05 Mar A JMB’s First AGM
So how to establish a JMB? The first thing to do is to set up an AGM. In simple words, an AGM functions to gather and answer everyone’s concerns and take everyone’s votes into consideration before making a decision. An important event such as establishing a JMB has to be done in an AGM to reduce disputes when the JMB carries out its duties in the future.
Commencement Of The First AGM
So when should this AGM be held? What if the developers take their sweet time in establishing a JMB? No worries, to prevent any delays in setting up a JMB, the government has expressly stated that the JMB’s first AGM has to be held within 12 months after the vacant possession has been delivered. This AGM also has to be conducted by the developers.
What to expect from the developer?
3 months before the AGM, make sure that the developer:
- Appoints an approved company auditor to audit the maintenance and sinking fund account from the day the developer’s management period begins up to at least 3 months before the date of the first AGM.
- Prepare an annual budget for both the management fund and sinking fund, estimated expenditures needed to maintain and manage the development for a period of 12 months starting from the first day of the month following the date of the first AGM.
- Include the agenda of the meeting and the proposed resolution.
Once all of the above are prepared, the developer needs to provide Form 5 of the SMA with a copy of the audited accounts to all Strata Owners. The notice of the AGM has to be displayed at a visible place in the development area.
A list of people who are entitled to vote during the AGM or any proxy attending also has to be put up no less than 48 hours before the AGM. So look out for your names if you are entitled to vote!
What To Do As A Strata Owner?
Settle all charges, contribution to the sinking fund, and any outstanding amounts due and payable to the developer at least 7 days before the 1st AGM. Only by doing so, you will be able to vote during the AGM.
If you’d like to propose any motions in the agenda, you have to present the notice of motion to the developer. Once the developer receives this notice, only then the Developer shall include the motion of the agenda and display it on the notice board.
What If You, A Strata Owner, Are Not Able to Attend The AGM?
Let’s say the AGM clashes with another meeting that you cannot miss, or a last-minute appointment pops up. You can still assign a proxy to attend the AGM in your place, and yes, the proxy can still vote on your behalf. All you need to do is fill up a Form of Proxy, and pass it to the developer no less than 48 hours before the meeting.
What Is Done During The First AGM?
If you are a Strata Owner, do make sure that the developer takes the attendance and chairs the meeting. In this AGM, you can ask the developer any questions you may have. The agenda of the meeting has to include the following:
- To decide and elect the members of the Joint Management Committee (JMC)
- To consider the annual budget prepared by the developer
- To determine the amount to be paid by a parcel owner as of the charges and contribution to the sinking fund
- To determine the rate of interest payable by a parcel owner in respect of any late payment
- To consider the audited accounts as prepared by the developers
- To officially hand over all the duties to the JMB
- To make any additional by-laws
- To consider any other matter related to the maintenance and management of the common property of the building or land intended for subdivision into parcels.
Once the AGM is over, it is the JMB’s duty to inform and register the name of the JMB with the Commissioner within 30 days of the date of the first AGM.
Thus, it suffices to say that as a Strata Owner, though it is not compulsory, it is important for you to attend the AGMs held in your neighbourhood to keep up with all the updates in your neighbourhood.
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