Strata & Building Management
When management is legally liable
Committee members face personal liability under s.26(5) for a JMB and s.62(5) for an MC if they fail to maintain, audit, or permit inspection of accounts — fines up to RM250,000 and imprisonment up to three years. The management body must keep common property in repair under s.21(1)(a) and s.59(1)(a). By-laws exempt the MC from liability for vehicle towing, removal of unauthorised animals, and disposal of unclaimed items, but there is no general provision making the body liable for theft or loss. Claims go to the tribunal under ss.102 and 105(1).
Quick summary
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Buyer action
| Best for | Owners assessing whether their building is competently run, and buyers using management quality as a filter. |
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| 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 is spending your money
What follows takes apart committee members are volunteers but not immune. Knowing where liability starts is what makes good people willing to serve. Property management is a registered profession in Malaysia, and the registration requirement is enforceable.
Personal liability of committee members
Sections 26(5) and 62(5) create personal liability for committee members who breach the accounting obligations. The Act requires accounts to be maintained and audited annually — ss.21(1)(g) and 26(1)(b) for a JMB, ss.59(1)(g) and 62(1)(b) plus Second Schedule paragraph 7(10) for an MC. Section 31 for a JMB and s.73 for an MC require the body to give owners a certificate of the state of the funds on request. Refusing to maintain accounts, refusing to have them audited, or refusing to issue the certificate is an offence, with committee members personally liable to a fine not exceeding RM250,000, imprisonment not exceeding three years, or both. This is the sharpest blade in the Act against a negligent committee.
The duty to keep common property in repair
Section 21(1)(a) for a joint management body and s.59(1)(a) for a management corporation impose an identical obligation: to keep the common property in a state of good and serviceable repair. This is a positive duty — the body must act to maintain, repair and replace components as they age. It is not an insurance against damage and it does not extend to owner-occupied units (that is the owner's role). But the common parts — roof, lift, facade, drains, lift lobby, external plant — fall squarely within it. Neglecting to repair a leaking roof or a broken lift door is a breach.
Where the by-laws shield the MC from liability
The Third Schedule to the 2015 Regulations contains bylaws, and bylaws 25(1)(b) and 25(2)(b) exempt the management corporation from liability for damage or loss caused during vehicle towing or wheel-clamping. Bylaw 14(2)(b) exempts it from liability during removal of an unauthorised animal. Bylaw 20(2) exempts it during disposal of unclaimed items obstructing common property. These three are express exemptions. They are narrow — each covers a specific activity — and they do not mean the MC is liable for theft or loss in general. There is no such general provision.
Claims and the tribunal route
Claims for breach of the management body's duties go to the Strata Management Tribunal under ss.102 and 105(1) of the Act. The tribunal has a monetary limit of RM250,000. The Fourth Schedule Part 1 of the Act includes a claim disputing performance of a duty, so that is the appropriate forum. If you own a unit and the MC has failed to repair the roof, let water in, and damaged your unit, the tribunal is where you file. A claim for damages arising from a committee member's breach of the accounting obligations under s.26(5) or s.62(5) also belongs there, though you may be suing the individual, not just the body.
Verify this against your own building
Verify the managing agent's registration and ask for the appointment terms and the last two years of audited accounts. Those three documents answer most questions about competence.
Buyer checklist
Liability comes in two forms. Personal liability: committee members are liable under ss.26(5) and 62(5) if accounts are not maintained, audited, or accessible for inspection — fine not exceeding RM250,000, imprisonment not exceeding three years, or both. Duty of care: the management body is required to keep common property in a state of good and serviceable repair under s.21(1)(a) for a JMB, s.59(1)(a) for an MC. By-laws under the Third Schedule of the 2015 Regulations exempt the MC from liability for damage or loss during vehicle towing or wheel-clamping (25(1)(b) and (2)(b)), removal of unauthorised animals (14(2)(b)), and disposal of unclaimed items obstructing common property (20(2)). There is no general express provision making the body liable for theft or loss of resident property. Claims are brought to the Strata Management Tribunal under ss.102 and 105(1), with a monetary limit of RM250,000.
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| 1 | If the committee fails to maintain or audit accounts, cite s.26(5) for a JMB or s.62(5) for an MC — it imposes personal liability. |
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| 2 | Confirm the management body has a duty to keep common property in repair under s.21(1)(a) for a JMB, s.59(1)(a) for an MC. |
| 3 | Check whether the by-laws exempt the MC from liability — bylaw 25 for towing, bylaw 14 for animal removal, bylaw 20 for disposal of unclaimed items. |
| 4 | Understand that there is no general provision making the MC liable for theft or loss of resident property unless the management agreement or bylaws impose one. |
| 5 | Know that claims go to the Strata Management Tribunal under ss.102 and 105(1) with a RM250,000 limit. |
Common questions
Are committee members personally liable for accounting failures?
Yes. Sections 26(5) and 62(5) make it an offence for committee members to fail to maintain accounts, have them audited, or permit inspection. Penalties: fine not exceeding RM250,000, imprisonment not exceeding three years, or both.
Is the management body liable for every loss or damage in the building?
No. The body must keep common property in repair under s.21(1)(a) or s.59(1)(a), but by-laws under the Third Schedule exempt it from liability for vehicle towing, animal removal and disposal of unclaimed items. There is no general provision making it liable for theft or loss of resident property.
What is the forum for a claim against the management body?
The Strata Management Tribunal under ss.102 and 105(1), with a monetary limit of RM250,000. The Fourth Schedule Part 1 includes claims disputing performance of a duty.
Does the management body's insurance cover everything?
No. Insurance is part of what the body must arrange, but it does not override the scope of liability. Check your management agreement and bylaws for what the body is actually responsible for.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
Related reading
Use one buyer framework across different news.
Can management cut your water, lock your meter or bar you from the lift over arrears?
Act 757 and the 2015 Regulations give a management body no express power to cut water or electricity to a parcel over arrears. What they do allow is suspension of common facilities and services under by-law 6(5), and deactivation of your access card under by-law 6(4) with a reactivation charge of not more than RM50.
Lewis Conclusion
Know the difference before you argue. Access-card deactivation and facility suspension are lawful and management will use them; a utility cut has no express statutory footing and is worth challenging in writing straight away. Either way, settle the arrears first — every remedy here switches off the moment the account is clear.
Can management rent out, reserve or charge for common-property parking?
A management body can rent out or allocate common-property bays — a JMB under s.23(2)(c), an MC under s.50(2)(c) read with s.60(2) — and can regulate parking through additional by-laws under s.32(3) or s.70(2). But those additional by-laws need a special resolution at a general meeting, not a committee decision.
Lewis Conclusion
Ask one question when a new parking rule appears on the notice board: which special resolution, passed at which general meeting, authorised it? If nobody can answer that, what you are looking at is a committee preference wearing the clothes of a by-law.
Break-in, theft or car stolen from the car park: is management liable?
Act 757 and the Third Schedule by-laws contain no general express provision making a management body liable for theft or loss of a resident's property. Where the by-laws do address liability, they exempt the management corporation — for damage during towing or clamping, removing animals, and disposing of unclaimed obstructions.
Lewis Conclusion
Insure your own contents and do not treat the guardhouse as cover. The Act gives a scheme the power to provide security and the money to pay for it, but it does not turn a security failure into an automatic claim against the building.
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If the committee fails to maintain or audit accounts, cite s.26(5) for a JMB or s.62(5) for an MC — it imposes personal liability.
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Confirm the management body has a duty to keep common property in repair under s.21(1)(a) for a JMB, s.59(1)(a) for an MC.
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Check whether the by-laws exempt the MC from liability — bylaw 25 for towing, bylaw 14 for animal removal, bylaw 20 for disposal of unclaimed items.
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Understand that there is no general provision making the MC liable for theft or loss of resident property unless the management agreement or bylaws impose one.