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Strata & Building Management

What building records you have a legal right to see — and the deadline to get them

Owners may inspect the books of accounts and obtain a certificate of the fund balances — s.31 for a JMB, s.73 for a management corporation. Refusing inspection or failing to maintain or audit accounts is an offence under ss.26(5) and 62(5), with committee members personally liable up to RM250,000 or three years.

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.

Where the power sits

The question here is accounts, registers, contracts and minutes are not management's private property. Refusal is an offence, not a policy. Procedure is not bureaucracy here; it is the only thing standing between your money and a small unaccountable group.

What you can ask to see

Owners may inspect the books of accounts, and may obtain a certificate of the state of the funds — section 31 for a joint management body, section 73 for a management corporation. The certificate is the more useful of the two in practice, because it puts the balances into a formal document signed by the body rather than described verbally at a meeting. If you are a buyer doing due diligence rather than an existing owner, it is also the document a conveyancing lawyer will want to see.

Refusal is an offence, and it is personal

This is the part that changes behaviour. Failing to maintain or audit the accounts, or failing to permit inspection, is an offence under s.26(5) for a joint management body and s.62(5) for a management corporation — and committee members are personally liable, to a fine of up to two hundred and fifty thousand ringgit, imprisonment of up to three years, or both. Separately, refusing to issue the s.31 certificate is an offence under regulation 19(2) of the 2015 Regulations, carrying a fine of up to fifty thousand ringgit, imprisonment of up to three years, or both.

If they still will not produce them

Take it to the Strata Management Tribunal. Part 1 of the Fourth Schedule includes a head of claim to compel a developer, joint management body, management corporation or subsidiary management corporation to supply information or documents. File that together with whatever substantive complaint the documents relate to — the document order is usually what makes the substantive claim provable, so bringing them together saves a round trip.

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

Three levers. Inspection of the books of accounts. A certificate of the state of the funds under s.31 for a joint management body or s.73 for a management corporation. And, if either is refused, the offences in ss.26(5) and 62(5) — committee members personally liable to a fine up to RM250,000, imprisonment up to three years, or both. Refusing to issue a s.31 certificate carries its own penalty under regulation 19(2): up to RM50,000, three years, or both.

1

Put the request in writing and name the section — s.31 for a JMB, s.73 for a management corporation.

2

Ask for the certificate of the fund balances, not just a verbal update at a meeting.

3

If inspection is refused, cite s.26(5) or s.62(5) and note committee members are personally liable.

4

If the s.31 certificate is refused, cite regulation 19(2) of the 2015 Regulations.

5

If nothing is produced, file at the tribunal under the Fourth Schedule head compelling supply of documents.

Common questions

Do I have a right to see the building's accounts?

Yes. Owners may inspect the books of accounts and obtain a certificate of the state of the funds — s.31 for a joint management body, s.73 for a management corporation.

What happens if the committee refuses?

Failing to permit inspection, or to maintain or audit the accounts, is an offence under s.26(5) for a JMB and s.62(5) for an MC, with committee members personally liable to a fine up to RM250,000, imprisonment up to three years, or both.

Is there a separate penalty for refusing the certificate?

Yes. Regulation 19(2) of the 2015 Regulations makes refusing to issue the s.31 certificate an offence carrying a fine up to RM50,000, imprisonment up to three years, or both.

Can the tribunal order them to hand over documents?

Yes. Part 1 of the Fourth Schedule includes a claim to compel a developer, JMB, MC or subsidiary MC to supply information or documents.

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

Put the request in writing and name the section — s.31 for a JMB, s.73 for a management corporation.

Send

Ask for the certificate of the fund balances, not just a verbal update at a meeting.

Send

If inspection is refused, cite s.26(5) or s.62(5) and note committee members are personally liable.

Send

If the s.31 certificate is refused, cite regulation 19(2) of the 2015 Regulations.

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