Page 15 - Surveyor 54.3 and 4
P. 15

Mixed Use Development in Malaysia – Issues for Management

                                                                                                  Vol.54  No.3 & 4  2019








                             Special Plan by   EGM on Comprehensive
                    EGM                                        Poll Result  Cert of SMC  Handover
                             Land Surveyor     Resolution




                                              MC                                  MC & SMC



                  Figure 1: Formation of subsidiary management corporation





        the Extraordinary General Meeting   the SMA 2013 (Act 757) Section 64   In view of the Strata Titles Act 1985,
        (EGM) to reach to a comprehensive   (3), the SMC without the prejudice   the power of COB as stated in the
        resolution on a special strata plan   to the subjects in subsection (1), the   STA generally relates to the role of
        which will then clearly define the   SMC shall:                         monitoring the duties of the MC.
        boundaries of the limited common                                        After an application made by the MC,
        properties. The strata plan is then   i.  Establish a SMC maintenance   the COB will have to appoint a person
        submitted by the MC and copy of the    and sinking fund account.        to convene the first AGM of the MC
        comprehensive resolution and poll                                       and the COB are also in a position
        result to the Director of Land & Mines   ii.  Inform proprietors of the SMC to   to make sure that the AGM will be
        who will duly issue a Certificate for   pay charges and sinking fund.   carried out smoothly in addition to
        the establishment of SMC.           iii.  Enforce the by-laws for the   the handling of the accounts and
                                               limited common property.         sinking fund from the JMB period.
        An example of this scenario is a                                        Moreover, the COB is also given
        mixed development of residences     iv.  Manage, control and administrate   the power to instruct in subject to
        and hotels, the residences will be     the limited common property.     any application made by the parcel
        using only certain lifts to access their                                owners or the original proprietor
        residential units, and the central-air   2.9.  Commissioner of          into appointing a managing agent.
        conditioning are exclusive use of                                       However, the COB can replace the
        the hotel proprietors. The Limited   Building                           managing agent if there is any
        Common Property will be a suitable   The Commissioner of Building,      complaint in regards to the existing
        choice for developments with mixed   who is appointed by the state      managing agent. Other duties of
        uses with a mixture of residential   authority, administers and carries   the COB also include in approving
        and non-residential parcels,        out provisions from two statutes    the allocation of share units in the
        especially when different common    which are the Strata Management     multi-storey building intended for
        properties will have different sets of   Act 2013 (Act 757) and Parts V1   subdivision and advice on planning.
        requirements in relation to proper   and VII of the Strata Titles Act 198.   Among the most important roles of
        maintenance and service among       The roles and responsibility of the   a COB is however still to attend to
        these common properties (Tay et al.,   COB is to make sure that the MC is   complaints from various parties in
        2015).                              doing their job by maintaining and   a strata development and resolve
                                            managing the building and common    the disputes through mediation. All
        2.8.1.  Duties and Powers of        property in a good and serviceable   in all, the roles of the COB cover a
        the Subsidiary Management           repair such that the building is in   wide range of jobs as an increasing
        Corporation                         a good and clean condition at all   number of strata developments has
        Other than having the same powers   times in compliance with the laws   been increasing which will obviously
        and duties as the MC except that    and regulations as stated in both of   need a huge and competent number
        SMC only involved with matters in   the statutes stated above (Shukri &   of staff to help in administer, regulate
        relation to the Limited Common      Maidin, 2010).                      and mediate the laws and issues
        Property designated, according to                                       regarding the strata development.
                                                                                (Mohamad & Sufian, 2013).


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