From time-to-time, if we were to live in Malaysia we will hear terms like the Joint Management Body (“JMB”), and Management Corporation (“MC”) and Subsidiary Management Corporation (“Sub-MC”). However, like many others, we tend to ignore as all we want is just K.I.S.S. (Keep It Short and Simple) and interact with whichever party managing our neighbourhoods for neighbourhood-related matters.

Despite these bodies being similar, it is important to know their differences as they are related to the background and frontline of your neighbourhood management.

 

JMB vs MC vs Sub-MC

Simply put, JMB is a management body which comprises the developer and owners of strata properties. JMB is an interim body before the formation of MC pending the title of the property being handed to the owner. 

On the other hand, MC is a management body which comprises unit owners who are eligible to attend the Annual General Meeting and who are voted in by other residents. Take note that it can only be established after strata titles of the development have been issued by the land office and at least a quarter (25%) of the aggregate share units has been transferred from the developer to the unit owners.

Lastly, many may not be familiar with this management body ie. Sub-MC. Sub-MC will only be set up when there is a need for separate management such as when the development has limited common properties and its role is specifically for the collection of the maintenance of this limited common property only.

 

Legal Entity

These management bodies are legal entities, meaning that they:

  1. Have perpetual succession
  2. Have a common seal
  3. May sue and be sued in its name

 

What Are Their Main Responsibilities?

These three management bodies are responsible mainly for the followings:

  1. Maintaining an appropriate register of all owners;
  2. Maintain and manage the common shared areas;
  3. Ensuring financial transparency of maintenance accounts;
  4. Compliance and enforcement of by-laws, rules and/or building regulations and notices enforced by local authorities;
  5. The property is insured and protected;
  6. Billing and collection of management fees.

 

Must We Change From JMB to MC?

Now, one may wonder, ‘if my neighbourhood’s management body is still a JMB, is it a must to change it to a MC? After all, both are similar in many ways anyways. The answer is yes. It is a must to dissolve the JMB to set up a MC.

Why? This is because it was expressly stated in the SMA 1985 that a MC has to be set up the moment the strata title issued, and in SMA 2013, they had stated that the JMB has to be dissolved within 3 months from the date of the first MC AGM. Combine these two, it means that the MC has to be set up and the JMB has to be dissolved once the Strata Title is issued. 

 

 

 

 

Disclaimer

The material and information contained in this article is for general information purposes only. The opinions expressed in this article are those of the writer. You should not rely upon the material or information as a basis for making any business, legal or any other decisions and this article is not intended to malign any religion, ethnic group, club, organisation, company, neighbourhood, or individual.

JaGaApp makes no representations as to the accuracy or completeness of any information provided in this article or found by following any link provided in this article. JaGaApp will not be liable for any errors or omissions in all the information provided in this article. JaGaApp will not be liable for any losses, injuries, or damages from the display or use of the information provided in this article.

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