JUNE 10 — The Coronavirus pandemic 2019 (Covid-19) has caught many Joint Management Body (JMB)/Management Corporation (MC)’s management committee by surprise on the financial impact affecting the proprietors of strata developments especially commercial developments and strata shopping malls.
With the Malaysian government implementing the Movement Control Order (MCO)as a preventative measure , foot traffic in shopping malls and commercial strata properties abruptly came to a grinding halt.
This has drastically affected the economy. Sales dwindled. The proprietors and or their tenants appealed for a waiver or reduction in charges and contribution to the sinking fund to ease the financial burden of the proprietors.
Under the current law, the Strata Management Act 2013 compels a general meeting to be held be it a Annual General Meeting (AGM) or an Extraordinary General Meeting (EGM) to vary any charges or contribution to sinking fund.
On 8th April 2020 the Housing and Local Government Ministry’s Standard Operating Procedure (SOP) in the light of the Covid-19 barred all JMB and MC from holding any AGMs and EGMs.
However this restriction has now change due to the recently announced Recovery Movement Control Order (SOP) by the by Housing and Local Government Ministry on 10th June 2020 that AGM and EGM are allowed provided always that the SOP are met by the management committee of the JMB/MC. Such SOP includes but not limited to thermal scanning of all participants, mandatory usage of mask, social distancing of at least One (1) meter apart at all times, disinfection of meeting venue before and after the meeting, important issues are only to be discussed, and a maximum duration of such meetings to four (4) hours and all participants are to activate the MySejahtera Application on their smart phones during the meeting.
Most Importantly for the safety of all participants, the organizers shall be at liberty to stop the meeting in the event the meeting turns out of control and social distancing is not adhered to by the participants.
In view of the above, all JMB/MC are now able to resolve and pass resolutions at a properly called emergency General Meeting to postpone all unessential expenses and to reduce the charges and contribution to the sinking fund to alleviate the proprietors’ financial burden .
*Ronnie Tan Tuan King is a lawyer practising at Messrs Tan, Goh & Associates.
** This is the personal opinion of the writer and does not necessarily represent the views of Malay Mail.
