Strata & Building Management
What your building manager can decide alone, and what needs the committee or a general meeting
The manager decides day-to-day operations — hiring cleaners, paying bills, scheduling repairs. The manager does not decide the charge rate (s.25(3) for a JMB, s.60(3) for an MC — that is by general meeting), cannot make bylaws (special resolution under s.32(3) or s.70(2)), and cannot alter the sinking fund below 10% minimum. A COB-appointed agent acts under the COB's control and general directions under s.89(2).
Quick summary
Quick answer
Best for
Risk level
Buyer action
| Best for | Owners assessing whether their building is competently run, and buyers using management quality as a filter. |
|---|---|
| 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. |
The people between you and the building
This post works through spending limits and delegation are set by law and by the appointment terms, not by how confident the manager sounds. The manager spends money they do not own, chosen by volunteers, supervised by owners with no time. That is the whole problem.
What the manager can decide alone
A manager's ordinary role is to handle day-to-day operations and spend within the approved budget. That includes hiring and directing staff, arranging contractors for repairs and maintenance, paying suppliers and utilities, and managing the records. It includes deciding when to call a plumber or electrician, what materials to buy, and how to schedule work within the calendar and budget that the body has already set. The manager implements the decisions of the committee and the general meeting; they do not reverse those decisions or make them independently.
The charge rate — set at the general meeting
Section 25(3) for a joint management body and s.60(3) for a management corporation are identical in substance: the rate of charges is determined by the body at a general meeting. During the developer's management period the developer determines it, subject to review by the COB on application by a dissatisfied purchaser. Once the residents have taken control, the rate is set by an ordinary resolution at the general meeting. A manager who argues about the level and proposes a different figure is overstepping — that conversation happens in the general meeting, not in the manager's office.
Bylaws — special resolution only
Section 32(3) for a JMB and s.70(2) for an MC are the routes to make or amend bylaws: a special resolution at a general meeting. A special resolution is defined in s.2 as one requiring at least 21 days' written notice and not less than three-quarters of the valid votes cast. A manager cannot propose bylaws, amend them, or suspend them. That power lies exclusively in a vote of the residents, and only when three-quarters agree.
The sinking fund minimum — 10%, fixed
Sections 12(4), 25(4), 52(3), 61(3) and 68(3) all set a single floor: the sinking fund contribution is a minimum of 10% of the charges. It may be raised higher at a general meeting by ordinary resolution but never below 10%. A manager cannot reduce it. The body can raise it, but only by meeting the residents and putting it to a vote. This minimum is not discretionary — it exists because buildings need money set aside for the large capital repairs that come in seven- to ten-year cycles.
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
The division is real. A manager handles day-to-day work — repairs, contractors, spending within budget. But the charge rate is set by general meeting under s.25(3) for a JMB and s.60(3) for a management corporation. Additional bylaws are made by special resolution under s.32(3) for a JMB, s.70(2) for an MC. The sinking fund minimum is fixed at 10% — s.12(4), s.25(4), s.52(3), s.61(3), s.68(3). A special resolution requires 21 days' written notice and not less than three-quarters of the valid votes cast. A COB-appointed managing agent operates under s.89(2), under the COB's control and general directions, and has no professional or pecuniary interest in the scheme under s.87(1).
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| 1 | Confirm the charge rate was set by general meeting resolution, not by the manager unilaterally. |
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| 2 | Check that any additional bylaws are supported by a special resolution with at least three-quarters of valid votes, per s.32(3) or s.70(2). |
| 3 | Verify the sinking fund is at least 10% of charges — it cannot be lowered below that floor. |
| 4 | If a COB-appointed managing agent is in place, confirm they have no professional or pecuniary interest in the scheme under s.87(1). |
| 5 | Review the management agreement to see which decisions are reserved to the committee or the body at a general meeting. |
Common questions
Can the manager change the charge rate?
No. The charge rate is determined by the body at a general meeting under s.25(3) for a JMB and s.60(3) for an MC. During the developer's period the developer sets it, subject to review by the COB, but once residents control the body, an ordinary resolution at the general meeting sets the rate.
Can the manager reduce the sinking fund below 10%?
No. Sections 12(4), 25(4), 52(3), 61(3) and 68(3) all fix a 10% minimum. The body may raise it higher by ordinary resolution at a general meeting, but it cannot go below that floor.
Can the manager make new bylaws on their own?
No. Bylaws are made or amended only by special resolution under s.32(3) for a JMB or s.70(2) for an MC. A special resolution requires at least 21 days' written notice and not less than three-quarters of valid votes cast.
What controls a COB-appointed managing agent?
A COB-appointed managing agent acts under the COB's control and general directions under s.89(2), and must have no professional or pecuniary interest in the scheme under s.87(1). They are subject to the Commissioner, not the committee.
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.
How your maintenance charge is actually calculated — share units, not floor area
Malaysian maintenance charges are apportioned by allocated share units under the Strata Management Act 2013, not by floor area — s.8(1) sends the computation to the First Schedule, and s.12(3), s.25(3) and s.60(3) apply it through the developer, JMB and MC periods. Here is how to read your own bill and when a different rate is lawful.
Lewis Conclusion
If you only remember one thing: ask for your share unit figure, not your square footage. It is the number that sets your bill and your vote for as long as you own the unit, and it is printed on documents you are entitled to see.
The sinking fund explained
The sinking fund is a statutory capital reserve set at a minimum of 10% of the maintenance charge under ss.12(4), 25(4), 52(3), 61(3) and 68(3) of Act 757. It may only be spent on capital items — painting, replacing fixtures, upgrading common property — and a general meeting may raise the rate but never drop it below 10%.
Lewis Conclusion
Ask two questions before you buy into any high-rise: what is the sinking fund balance, and when were the lifts, the roof and the external paint last done. If the balance is small and those items are old, the shortfall is coming to you as a special levy — it is only a question of which year.
What actually happens if you stop paying maintenance charges
Stopping payment of maintenance charges triggers a statutory sequence, not a negotiation: a Form 11 notice from a JMB (s.34(1)) or Form 20 from a management corporation (s.78(1)) giving not less than 14 days, interest capped at 10% per annum, then a debt claim, a warrant of attachment over your movable property, or criminal prosecution.
Lewis Conclusion
Withholding charges is the one protest that cannot work, because arrears also disqualify you from the committee and from voting — the exact levers you would need to fix whatever you are protesting about. Pay under protest, then fight it at the tribunal or the AGM where you still have standing.
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Confirm the charge rate was set by general meeting resolution, not by the manager unilaterally.
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Check that any additional bylaws are supported by a special resolution with at least three-quarters of valid votes, per s.32(3) or s.70(2).
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Verify the sinking fund is at least 10% of charges — it cannot be lowered below that floor.
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If a COB-appointed managing agent is in place, confirm they have no professional or pecuniary interest in the scheme under s.87(1).