willis, Management Corporations in Malaysia – Owning Strara-titled

Property under Malaysia’s Strata Management Act 2013 (Sweet & Maxwell
Asia, Petaling Jaya 2013).

Statutes:

1. Strata Titles Act 1985 (Act 318)

2. Strata Titles (Amendment) Act 2013 (Act A1450)

3. Strata Titles (Amendment) Act 2016 (Act A1518)

4. Strata Management Act 2013 (Act 757)

5. Strata Management (Maintenance and Management) Regulations 2015 PU(A)

107/2015

6. Building and Common Properties (Maintenance and Management) Act 2007 (Act
663) (repealed)

Article:

1. Tay Eng Siang, Kuek Chee Ying and Jason Kung Que Seng, “Gated Community
– Modern Lifestyle in Urban Area: Issues and Challenges on Legal Development
in Peninsular Malaysia” [2015] 1 MLJ lxxiii

2. Teo Keang Sood, “Enhancing Strata Management in Malaysia – Selected Aspects

Strata Management Act 2013” [2015] SJLS 251

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7.1 INTRODUCTION

 NLC provisions on subsidiary titles, w.e.f. 1 January 1966, modeled after the
Australian New South Wales Conveyancing (Strata Titles) Act 1961
 Strata Titles Act 1985 (Act 318) („STA‟), came into force on 1 June, 1985
 s 5(1) & (2) STA
 Strata Titles (Amendment) Act 2013 (Act A1450)1
 Strata Titles (Amendment) Act 2016 (Act A1518)2
 Strata Management Act 2013 (Act 757) („SMA‟)3
 Building and Common Properties (Maintenance and Management) Act 2007 (Act
663) („BCPA‟) (repealed)

7.2 APPLICATION FOR SUBDIVISION OF BUILDING OR LAND

 Building or land capable of being subdivided: s 6(1) & (1A) STA; definitions of
„parcel‟, „accessory parcel‟, „storey‟, „strata titles‟: s 4 STA
 The Strata Titles (Amendment) Act 2007 (Act A1290) (w.e.f. 12 April 2007) to
cover „gated community schemes‟: s 6(1) & (1A) STA
 General requirements for application of strata titles
 Application: s 7 STA
 Approving authority

 When compulsory for proprietor to apply for subdivision: s 8(1); definition of

„original proprietor‟: s 4 STA
 „sold or agreed to sell any parcel in such building or land‟
 „super structure stage‟: s 4 STA
 Application for certificate of proposed strata plan: s 8A STA
 Conditions for approval & procedure: ss 9 & 10 STA

7.3 STRATA REGISTER

 s 15(1) STA; index in Form 2 and statement in Form 3

 Documents of strata title: s 16 STA – in respect of parcel [Form 4] and
provisional block [Form 4A], if any
 Registration of register documents of strata title: s 16(5) STA
 Application of ss 89-91 NLC to documents of strata title: s 16(6) STA
 Effect of opening of book of strata register: s 17(1) STA

1
w.e.f. 1 June 2015 , PU(B) 238/2015 all states in Peninsular Malaysia (12 June 2015, PU(B) 238/2015;
1 June 2015 for FT of KL, FT of Labuan and FT of Putrajaya, PU(B) 238/2015.
2
w.e.f. 1 January 2017, PU(B) 528/2016 (for FT of KL, FT of Putrajaya and FT of Labuan except s 29);
all states in Peninsular Malaysia [1 January 2017, PU(B) 532/2016].
3
w.e.f. 1 June 2015 , PU(B) 231/2015 all states in Peninsular Malaysia except Penang (12 June 2015,
PU(B) 248/2015; 1 June 2015 for FT of KL, FT f Labuan and FT of Putrajaya, PU(B) 237/2015.

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 Limited common property and subsidiary management corporations allowed: s

17A STA
 Ownership of common property and custody of IDT: s 17B STA
 Share units of parcels: s 18 STA
 Provisional share units of a provisional block: s 19 STA
 Transfer of ownership of strata titles: s 19A STA (Deleted by Act A1518)

7.4 PHASED DEVELOPMENT

 „Provisional block‟: s 4 STA

 Conditions for application involving provisional block/blocks: s 9A STA
 No dealing in provisional block: s 70(1) & (2) STA
 Application for strata titles upon completion of building: Part IV (s 20 STA)
 Failure to apply under s 20: s 20(9) STA
 Application for certificate of proposed strata plan: s 20A STA
 Application for subdivision of building, etc.: s 20B STA

7.5 COLLECTION OF RENT, FORFEITURE AND VESTING

 New provisions via Act A1518

 Part IVA – Collection of Rent: ss 23A-23J STA
 Part IVB – Forfeiture and Vesting: ss 23K-23P STA

7.6 MAINTENANCE AND MANAGEMENT OF BUILDINGS AND COMMON

PROPERTY BEFORE THE FORMATION OF MANAGEMENT
CORPORATION UNDER THE STRATA MANAGEMENT ACT 2013

7.6.1 Introduction

 Pre-establishment and post establishment of management corporation

 Building and Common Property (Maintenance and Management) Act 2007 (Act
663) (hereinafter the „BCPA‟) w.e.f. 12 April 2007 until the introduction of SMA
2013
 Current law: Strata Management Act 2013 (Act 757) „SMA‟ – An Act to provide
for the proper maintenance and management of buildings and common property,
and for related matters.
 Key terms: s 2 SMA „parcel‟, „accessory parcel‟, „land parcel‟, „share units‟,
„common property‟, „limited common property‟, „developer‟, „original proprietor‟
„proprietor‟, „joint management body‟, „management corporation‟, subsidiary

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management corporation‟, „management committee‟, „By-laws‟, „common seal‟,

„chargee/mortgagee‟, „special resolution‟, „comprehensive resolution‟, „building
or land intended for subdivision into parcels‟, building‟.

7.6.2 Commissioner of Buildings (‘COB’)

 s 4 SMA: Part II Administration of the Act – Appointment of Commissioner of

Buildings, deputies and other officers
 COB shall have charge of the administration of this SMA and may perform such
duties as are imposed and may exercise such powers as are conferred upon him by
this Act or any other written law.

7.6.3 Strata Management before Existence of Management Corporation

 Part IV SMA (ss 7 – 45)

 Application: s 7(1) SMA „developer‟s management period‟
 „allocated share units‟: s 8 SMA

(a) Management by developer before joint management body is established

(Chapter 2 SMA ss 9-16)
 Duties and powers of developer during developer‟s management period: s 9 SMA
o General duties: developer shall be responsible to maintain and manage
properly any building or land intended for subdivision into parcels and the
common property: s 9(1) SMA
o Special duties: s 9(2) SMA and s 9(4) SMA
o Powers: s 9(3) SMA
 Other relevant provisions:
 Developer to establish maintenance account: s 10 SMA
 Developer to establish sinking fund account: s 11 SMA
 Purchaser and developer to pay Charges, and contribution to sinking fund: s 12
SMA
 Prohibition on collection of moneys before accounts are opened: s 13 SMA
 Duties of developer in relation to accounts: s 14 SMA
 Handing over by developer to the joint management body: s 15 SMA
 Balance not transferred shall vest in joint management body: s 16 SMA

(b) Establishment of ‘joint management body’ (JMB’) before the setting up of

management corporation: (Chapter 3 – ss 17-28 SMA)
 JBM shall be established upon the convening of the first AGM of that JMB: s
17(1) SMA; s 17(5) SMA
 Body corporate having perpetual succession an a common seal: s 17(2) SMA
 May sue ad be sued in its own name: s 17(3) SMA

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 s 17(4) SMA: Joint Management Body (JMB) comprising of developer and

purchasers

 Duties of developer to convene first AGM of JMB: s 18 SMA

 First AGM: s 19 SMA
 Duty of JMB to inform its name to COB: s 20 SMA
 Duties and powers of JMB: s 21 SMA
 Joint management committee (JMC): s 22 SMA
 JMB responsible for the maintenance and management of account
o to establish maintenance account: s 23 SMA
o to establish sinking fund account: s 24 SMA
 Parcel owners to pay Charges, and contribution to the sinking fund, to JMB: s 25
SMA
 Duties of JMB in relation to accounts: s 26 SMA
 Dissolution of JMB: s 27 SMA
 Balances not transferred shall vest in Management Corporation: s 28 SMA

(c) Miscellaneous provisions (Chapter 4 Part IV, ss 29-36 SMA)

 Duty of developer in respect of Charges for building or land intended for
subdivision into parcels completed before commencement of this Act: s 29 SMA
 Register of parcel owners: s 30 SMA
 Right of parcel owner or prospective purchaser: s 31 SMA
 By-laws for building or land intended for subdivision into parcels: s 32 SMA
 Recovery of sum as a debt due to JMB: s 33 SMA
 Procedure on recovery of sums due: s 34 SMA
 Recovery of sums by attachment of moveable property: s 35 SMA
 Moneys not required for immediate use: s 36 SMA

(d) Transitional and saving provisions due to the repealed of the Building and
Common Proeprty (Maintenance and Management) Act 2007 (Chapter 5
Part IV, ss 37-45 SMA)
 Reference to repealed Act and savings provision: s 37 SMA
 Existing body and committee: s 38 SMA
 Existing accounts or funds: s 40 SMA
 Incumbent Commissioner of Buildings and other officers: s 41 SMA
 Existing notices, orders, etc.: s 42 SMA
 Pending applications, etc: s 43SMA
 Pending appeals: s 44 SMA
 Existing regulations: s 45 SMA

Cases based on previous laws

 Debir Desa Development Sdn. Bhd. v Pesuruhjaya Bangunan, Kuala Lumpur &
Ors [2009] 9 MLJ 814; [2009] 5 CLJ 563

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 Badan Pengurusan Bersama Desa Skudai Apartmen v Maraya Sdn. Bhd. [2010] 1
LNS 291

7.6.4 Parcels

 s 4 STA: „parcel‟, „land parcel‟

 s 2 SMA: „parcel‟
 Duty to maintain, repair and replace things which form part of a parcel are the
parcel proprietors‟ sole duty.

7.6.5 Accessory Parcels

 s 4 STA: „accessory parcel‟.

 ss 6(1) STA accessory parcel within or outside the building
 Definition of „accessory parcel‟ in s 4 & s 16 STA: no strata title for accessory
parcels.
 s 2 SMA: “accessory parcel”

 s 36 STA: „except in the case of an accessory parcel where no share value shall be
allotted‟
 ss 34(2) & 69 STA: no dealing of rights in accessory parcels independently of the
parcels
 s 79 STA: no adverse possession

 Doreen Tan Ying Ying v Chong Tet On [1986] 1 MLJ 504; [1985] 1 LNS 93

7.6.6 Common Boundary

 s 13(3) STA
o the centre of the floor, wall or ceiling

Issues on boundary of parcels were discussed where reference was made to s 155(3) NLC
(repealed by s 83 Act 318) which is now governed by s 13(3) STA.
Lee Wah Bank Ltd v Chi Liung Holdings Sdn. Bhd. [1984] 2 MLJ 262; [1986] 1 LNS 123
FC

7.6.7 Division and Amalgamation of Parcels

 See Part V of the STA – ss 24-33A

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7.7 COMMON PROPERTY

7.7.1 Introduction

 s 4 STA „common property‟

 s 2 SMA „common property‟
 s 2 SMA „limited common property‟
 s 2 SMA „comprehensive resolution‟

 Golden Connection Sdn. Bhd. v CSH Enterprise Sdn. Bhd. [1995] 3 MLJ 731;
[1995] 1 LNS 71
 I & P Inderawasih Sdn. Bhd. v Binariang Communications Sdn. Bhd. [1998] 6
MLJ 667; [1998] 4 CLJ 705; aff‟d [2003] 3 MLJ 321 CA; [2000] 3 CLJ 789 CA.
 Plaza Pekeliling Management Corporation v IGB Corporation Berhad & Anor
[2003] 1 LNS 210

7.7.2 Duty for Maintaining & Repairing Pipes, Cables & Ducts

 s 59(3) SMA
 By-law 3(2) Third Schedule to Strata Management (Maintenance and
Management) Regulations 2015 PU(A) 107/2015

 Tsui Sai Cheong & Anor v MCST No 1186 (Loyang Valley) & Ors [1996] 1 SLR
603

7.7.3 Ownership of Common Property

 ss 17(1) STA
o MC – proprietor of common property

 undivided share by each proprietor: s 36 STA

 Perbadanan Pengurusan Taman Bukit Jambul v Kerajaan Malaysia [2000] 1

MLJ 399; [2000] 5 CLJ 98

7.7.4 Transfer of Common Property

o no power to transfer any portion of common property which form part of the
building / land on which the building stands.
 s 34(3) STA
o no share / rights in common property can be disposed of except as appurtenant to
the lot or parcel in question.

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 Doreen Tan Ying Ying v Chong Tet On [1986] 1 MLJ 504; [1985] 1 LNS 93

7.7.5 Common Property Maintenance

 Management corporation must manage and properly maintain subdivided building

and common property keeping it in a state of good and serviceable repair: s
59(1)(a) SMA
 Paragraph 3 Third Schedule, Strata Management (Maintenance and Management)
Regulations 2015
 ss 77, 85, 150(2), 59(2), 50(3) SMA
 sinking fund account monies: s 51(2) SMA

(a) Obligations on Owners regarding Common Property and Parcels

 SMA: s 150(2)(b), s 85

(b) Work ordered by Public Authorities relating to Common Property

 s 59(1)(e), (2)(d): SMA

(c) Exclusive Use of Common Property By-Law

 SMA – by-laws may be prescribed by regulations
 See also s 70(2) SMA

7.7.6 Grant of Exclusive Use and Enjoyment

o MC can by agreement with a part parcel proprietor, gives him except use and
enjoyment of part of common property or special privileges in respect of it or part
of it.

7.8 THE MANAGEMENT CORPORATION

7.8.1 Establishment & Status

(a) Overview
 Body corporate – s 17(3) & (4) STA (as amended 2013)
 Legal responsibilities & obligations and broad-ranging powers
 Enforce by-laws: s 59(1)(h) SMA
 Power to do all things „reasonably necessary‟ for the performance of its duties
under SMA and the enforcement of the by-laws: s 59(2)(j) SMA
 Management Corporation, typically its management committee („council‟ under
STA unamended) can take action in a court or (now) before Strata Management
Tribunal (replacing Strata Titles Board). See also s 143 SMA

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7.8.2 Duties of Management Corporation

 Responsible for the maintenance and management of the common properties.

 Imports the duties and powers of the MC as provided under the unamended STA
 Consolidated formal lists of duties and powers: ss 59(1), 62, 70, 72 SMA
 Specific powers: ss 59(2)(a)-(j), 60(3)(c), (4), (5), (6), 74(1), 77(3), 143 SMA

 Third Schedule to Strata Management (Maintenance and Management)

Regulations 2015
 Management corporations have a range of financial powers and responsibilities
and manage significant financial assets on behalf of owners
 s 77 SMA

(a) Financial Duties and Powers of the Management Corporation

 Mandatory duties of MC under SMA: s 59(1) SMA
 Powers of MC: s 59(2), 60(3), 74, 80 SMA
 Sinking fund: s 62 SMA
 Duty to provide to Commissioner or public authority the returns, reports, accounts
and information with respect to its activities and finances: s 62(3) SMA

(b) Financial Duties of the Management Committee

 amended Second Schedule to STA and SMA – duties are described in greater
detail. Examples: paragraph 7 to Second Schedule SMA

(c) Keeping of Finance Data and Accounts Records

 paragraph 7(6)(a) Second Schedule SMA

(d) Owner Contributions – Maintenance Account and Sinking Fund Account

 SMA restructures the STA provisions: ss 60(1), 61(1), 59(1)(b)&(c)
 See also the full list: s 50(3) SMA

 Danaharta Hartanah Sdn. Bhd. v Perbadanan Pengurusan Ocean View Resort

[2009] 1 LNS 1496
 Zarina Tan Sri Jaafar & Ors v Perbadanan Pengurusan Ixora [2010] LNS 253;
[2010] 7 CLJ 254
 Sinwara Sdn. Bhd. v Maris Housing Sdn. Bhd. & Anor [2002] 1 LNS 480
 Danaharta Hartanah Sdn. Bhd. v Perbadanan Pengurusan Ocean View Resort
[2009] 1 LNS 1496

7.8.3 Recovery of Sums Due

 s 75(2) STA

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 SMA retains the provisions of STA (unamended): s 102 SMA

 Power to recover as a debt owed: ss 77, 78 & 79 SMA
 Offences: s 78(3) SMA
 Management corporation can recover a debt due to the maintenance and sinking
fund accounts from owner‟s successor-in-title to the parcel: s 60(4) & 61(4) SMA
 Warrant of attachment of moveable property: s 79 SMA

 John Denis De Silva v Crescent Court Management Corporation [2006] 3 MLJ

631; [2006] 2 CLJ 605
 Ho Siew Choong v On-Kward Realty Sdn. Bhd. & Anor’s case [2000] 8 CLJ 175

7.8.4 Decision-making of a Management Corporation

 A management corporation makes a decision / passes a resolution when its

members vote at a general meeting.
 A management committee (previously council) shall perform the management
corporation‟s duties and conduct its business on its behalf: s 56(1) SMA
 SMA imports from STA (unamended) provision relating to voting pattern
o show of hands and polls: paragraphs 21(1) & 22 Second Schedule SMA
 Resolutions: ordinary, special, unanimous resolution and comprehensive
 No provision in SMA for a management committee to delegate the exercise of
any of its powers or duties to one of its members.

(a) Annual general meetings

 Must hold AGM each year: paragraph 10(1) Second Schedule SMA
 The time between AGMS cannot exceed 15 months: paragraph 10(2) Second
Schedule SMA
 Convene AGM
o 1st AGM: developer – within a month after expiry of „initial period‟ – s
57(1) SMA
o If not, owner can apply to Commissioner of Buildings to appoint a person
to convene: s 57(5) SMA
 Agendas: consideration of accounts, election of management committee of the
management corporation, and the transaction of any other business that might
arise: paragraph 10(1) Second Schedule SMA
 Notice of AGM
o 7 days‟ notice to every owner and every first mortgagee of a parcel:
o 14 days‟ notice to owner: paragraph 12(1) Second Schedule SMA
 Content of notice
o Place, date and time and general nature of business
o more expansive – minimum requirement in paragraph 12(2) Second
Schedule SMA

(b) Extraordinary general meetings

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 General meeting other than AGM

 Convener
o management committee: paragraph 11(2)(c) Second Schedule SMA;
stringent requirements on group of owners (requisitionists) paragraphs
11(3)-(6) Second Schedule SMA
 Agenda: paragraph 13(1) Second Schedule SMA
 Notice: paragraph 12(1) Second Schedule SMA
 Content of notice (same as AGM)

(c) Procedure at general meetings

 chair be voted from those proprietors present: paragraph 16 Second Schedule
SMA
 Chair retains a casting vote: paragraph 17(6) Second Schedule SMA
 Voting: show of hands or by a poll: paragraph 17(6) Second Schedule SMA
 Quorum for general meetings
o 50% in number of all persons overall entitled to vote: paragraph 15(1)
Second Schedule SMA
 Adjournment
o If quorum not achieved for a further half hour, those owners entitled to
vote who are present shall constitute a quorum: paragraph 15(2) Second
Schedule SMA
 Voting at general meetings
o Modifications made in SMA
 Minutes of general meetings
o More detailed in SMA

(d) Resolutions
 Ordinary resolution; unanimous resolution; special resolution; comprehensive
resolution

7.8.5 Management Committees

 Every management corporation must establish an owner representative body

called a management committee: s 56 SMA
 Significant amendments to provisions within STA (unamended) relating to
management committee to place greater accountability on these bodies and
require them to be more transparent in the way they function and make decisions

(a) Duties and powers of management committee

 Shall perform the duties and conduct business of management corporation on its
behalf: s 56(1) SMA
 Subsidiary management committee: s 63(4) SMA
 More comprehensive framework to Second Schedule: s 56(2) SMA
 Key duties:

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o more specific paragraphs 7, 11, 13, 14 Second Schedule SMA

(b) Membership of management committee

 Membership: owners and non-owners
 At least 3 and not more than 14 members: paragraph 2(1) Second Schedule SMA
 Eligibility for election onto a management committee: paragraph 2(7)(a)-(c)
Second Schedule SMA
 Non-eligibility: paragraph 3 Second Schedule SMA

(c) No power of delegation

 SMA removes from management committee any such power to delegate

(d) Duty of management committee members and office-holders

 No specific provisions setting out the duties of members and officers of
management committee.

(e) Specific liability of management committee members

 ss 140, 62 & 72 SMA

(f) Quorum for management committee meetings

 Quorum is at least 50% of the number of committee members when the number is
even or when it is one less: paragraph 4 Second Schedule SMA

(g) Management committee meeting procedures

 chair person to determine timing and location of meetings while not permitting
more than 2 months between meetings: paragraph 5(1) Second Schedule SMA

(h) Minutes of management committee meetings

 Explicitly requires to keep minutes of management committee‟s proceedings:
paragraph 7(1) Second Schedule SMA
 See also: paragraphs 7(2)(a) &(4) Second Schedule SMA

7.8.6 Building Manager

 No specific provision for „building manager‟.

 No statutory provision requiring a management corporation to employ an agent to
undertake the maintenance and management of the common property of a
subdivided building.
 But owner of a management corporation has the power to employ persons/agents
to assist the corporation in performing its statutory duties and functions and
exercising its powers: paragraph 6 Second Schedule STA (unamended)
 SMA specifically vests power in the management corporation to employ or
engage persons/agents to take on the maintenance and management of the
common property: s 59(2)(f) SMA

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 SMA reproduces the provisions from STA (unamended): paragraph 6 Second

Schedule SMA

(a) Appointment of building manager

 „managing agent‟ (narrowly defined) ss 2 & 86 (Part VI) SMA

(b) Duties and powers of building manager

 General principle, a management committee would be expected to ensure that any
such duties and powers conferred on a building manager by the committee
comply with: SMA, subsidiary legislation (regulations), by-laws, and restriction
or direction

7.8.7 Responsibilities and Entitlements of Owners and Occupiers

 Owners are automatically a member of the management corporation, thus have

the responsibilities and obligations as well as entitlements provided for within the
relevant strata statute.

(a) Responsibilities and duties of owners

 not reproduced in SMA
 By-laws will be prescribed within regulations made by Minister: ss 70 & 150
SMA.

(b) Entitlements of owners and others

 SMA specifically provides that no by-law made by the management corporation
shall be capable of operating to prohibit or restrict any lease of, or any other
dealing with, a parcel: s 70(5)(a) SMA
 Examples: voting, entitlement to be represented, taking court action, entitlement
to a management corporation certificate, entitlement to make application to
Tribunal, entitlement to copies of additional by-laws, entitlement to take
complaints to Commissioner of Buildings, entitlement to access the management
corporation‟s financial and other records.

(c) Responsibilities of occupiers and others

 Any additional by-laws by the management corporation bind not just owners but
also mortgagees and the tenants and guests of an owner: s 70(3) SMA

7.8.8 By-Laws

 All management corporations have by-laws for the regulation of the subdivided
building or land.
 These are designed to regulate the control, management, use and enjoyment of a
subdivided building (or land) and the common property.

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(a) By-Laws under the SMA

 Prescribed by Minister: s 70 SMA, Second Schedule
 Strata Management (Maintenance and Management) Regulations 2015 PU(A)
107/2015

7.8.9 Resolving Disputes and Complaints

 SMA provides three avenues: Strata Management Tribunal, Commissioner of

Buildings or courts

(a) No internal dispute resolution mechanism

 SMA maintains that there is no formalized internal dispute resolution process to
address complaints or disputes.

(b) Strata Management Tribunal

 Replaces Strata Titles Board (repealed)
 Established under s 102 in Part IX of SMA
 Jurisdiction: s 105(1) and Part 1 of Fourth Schedule SMA – RM250,000.00
 Duty: to assist the parties to negotiate an agreed settlement: s 112(1) SMA
 Parties eligible to file a complaint: owner, management corporation, managing
agent, purchaser. See the list in s 107(a)-(h)
 Orders: s 117(3) and Part 2 of Fourth Schedule SMA

(c) Taking a complaint to the Commissioner of Buildings

 s 4 SMA
 Parties eligible to complain: owner or other person/body with a registered interest
in a parcel: s 86(1) SMA

(d) Taking action in a court

 Though SMA prescribes when the jurisdiction of the court, while offered an
alternative, is excluded: s 106 SMA
 Court action in respect of by-laws
 Court action in respect of sums owed to the management corporation

(e) Appointment of an administrator

 SMA retains a provision of STA (unamended) enabling a court to appoint an
administrator to manage the management corporation: s 76 SMA

7.9 VARIATION/TERMINATION OF SUBDIVISION

7.9.1 Variation

 s 56 STA in general

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o Damaged, not totally destroyed.

o On whose application
o Power of court to settle a scheme for: reinstatement and continued use.

7.9.2 Termination

 s 57 STA in general
o terminate the subdivision
 s 57(7) STA: who may apply
 Procedure of taking formal possession of any subdivided building or land: s 57A
STA

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