JC3

Hi,

If you own strata title property you may be interested in the following article.

Apartment maintenance fees may go up from April - The Rakyat Post - The Rakyat Post

It gives an update on GST issues, and also suggests that the new Strata Management Act (Act 757) will come into force in June.

Act 757 will replace both Act 663 - The Building & Common Property Act, and Act 318 - The Strata Titles Act.

It's worth noting a new Proxy rule in Act 757 (i.e. That a person may act as proxy for only one proprietor at any one general meeting),

and also that the new Act does not contain the 'Duties of Proprietor' and 'Prohibitions for Proprietor' clauses found in Act 318. If your JMC/MC are relying on these clauses it might be time to refresh your House Rules.

JC3

Cass44

Just a query to the above. Our condo in KL allows no proxy voters at all at the AGM unless they are joint owners, when one may be a proxy for the other. Will the new act allow a proxy to be appointed outside this situation? We are told that the current practice is the law at this time.

Gunnar45

In our condo in Penang we can appoint any other owner as a proxy.
I don't know if someone is allowed to be a proxy for more than one absent owner though....

JC3

Hi Cass44,

This doesn't sound quite right.
I expect your condo is currently governed by Act 318 - The Strata Titles Act.
See the Second Schedule, clauses 14 & 15 regarding proxy and voting rights.
(Copy below, or search for a PDF copy of the full Act online).

Just for example, I would expect a purchaser who is a corporation, to be able to appoint a proxy. It might be worth checking your House Rules for any additional rules about proxies, but your House Rules should not and cannot be inconsistent with Act 318.

I've also added the relevant text from the new Act 757 at the bottom for your reference.

JC3

Proxy
14.
(1) On a show of hands or poll, votes may be cast either personally or by proxy.
(2) An instrument appointing a proxy (who need not be a proprietor) shall
be in writing under the hand of the person making the appointment or his
attorney, and may be either general or for a particular meeting.
Voting rights of proprietor
15.
Each proprietor who is not a co-proprietor shall have one vote on a show
of hands, and on a poll shall have such number of votes as that corresponding
with the number of share units or provisional share units attached to his parcel
or provisional block.
Provided that, except where a unanimous resolution is required, no proprietor
shall be entitled to vote at a general meeting unless all contributions to the
management fund of the corporation in respect of his parcel or provisional block
have been duly paid.
Voting rights of co-proprietors
16.
(1) Co-proprietors may vote by means of a jointly appointed proxy.
(2) In the absence of a proxy, co-proprietors shall not be entitled to vote
on a show of hands except where a unanimous resolution is required:
Provided that any one co-proprietor may demand a poll.
(3) On a poll, each co-proprietor shall be entitled to such number of the
votes attaching to his parcel or provisional block as is proportionate to his
interest in the parcel or provisional block.

Here's the relevant section from the new Act 757 (Second Schedule) for your reference (NB not yet in force as at March 2015) :


Proxy
18.
(1) An instrument appointing a proxy, who need not be a proprietor, shall
be in writing—
(a) under the hand of the proprietor making the appointment or his
attorney, and may be either general or for a particular meeting; or
(b) if the proprietor appointing the proxy is a company, society, statutory
body or any other body, either under seal or under the hand of an
officer or its attorney duly authorized.
(2) An instrument appointing a proxy if made under the hand of an attorney
shall be accompanied with a copy of the power of attorney.
(3) The instrument appointing a proxy shall be deemed to confer authority
to demand or join in demanding a poll.
(4) A person may act as proxy for only one proprietor at any one general
meeting.
(5) The instrument appointing proxy shall be deposited at the registered
address of the management corporation not less than forty-eight hours before
the time for holding the meeting or any adjournment of the meeting at which
the person named in the instrument proposes to vote, failing which the proxy
shall not be entitled to attend or vote.
Powers of proxies
19.
(1) Subject to subparagraph (2), a person duly appointed as a proxy if
entitled to vote otherwise as a proxy, may also vote in his own right.
(2) For the avoidance of any doubt, a proxy cannot exercise a vote in relation
to a matter if the person who appoints the proxy is exercising personally a
power to vote on the matter.
Authority not to be revoked by death of principal, etc.
20.
A vote given in accordance with the terms of an instrument of proxy
shall be valid notwithstanding the previous death or unsoundness of mind or
liquidation of the principal, or revocation of the instrument or the authority
under which the instrument was executed, if no notice in writing of such
death, unsoundness of mind, liquidation or revocation has been received by
the management corporation at the registered office before the commencement
of the meeting or adjourned meeting at which the instrument is used.
Voting rights of proprietor
21.
(1) Each proprietor who is not a co-proprietor shall have one vote in
respect of each parcel on a show of hands, and on a poll, shall have such
number of votes as that corresponding with the number of share units or
provisional share units attached to his parcel or provisional block.
(2) A proprietor shall not be entitled to vote if, on the seventh day before
the date of the meeting, all or any part of the Charges, or contribution to
the sinking fund, or any other money due and payable to the management
corporation in respect of his parcel are in arrears.
Voting rights of co-proprietors
22.
(1) Co-proprietors may vote by means of a jointly appointed proxy or by
appointing anyone of them or any other person.
(2) In the absence of a proxy, co-proprietors shall not be entitled to vote
on a show of hands, except where unanimous resolution is required, provided
that any one co-proprietor may demand a poll.
(3) On a poll, each co-proprietor shall be entitled to such number of the
votes attaching to his parcel or provisional block as is proportionate to his
interest in the parcel or provisional block. Strata Management 149
Proprietor’s representative

23.
A proprietor who is not a natural person may be represented in any
meeting as follows:
(a) if the proprietor is a company, by its representative duly authorized
under its seal or the hand of its director, or by any duly authorized
attorney or by its appointed proxy;
(b) if the proprietor is a company where a receiver or a receiver and
manager is appointed, by the receiver or the receiver and manager
or a person duly authorized by the receiver or the receiver and
manager or by its appointed proxy;
(c) if the proprietor is a company which is under liquidation, by the
liquidator or any person duly authorized by the liquidator or by its
appointed proxy;
(d) if the proprietor is a society, by any one of its office bearers or any
person duly authorized by the society or by its appointed proxy;
or
(e) if the proprietor is a statutory body or any other body, by one of its
members or such other duly authorized person or by its appointed
proxy.

Cass44

Dear JC3,
Thank you so much for your very comprehensive reply. It is kind of you to take so much trouble. I have dug out the minutes of the last AGM, which I was unable to attend as the flat is in my husband's name, and the Act mentioned was 663.

Out of a total of 605 apartments the number purchasers in attendance was 35 because of the proxy rule. They even had to wait half an hour to start due to the lack of a quorum. We are due another one soon so I well copy your information and 'have a go.'

I am pinning my hopes on the new Act where it appears that a proxy will be officially allowed. Thank you again for all your help.

JC3

Hi Cass 44,

You are very welcome.

OK.

The Strata Titles Act 1985 (Act 318) applies to those buildings where a Management Corporation (MC) has already been established after the issuance of individual strata titles.

If individual strata titles have not yet been issued at your building, then your building will be governed by the Building and Common Property (Maintenance and Management) Act 2007 (Act 663) and you will have a Joint Management Committee (JMC) acting on behalf of the Joint Management Body (JMB).

Unfortunately Act 663 is very basic and contains very little about voting by proxy. It does state:
Joint purchasers shall not be entitled to vote except by way of a jointly appointed proxy.

Getting individual strata titles issued can take years in Malaysia. In some cases 10 years or more. So some condos and gated developments are stuck with (basic) Act 663 when they should really be governed by (the more comprehensive) Act 318 if only local councils and the Land Office were more efficient / faster with issuing strata titles.

I suggest you propose that your JMC follow the provisions for proxy voting contained in Act 318 which would be reasonable and make a lot more sense for the proprietors at your condo. That is of course until such time as Act 757 comes into force, replacing both Act 663 and Act 318, possibly June this year.

JC3

Gunnar45

In the new Act 757, item 4 ''A person may act as proxy for only one proprietor at any one general meeting'' may create a problem for the absentees.
Earlier they could just appoint someone in the MC to vote on their behalf.

JC3

Quite so

JC3