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STRATA TITLES (AMENDMENT) ACT 2001
AMENDING ACT A1107

 

Date of Royal Assent 13 June 2001

Date of publication in the Gazette: 28 June 2001
Date of coming into force: 1 December 2001 PU(B)560/2001
 

An Act to amend the Strata Titles Act 1985.

ENACTED by the Parliament of Malaysia as follows:
 

1. Short title and commencement.

(1) This Act may be cited as the Strata Titles (Amendment) Act 2001.

(2) This Act shall come into operation in each State on such date as may be appointed by the Minister, with the approval of the National Land Council, in relation to that State by notification in the Gazette, and the Minister may, with the approval of the National Land Council, appoint different dates for different provisions of this Act.

(3) This Act shall come into operation in the Federal Territory of Kuala Lumpur on a date to be appointed by the Minister by notification in the Gazette, and the Minister may appoint different dates for different provisions of this Act.

2.  Amendment of section 4.

The Strata Titles Act 1985 [Act 318], which in this Act is referred to as the "principal Act", is amended in section 4-

(a) by inserting after the definition of "aggregate share units" the following definition:

"Board" means the Strata Titles Board established under section 67A;';

(b) in the definition of "Director", by substituting for the words "Land Executive Committee" the words "Land Administrator"; and

(c) by substituting for the definition of "Director of Survey" the following definition:

"Director of Survey" means the Director of Survey and Mapping for the State or the Federal Territory and includes a Deputy Director of Survey and Mapping;'.

3.  Amendment of section 8.

Subsection 8(5) of the principal Act is amended by substituting for the words "a fine not exceeding five thousand ringgit and to a further fine not exceeding one thousand ringgit for each day the offence continues to be committed" the words "a fine of not less than ten thousand ringgit but not more than one hundred thousand ringgit and to a further fine of not less than one hundred ringgit but not more than one thousand ringgit for each day the offence continues to be committed".

4.  Amendment of section 15.

Section 15 of the principal Act is amended-

(a) in paragraph (2)(b), by substituting for the words "subsection (4)" the words "subsections (4), (5) and (6)";

and

(b) by inserting after subsection (4) the following subsections:

"(5) The Registrar shall, in the case of private caveats or Registrar's caveats appearing on the register document of title to the lot, if satisfied that such caveats affect only particular parcels created on the subdivision, endorse such caveats on the register documents of title to the parcels in question.

(6) Where the Registrar is unable to ascertain to his satisfaction the caveats which affect the particular parcels, he may, instead of setting out or summarising them, endorse a statement in Form 3 to the effect that the lot is so subject to the caveats entered on the register document of title to the lot:

Provided that the Registrar may at any time thereafter, if it can be ascertained to his satisfaction that such caveats relate to particular parcels, endorse such caveats on the register documents of title to the parcels in question.".

5.  Amendment of section 25.

Section 25 of the principal Act is amended by inserting after subsection (2) the following subsection:

"(3) Where the division of a parcel or the amalgamation of two or more parcels results in the creation of any additional or new common property, the proprietor shall obtain the written consent of the management corporation before making the application under section 28 for the approval of the Director.".

6.  Amendment of section 27.

Section 27 of the principal Act is amended-

(a) by inserting after paragraph (d) the following paragraph:

"(da) that, where the division or amalgamation results in the creation of additional common property or new common property, the written consent of the management corporation to the making of the application has been obtained;";

(b) by deleting the word "and" at the end of paragraph (e);

(c) by substituting for the full stop at the end of paragraph a semicolon and the word "and"; and

(d) by inserting after paragraph (f) the following paragraph:

"(g) that the proposed share units assigned to the new parcels by the proprietor in his application in Form 6 are equitable.".

7.  Amendment of section 28.

Subsection 28(1) of the principal Act is amended-

(a) by deleting the word "and" at the end of paragraph (d); and

(b) by inserting after paragraph (d) the following paragraph:

"(da) the written consent of the management corporation to the making of the application as required under paragraph (da) of section 27; and".

8.  New section 33A.

Part V of the principal Act is amended by inserting after section 33 the following section:

"33A. Effect of registration in respect of common property created upon division or amalgamation.

Upon the registration of the strata title or titles to the new parcel or parcels upon the division or amalgamation, the parts of any parcel which are created as common property shall be deemed to form part of the common property in relation to all the parcels comprised within the subdivided building.".

9.  Amendment of section 39.

Section 39 of the principal Act is amended by inserting after subsection (2) the following subsection:

"(2A) The management corporation may apply to the Registrar for a certificate certifying that the management corporation is a body corporate constituted under this Act on the day specified in the certificate.".

10.  Amendment of section 41.

Subsection 4 1(5) of the principal Act is amended by inserting after paragraph (b) the following paragraph:

"(ba) to determine the portion of contribution to the management fund to be paid into the special account to be maintained under section 46;".

11.  New section 41A.

The principal Act is amended by inserting after section 41 the following section:

"41A. Contributions by parcel proprietors.

Where the first annual general meeting of a management corporation in respect of a subdivided building has not yet been convened, the proprietor of each of the parcels or provisional blocks, if any, in the subdivided building shall, commencing from the opening of the book of the strata register in respect of the subdivided building, pay to the management corporation any such sum which has been approved by the Director as the amount payable for the maintenance of the subdivided building and the common property and such sum shall be deemed to be the amount determined by the management corporation as the contributions payable by the proprietors to the management fund of the management corporation.".

12.  Amendment of section 44.

Subsection 44(6) of the principal Act is amended by substituting for the words "subsection (4)" the words "subsection (2)".

13.  Amendment of section 45.

Subsection 45(3) of the principal Act is amended by substituting for the words "For the purpose of" the words "Subject to section 41A, for the purpose of".

14.  Amendment of section 46.

Section 46 of the principal Act is amended by inserting after the word "determined" the words "under paragraph (ba) of subsection (5) of section 41".

15.  Substitution of section 50.

The principal Act is amended by substituting for section 50 the following section:

"50. Director may appoint managing agent to exercise or perform certain powers, etc..

(1) The Director may, upon complaints by a proprietor or any other person or body having a registered interest in a parcel that the management corporation has not functioned satisfactorily, if satisfied that it is in the interests of the parcel proprietors in the subdivided building concerned, appoint a managing agent to exercise the powers and discharge the duties and functions of the management corporation.

(2) Where the Director makes the appointment under subsection (1), he may also specify that the managing agent shall have and may exercise and discharge-

(a) all the powers, duties and functions of the management corporation for the subdivided building to which the appointment relates or of the council of that management corporation;

(b) any one or more of those powers, duties or functions specified in the appointment; or

(c) all of those powers, duties and functions except those specified in the appointment.

(3) The expenses incurred by the managing agent shall be charged on the management fund of the management corporation.".

16.  Amendment of section 53A.

Section 53A of the principal Act is amended-

(a) by inserting after subsection (2) the following subsection:

"(2A) If the management corporation encounters difficulties in executing the warrant, it may seek the assistance of the Director, and in providing such assistance, the Director may request for the assistance of a police officer not below the rank of Inspector."; and

(b) by inserting after subsection (3) the following subsections:

"(3A) Any tenant, sub-tenant, or occupier who, in order to avoid the attachment or sale of the movable property for non-payment of any sum due to the management corporation by the parcel proprietor, pays such sum may thereafter, in the absence of any written agreement to the contrary, deduct the amount so paid by him from the rent due or to become due by him to the parcel proprietor, and may retain possession until such amount has been fully reimbursed to him whether by deduction from the rent or otherwise.

(3B) The receipt issued by the management corporation for any amount so paid by any such tenant, sub-tenant or occupier shall be deemed an acquittance in full for the like amount of rent.".

17.  New section 55A.

Part VII of the principal Act is amended by inserting after section 55 the following section:

"55A. Failure to pay contributions.

Where any proprietor has failed to pay the contribution demanded by the management corporation in the manner set out in section 53, the proprietor shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit and to a further fine not exceeding fifty ringgit for every day during which the contribution remains unpaid after conviction.".

18.  Amendment of section 64A.

Section 64A of the principal Act is amended-

(a) by inserting after subsection (1) the following subsection:

"(1A) Where the original proprietor has transferred parcels having more than half of the total share units of all the parcels, he may also apply to the Director under subsection (1) for an order that a management corporation be established."; and

(b) by substituting for subsection (2) the following subsection:

"(2) Upon receiving the application, the Director-

(a) in the case of an application by proprietors other than the original proprietor, if satisfied that the original proprietor has failed to discharge his duties or exercise his powers satisfactorily; or

(b) in the case of an application by the original proprietor, if satisfied that good grounds exist in support thereof,

may order that a management corporation be established.".

19.  New Part IXA.

The principal Act is amended by inserting after Part IX the following Part:

"PART IXA

STRATA TITLES BOARD

67A. Strata Titles Board.

(1) There shall be a Strata Titles Board which shall consist of a President and such number of Deputy Presidents and other members as are appointed in accordance with this section.

(2) The President, Deputy Presidents and members of the Board shall be appointed by the State Authority.

(3) No person shall be appointed as the President or a Deputy President of the Board unless he is a qualified person within the meaning of the Legal Profession Act 1976 [Act 166].

(4) Not more than twenty persons shall be appointed by the State Authority to be members of the Board in addition to the President and Deputy Presidents of the Board.

(5) The names of the President, Deputy Presidents and members appointed under this section shall be notified in the State Gazette.

(6) Except where otherwise provided by this Act, the Board shall, for the purpose of hearing and determining a dispute of which the Board has cognizance or any other matter with respect to which the Board has jurisdiction under this Act, be constituted by a division of the Board consisting of-

(a) the President or a Deputy President of the Board as chairman; and

(b) two other persons to be selected by the chairman from amongst the members of the Board appointed under subsection (4).

67B. Tenure of office.

(1) A member of the Board shall be appointed for a term of two years but shall be eligible for reappointment.

(2) A member of the Board may resign by letter addressed to the Director.

(3) The State Authority may at any time revoke the appointment of any member of the Board and fill any vacancy in its membership.

67C. Continuation of hearing.

(1) If after the Board has been constituted in relation to a dispute or matter but before the dispute or matter has been determined a member of the Board is unable to hear or continue to hear or to determine the dispute or matter or ceases to be a member of the Board, as the case may be, whether by death or otherwise, the Board shall be reconstituted in accordance with subsection (6) of section 67A and the Board as reconstituted shall hear and determine the dispute or matter or so much of the dispute or matter which has not been determined, and in so hearing may have regard to the evidence given, the arguments adduced and any interim order made during the previous hearing.

(2) Notwithstanding subsection (1) and section 67B, a member of the Board who resigns or whose appointment expires during the course of any proceedings of the Board shall for the purpose of such proceedings and until their determination be deemed to remain a member of the Board and shall continue to hear and determine the dispute or matter which is the subject matter of the proceedings.

67D. Bar to actions.

No action shall lie against any member of the Board in respect of anything done or omitted to be done by him in good faith in the execution or purported execution of his functions, powers and duties under this Part.

67E. Allowances.

(1) A member of the Board may be paid such allowances as may be prescribed under this Act in respect of each day on which he is engaged in the hearing and determining of a dispute or matter.

(2) In addition to the allowance provided for in subsection (1), the President and the Deputy Presidents of the Board may be paid such allowances as may be prescribed under this Act.

67F. Board to carry out its work expeditiously.

(1) The Board shall carry out its work expeditiously and shall make a finding or determination within 6 months from the date it is constituted.

(2) The period specified in subsection (1) may be extended by the President or a Deputy President of the Board where the dispute or matter involves complex issues.

67G. Proceedings of Board.

(1) The proceedings of the Board shall be open to the public and minutes of the Board including a note of any oral evidence given before the Board shall be kept by the President of the Board.

(2) The members of the Board shall be deemed to be public servants within the meaning of the Penal Code [Act 574].

67H. Order revoking amendment of by-law.

(1) Where, pursuant to an application by any person entitled to vote at a meeting of the management corporation (including a first chargee and chargor of a parcel), the Board considers that, having regard to the interest of all parcel proprietors in the use and enjoyment of their parcels or the common property, an amendment or revocation of an additional by-law or addition of a new additional bylaw should not have been made or effected, the Board may order that the amendment be revoked, that the revoked additional by-law be revived or that the new additional by-law be revoked.

(2) When making an order under subsection (1) in respect of an additional by-law referred to in subsection (2) of section 44, the Board may direct the management corporation to pay compensation to the proprietor of the parcel adversely affected by the additional by-law.

(3) The compensation ordered to be paid under subsection (2) is recoverable by the parcel proprietor as a debt in any court of competent jurisdiction.

67I. Order invalidating purported by-law.

Where, pursuant to an application by any person entitled to vote at a meeting of a management corporation (including a first chargee and a chargor of a parcel), the Board finds that the management corporation has made an additional by-law but that the management corporation did not have the power to make the additional by-law the Board may make an order declaring the additional bylaw to be invalid.

67J. Power of Board to invalidate proceedings.

(1) Where, pursuant to an application by a parcel proprietor or first chargee of a parcel, the Board considers that the provisions of this Act have not been complied with in relation to a meeting of the management corporation, the Board may by order-

(a) invalidate any resolution of, or election held by, the persons present at the meeting; or

(b) refuse to invalidate any such resolution or election.

(2) The Board shall not make an order under subsection (1) refusing to invalidate a resolution or election unless it considers-

(a) that the failure to comply with the provisions of this Act did not prejudicially affect any person; and

(b) that compliance with the provisions of this Act would not have resulted in a failure to pass the resolution, or have affected the result of the election, as the case may be.

67K. Order varying certain rates of interest.

Where, pursuant to an application by a parcel proprietor for an order under this section, the Board considers that the management corporation for the subdivided building to which the application relates has determined an unreasonable rate as the rate of interest payable for the late payment of a contribution levied under section 45, the Board may order that no interest be so payable or that the interest so payable be at a rate specified by the Board instead of the rate so determined.

67L. Order where voting rights denied or due notice of item of business not given.

(1) Where, pursuant to an application by a person under this section, the Board is satisfied that a particular resolution would not have been passed at a general meeting of a management corporation but for the fact that the applicant-

(a) was improperly denied a vote on the motion for the resolution; or

(b) was not given due notice of the item of business pursuant to which the resolution was passed,

the Board may order that the resolution be treated as a nullity on and from the date of the order.

(2) Where-

(a) an order under subsection (1) is made in respect of a resolution making an additional by-law amending, adding to or revoking another additional by-law; and

(b) the additional by-law made pursuant to that resolution is in force,

the additional by-law shall, subject to its having been or being amended, added to or revoked under subsection (2) of section 44, have force and effect on and from the date the order is so made to the same extent as it would have had if the resolution had not been passed.

(3) An application for an order under subsection (1) may not be made after 21 days after the date of the meeting at which the resolution was passed.

67M. Order varying the amount of insurance to be provided.

Where, pursuant to an application made by a parcel proprietor or the chargee of a parcel, the Board considers that the amount for which the management corporation for the subdivided building concerned has insured the subdivided building under subsection (1) of section 43 is not reasonable, the Board may order the management corporation to vary that amount to a specified amount.

67N. Board may settle disputes on the costs of repairs etc..

The Board may, pursuant to an application by a management corporation, a parcel proprietor or a chargee in possession of a parcel, make an order for the settlement of a dispute, or the rectification of a complaint with respect to any defects in a parcel, a subdivided building and its common property or the liability of a parcel proprietor to bear the costs of or any part thereof for any work carried out by a management corporation in the exercise or performance of its powers, duties or functions conferred or imposed by this Act and the by-laws in connection with the subdivided building.

67O. Order to make or pursue insurance claim.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building to which the application relates has unreasonably refused to make or pursue an insurance claim in respect of damage to the building or any other property insured by the management corporation under this Act, the Board may order the management corporation to make or pursue the claim.

67P. Order to supply information or documents.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building or any member of its council to which the application relates, or managing agent for the subdivided building, has wrongfully withheld from the applicant information to which he is entitled under this Act, the Board may order that management corporation, managing agent, or any member of the council to supply or make available the information to the applicant.

67Q. Order with respect to certain consents affecting common property.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building to which the application relates has unreasonably refused to consent to a proposal by that parcel proprietor to effect alterations to the common property, the Board may order that management corporation to consent to the proposal.

67R. General provisions relating to orders under this Part.

(1) An order made by the Board may include such ancillary or consequential provisions as the Board thinks fit including costs to be paid by the applicant, a management corporation or any person against whom the order is made or costs to be paid by a party for making a frivolous application to the Board.

(2) For the purpose of securing compliance with an order under this Part, the Board may order a management corporation or any member of its council, a managing agent or any other person having registered interest in a parcel or an occupier to do or refrain from doing a specified act with respect to a subdivided building and the common property.

67S. Representation before the Board.

(1) An applicant for an order under this Part may appear before the Board or may be represented by counsel who may examine witnesses and address the Board on behalf of the applicant.

(2) A management corporation appearing before the Board may be represented by counsel or a member of the council of the management corporation.

67T. Witnesses may be summoned before the Board.

(1) The Board may summon any person to attend before the Board at the time and place specified in the summons to give evidence and to produce books, documents or writings in his custody or control which he is required by the summons to produce.

(2) A person served with a summons under subsection (1) who, without reasonable excuse, disobeys the summons shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding six months or to both.

(3) A person shall not be bound to produce any books, documents or writings not specified or otherwise sufficiently described in the summons or which he would not be bound to produce upon a subpoena for production in a court.

67U. Board may administer oath or affirmation.

(1) The Board may administer an oath or affirmation to a person appearing as a witness before the Board, whether or not he has appeared in answer to a summons, and may examine the witness upon oath or affirmation.

(2) A person appearing as a witness before a Board-

(a) shall not refuse to be sworn or to make an affirmation;

(b) shall not refuse to answer any question relevant to any proceedings before the Board which are put to him by the Board or by any person entitled to appear before the Board in those proceedings; and

(c) shall not knowingly give false testimony in any evidence given by him to the Board.

(3) A witness before a Board shall have-

(a) the same protection; and

(b) in addition to the penalties provided by this Act, the same liabilities,

as he would have had if he had been a witness before a court.

67V. Penalty for contravention of certain orders.

(1) A person who contravenes an order made by the Board to do or refrain from doing a specified act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

(2) A document purporting to be a copy of an order made by the Board shall be admissible in evidence and shall, until the contrary is proved, be deemed to be an order made by the Board.

67W. Time when order takes effect.

Except where provision is otherwise made by this Act or to the extent that the Board specifies in an order, an order of the Board shall take effect when a copy of the order, certified by the Board to be a true copy, is served-

(a) except as provided in paragraph (b), on the management corporation for the subdivided building to which the order relates; or

(b) where the order requires a person to do or refrain from doing a specified act, on that person.

67X. Appeal to the High Court on point of law.

(1) No appeal shall lie to the High Court against an order made by the Board under this Part except on a point of law.

(2) Where an appeal is made to the High Court, the Court may confirm, vary or set aside the order or remit the order to the Board for reconsideration together with such directions as the Court thinks fit.

(3) The filing of a notice of appeal shall not operate as a stay of execution of an order or suspend the effect of an order unless the Board or the High Court, as the case may be, otherwise orders and any stay or suspension of an order may be subject to such conditions as the Board or High Court thinks fit.".

20.  New section 80A

The principal Act is amended by inserting after section 80 the following section:

"80A. Prosecution.

No prosecution shall be instituted for an offence under this Act or any rules made under this Act without the consent in writing of the Public Prosecutor.".

21.  Amendment of section 81.

Subsection 81(1) of the principal Act is amended by inserting after paragraph (a) the following paragraphs:

"(aa) the fees to be paid in respect of applications made to the Board under this Act and the remission of any such fees;

(ab) the practice and procedure of the Board;".

22.  Amendment of First Schedule.

The First Schedule to the principal Act is amended-

(a) in Form 1-

(i) by substituting for paragraph 2 the following paragraph:

"2. The intended subdivision is to be into .............. Parcels, * ..............Accessory parcels and ...................provisional block/s, as specified in the appended schedule, according to the boundaries which, in relation to each storey, are shown in the ..............*storey plan/s attached."; and

(ii) by inserting after paragraph 2 the following paragraph:

"2A. The building/s erected thereon, including any provisional block, are used for the following purposes:

..................................."

(b) in Form 6, by inserting after paragraph (d) the following paragraph:

"(e) a letter of consent from the management corporation to the making of this application."; and

(c) in Form 7, by inserting after paragraph (d) the following paragraph:

*(e) a letter of consent from the management corporation to the making of this application.".

 

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