Scenario

I own an unit of service apartment in Cheras. Recently I found out some construction works are carried on in the building. After double check with my neighbour, we found out is the JMB who initial this roofing installation work. However, we did not received any notice or discuss this agenda in meeting previously. Our concern is, can the JMB used our money without our approval? We are the owner, we should be the “boss” to decide on this right?!

Mythbusted.

Installing extended roofing is considered as the upgrading of common property.  JMB is allowed to utilised the fund in sinking fund for such works. 

Section 22(1) of Act 757 allows committee members to perform JMB’s duties and conduct JMB’s business on its behalf as well as exercise any powers of the JMB based on the direction given by JMB at AGM/EGM.  No express provisions in Act 757 require the JMB to seek for consent on utilising the fund in sinking fund.  Therefore, whether utilising the fund for installing extended roofing without consent from the members breach the rules or not depends on JMB’s by laws and/or standard operation procedures.  

If the JMB did not follow the by-laws or SOP fixed by JMB during AGM/EGM, the owners may file a claim in Tribunal.  However if JMB has never passed any laws on such upgrading work or fund spending, the case is not in owners’ favour.

Nevertheless, It always a good practice to get consent from the owners during AGM/EGM for spending the funds especially the sinking fund.  Some restriction or limit on the fund spending with consent shall be passed to safeguard the owners’ interests.

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Thanks!

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