Understanding the extraordinary general meeting definition in Malaysia is crucial for property owners, Joint Management Bodies (JMB), and Management Corporations (MC) involved in strata developments. These meetings play a vital role in decision-making processes that affect the management and maintenance of shared properties.
What Is an Extraordinary General Meeting (EGM)?
An Extraordinary General Meeting (EGM) is a meeting convened outside the normal schedule of an Annual General Meeting (AGM). In the context of Malaysian strata management, it is a formal gathering of parcel owners or proprietors to deliberate and decide on urgent or significant matters that cannot wait until the next AGM.
EGMs are governed by the Strata Management Act 2013 (Act 757) and related regulations. They are essential tools for ensuring that the voices of proprietors are heard when pressing issues arise.
Legal Framework Governing EGMs in Malaysia
The extraordinary general meeting definition in Malaysia is shaped by several legal instruments, primarily the Strata Management Act 2013 and the Strata Management (Maintenance and Management) Regulations 2015. These laws outline the procedures, rights, and responsibilities of JMBs, MCs, and parcel owners in calling and conducting EGMs.
- Strata Management Act 2013 (SMA): Sections 18, 19, 57, and 59 are particularly relevant.
- Strata Management Regulations 2015: Provide detailed procedural requirements for notices, quorums, and voting.
When Can a JMB or MC Convene an EGM?
Under Malaysian law, both the Joint Management Body (JMB) and the Management Corporation (MC) have the authority to convene an EGM under specific circumstances. The extraordinary general meeting definition in Malaysia includes the ability to address urgent matters that require immediate attention and consensus from proprietors.
By the Committee Itself
The JMB or MC committee may call for an EGM when they believe there is a matter of importance that cannot be delayed until the next AGM. Examples include:
- Approval of urgent repair or maintenance works
- Appointment or termination of managing agents
- Legal proceedings involving the property
By Requisition of Proprietors
Parcel owners can also request an EGM. According to the SMA, proprietors holding at least 25% of the total share units may submit a written requisition to the JMB or MC. The committee must then convene the EGM within six weeks of receiving the request.
This provision ensures that owners have a mechanism to raise concerns and influence decisions affecting their property.
Procedural Requirements for EGMs
To comply with the extraordinary general meeting definition in Malaysia, certain procedural steps must be followed to ensure the meeting is valid and enforceable.
- Notice: A written notice must be issued at least 14 days before the meeting (or 21 days if special resolutions are involved).
- Agenda: The notice must include the agenda, date, time, and venue of the meeting.
- Quorum: At least 25% of the total share units must be present or represented for the meeting to proceed.
- Voting: Decisions are made by ordinary or special resolutions, depending on the matter.
Examples of Matters Discussed in EGMs
Understanding the extraordinary general meeting definition in Malaysia becomes clearer when we look at real-life examples of issues commonly addressed during EGMs:
- Approval of additional maintenance charges
- Major renovation or upgrading works
- Disputes involving common property usage
- Security enhancements or changes
- Change of insurance providers
Differences Between AGM and EGM
| Aspect | AGM | EGM |
|---|---|---|
| Frequency | Once a year | As needed |
| Purpose | Routine matters | Urgent/specific matters |
| Initiated by | Committee | Committee or proprietors |
| Notice Period | 14-21 days | 14-21 days |
Common Challenges in Holding EGMs
Despite the clear extraordinary general meeting definition in Malaysia, many JMBs and MCs face challenges in organizing effective EGMs:
- Low attendance: Difficulty in achieving quorum due to lack of interest or awareness
- Disputes: Conflicts among proprietors or committee members can derail the meeting
- Improper notice: Failure to follow statutory requirements may invalidate the meeting
Best Practices for Conducting EGMs
To ensure compliance with the extraordinary general meeting definition in Malaysia and achieve productive outcomes, consider the following best practices:
- Provide clear and timely notices
- Engage owners through pre-meeting briefings
- Ensure transparency in agenda and resolutions
- Appoint a neutral chairperson if necessary
- Document proceedings accurately
Role of the Commissioner of Buildings (COB)
The COB plays a supervisory role in ensuring that EGMs are conducted in accordance with the law. If disputes arise or if the JMB/MC fails to act on a valid requisition, proprietors may lodge a complaint with the COB for intervention.
Legal Remedies for Improper EGMs
If an EGM is conducted improperly, affected parties may seek legal remedies. The Strata Management Tribunal or civil courts may be approached to declare the meeting invalid or to challenge specific resolutions passed during the meeting.
Case Studies: EGMs in Action
To better understand the extraordinary general meeting definition in Malaysia, let’s explore a few real-world scenarios:
Case Study 1: Urgent Lift Repairs
A condominium in Kuala Lumpur experienced frequent lift breakdowns. The JMB convened an EGM to approve emergency funds for replacement. The resolution passed with 80% support.
Case Study 2: Dispute Over Pet Policy
In a Penang apartment complex, residents were divided over allowing pets. A group of owners requisitioned an EGM, and a vote was held. The majority voted to amend the house rules to allow pets under specific conditions.
How to Requisition an EGM as a Parcel Owner
If you are a parcel owner and wish to initiate an EGM, follow these steps to align with the extraordinary general meeting definition in Malaysia:
- Gather support from owners representing at least 25% of share units
- Draft a formal requisition letter with proposed agenda
- Submit the letter to the JMB or MC
- Follow up to ensure the EGM is convened within 6 weeks
Conclusion: Managing Expectations Around EGMs
Understanding the extraordinary general meeting definition in Malaysia empowers property owners and committee members to participate meaningfully in strata governance. While EGMs are powerful tools for decision-making, they must be approached with clear expectations, proper procedures, and a spirit of cooperation. Not all issues can be resolved instantly, and consensus may take time. By managing expectations and adhering to legal frameworks, stakeholders can ensure that EGMs serve their intended purpose effectively.
