1 Answer

askguru expert
Hello and thank you for getting in touch with us Stephen.

Based on the said case law, the power is vested on the JMB to determine the rate of the maintenance charges and the JMC does not have that power to determine the maintenance charges arbitrarily as it only has the responsibility to execute the collection of the maintenance charges accordingly. In the said case, the JMB during AGM resolved and mandated that the JMC can fix maintenance charges. However, under the Strata Management Act 2013 (“SMA”), there is no such provision that empowers the JMB to delegate its duty to fix different rates of maintenance charges to the JMC.

Hence, that decision achieved through the AGM was ultra vires the SMA.

In furtherance to your question and to clarify our reply previously, the JMB has the power to determine a single rate of the maintenance charges and the rate per share unit in proportion to the allocated share units. To clarify again, the total maintenance charges will differ depending on the size of the parcel unit. However, all of these maintenance charges has to be in compliance with the provision of the SMA and that the allocation and calculation of the share units of each parcel must be filed with the Commissioner of Buildings and approved by the Director of Lands and Mines.

Hence, there should not be any arbitrary determination of the maintenance charges contrary to the SMA.

Hope this clarifies.