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Strata & Building Management

Who is disqualified from the management committee — including for arrears

Arrears on the seventh day before the election disqualify a candidate under paragraph 2(9) of the Second Schedule — as proprietor or co-proprietor, as a corporate proprietor's nominee, or as an immediate family member of a proprietor owning two or more parcels. Proxies, under-21s and rival co-proprietors are out too.

Quick summary

Quick answer

Best for

Owners who want a say in how their building is run, and anyone deciding whether to stand for the committee.

Risk level

Medium

Buyer action

Send Lewis your building name, the charge you pay and what you are trying to decide, and he will tell you what to check first.

Who actually decides

What follows takes apart an owner in arrears cannot sit or vote. That single rule decides many contested committee elections. A strata scheme is a compulsory democracy: the voters are the payers, and turnout decides your cost of ownership.

The seventh day is the date that counts

Paragraph 2(9) of the Second Schedule fixes the test at the seventh day before the election. That is a deliberate cut-off: it stops a candidate settling arrears on the morning of the meeting to qualify, and it gives the scheme a verifiable date to check the register against. If you are planning to stand, work backwards from the meeting date and make sure the payment has cleared and been recorded well before day seven, not on it.

Three ways the arrears rule reaches you

The paragraph catches three positions. As a proprietor or co-proprietor, where all or any part of the charges or sinking fund contribution for that parcel is in arrears. As the nominee of a corporate or body proprietor, where the same is true of that parcel. And as an immediate family member of a proprietor owning two or more parcels, where all or any part of the charges or sinking fund contribution in respect of any of those parcels is in arrears. That third limb is the one that surprises people: a family member standing for the committee can be disqualified by arrears on a parcel they have nothing to do with.

The other disqualifications

Three more sit alongside it. Paragraph 2(7) excludes anyone under twenty-one years of age, and anyone who is not a proprietor, an authorised nominee or an eligible immediate family member. Paragraph 2(8) excludes a proxy appointed by a proprietor — so the person you send to vote on your behalf cannot also be elected. Paragraph 2(10) excludes a co-proprietor of a parcel where another co-proprietor of that same parcel is also a candidate at that election, which prevents one parcel putting two of its owners forward for the same committee.

Verify this against your own building

Check your own scheme's by-laws and the notice actually issued for your meeting — deadlines and quorum rules are statutory, but schemes add valid variations. Where a decision looks irregular, put the objection in writing before the meeting, not after.

Buyer checklist

The arrears test bites on the seventh day before the election, not on the day itself. Paragraph 2(9) disqualifies a candidate where all or any part of the charges or sinking fund contribution for the parcel is in arrears — whether they stand as proprietor or co-proprietor, as the nominee of a corporate or body proprietor, or as an immediate family member of a proprietor who owns two or more parcels. Separately, paragraph 2(7) excludes anyone under twenty-one or who is not a proprietor, authorised nominee or eligible family member; 2(8) excludes a proxy; and 2(10) excludes a co-proprietor where another co-proprietor of the same parcel is also standing.

1

Count back seven days from the election date — that is when the arrears test applies.

2

Settle every parcel you are connected to, and get a dated receipt for each.

3

If you are standing as a family member of a multi-parcel owner, check all of that owner's parcels, not just yours.

4

Do not appoint yourself as someone's proxy if you intend to stand — paragraph 2(8) excludes proxies.

5

If a co-proprietor of your parcel is also standing, paragraph 2(10) means only one of you can.

Common questions

When is the arrears test applied?

On the seventh day before the election, under paragraph 2(9) of the Second Schedule.

Can I pay off the arrears on the day of the AGM and still stand?

No. The test is fixed at the seventh day before the election, so a payment made afterwards does not restore eligibility for that election.

I am standing as a family member of an owner with several units. Does that matter?

Yes. Paragraph 2(9) disqualifies an immediate family member of a proprietor owning two or more parcels where all or any part of the charges or sinking fund contribution for any of those parcels is in arrears.

Can a proxy be elected to the committee?

No. Paragraph 2(8) makes a proxy appointed by a proprietor ineligible for election.

My co-owner and I both want to stand. Can we?

Not at the same election. Paragraph 2(10) disqualifies a co-proprietor where another co-proprietor of the same parcel is also a candidate.

Lewis Chong REN 69566

Lewis Chong

REN 69566 · IQI Global

Property advisor helping KL, JB, and Penang buyers make data-backed property decisions.

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Send

Count back seven days from the election date — that is when the arrears test applies.

Send

Settle every parcel you are connected to, and get a dated receipt for each.

Send

If you are standing as a family member of a multi-parcel owner, check all of that owner's parcels, not just yours.

Send

Do not appoint yourself as someone's proxy if you intend to stand — paragraph 2(8) excludes proxies.

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