How to Set Up a JMB
Malaysia: Step-by-Step Guide

General guidance for 2026 — not legal advice. The Strata Management Act 2013 and its 2015 Regulations govern this; confirm specifics with your Commissioner of Buildings (COB) or a strata lawyer. Need strata repair/maintenance help? Ask us →

Overview of the JMB formation process

Forming a JMB in Malaysia follows a clear sequence under the Strata Management Act 2013 (Act 757). The developer drives the early stages; once the first AGM is convened and the JMC is elected, the owners take over. The process typically spans from the date of vacant possession (VP) to the JMB being fully operational — a period that should be no longer than 12 months from VP by law.

For the big picture of where the JMB fits in the strata lifecycle, see the JMB complete guide →.

Stage 1: Vacant possession and the developer’s management period

The JMB formation process begins on the date the developer delivers vacant possession (VP) of the parcels in the stratified development. From this date:

• The developer enters its management period — it is responsible for maintaining and managing the common property and collecting Charges from parcel owners during this time.
• The developer must maintain and manage the building in the same way the JMB will later be required to do.
• The developer must collect Charges and sinking fund contributions from owners and hold them in separate accounts.
• The developer’s management period ends when the first AGM is convened and the JMB takes over.

During this period, owners should keep records of all Charges paid to the developer, as these funds must be handed over to the JMB at the first AGM.

Stage 2: The developer convenes the first AGM

The developer’s most critical obligation is to convene the first AGM of the JMB within 12 months from the date of delivery of vacant possession. This is the trigger that brings the JMB into existence.

Important points about the first AGM obligation:

• The obligation to convene the first AGM rests with the developer, not with the owners.
• The JMB comes into existence on the date the first AGM is convened — not before.
• If the developer fails to convene the first AGM within 12 months of VP, owners can escalate to the Commissioner of Buildings (COB). The COB has powers to take action against the developer. See JMB problems & disputes →.
• Notice of the first AGM must be given to all parcel owners within the period prescribed by the Regulations. Confirm the exact notice period with your COB or a strata lawyer.

For a detailed breakdown of the first AGM agenda and the developer’s handover obligations, see JMB first AGM →.

What happens at the first AGM

The first AGM is the founding meeting of the JMB. The key agenda items are:

1. The developer tables the audited accounts for the management period, showing all Charges and sinking fund contributions collected and expenditure incurred.
2. The developer presents the balance of the maintenance account and sinking fund to be handed over to the JMB.
3. The developer tables all contracts, as-built plans, warranties, keys, and inventory for handover.
4. Parcel owners elect the first JMC by secret ballot or show of hands (voting weighted by share units).
5. The newly elected JMC immediately elects office bearers (Chairman, Secretary, Treasurer) from among its members.
6. The meeting adopts or confirms the by-laws for the building.
7. The meeting approves a budget and Charges for the JMB’s first management period.

Stage 3: Electing the JMC and office bearers

The election of the JMC at the first AGM is a crucial step. Key points:

• Any parcel owner (or an eligible proxy or representative) may stand for election to the JMC.
• Voting is by share units — owners with more share units cast proportionally more votes.
• Once the JMC is elected, the members meet immediately to elect the Chairman, Secretary, and Treasurer from among themselves.
• The JMC serves until the next AGM, when a new committee is elected.

For a full guide to the election process, eligibility, proxies, and office-bearer duties, see how to appoint the JMB committee → and JMB office bearers →.

Stage 4: Notifying the Commissioner of Buildings (COB)

After the first AGM, the JMB must give notice of its establishment to the Commissioner of Buildings (COB) at the relevant local authority. This step is important because:

• It formally places the JMB on the COB’s register, enabling the COB to exercise its oversight functions.
• The JMB’s subsequent filings (e.g. annual returns, accounts) will be submitted to the COB.
• The notification should include details of the JMB, the building, and the elected office bearers.

The notification must be given within the period prescribed by the Strata Management (Maintenance and Management) Regulations 2015. Confirm the exact requirements, forms, and deadline with your local authority’s COB office. For a full guide to COB dealings, see JMB registration with the COB →.

Stage 5: Opening the bank accounts

The JMB must open and operate two separate bank accounts in its own name:

Key points about the accounts:

• Both accounts must be in the JMB’s name — not in an individual committee member’s name or the managing agent’s name.
• The developer must transfer the existing maintenance and sinking fund balances held during the management period into these accounts at the first AGM.
• The accounts are subject to annual audit and must be presented to owners at each AGM.
• The sinking fund account balance may not be used for operating expenses — it is a protected capital reserve.

Stage 6: Confirming and enforcing the by-laws

The prescribed by-laws under the Strata Management (Maintenance and Management) Regulations 2015 apply automatically to every strata scheme. The JMB’s first AGM is a good opportunity to:

• Confirm that all owners and residents receive a copy of the prescribed by-laws.
• Consider whether any additional by-laws are needed for the specific building (e.g. pet rules, renovation hours, short-term rental restrictions). Additional by-laws must be passed by special resolution and registered with the COB to be enforceable.
• Brief all owners on the by-law enforcement process: warning → fine (up to prescribed maximum) → Strata Management Tribunal. See strata house rules & fines →.

Stage 7: Taking over management from the developer

At the first AGM, or immediately after it, the developer must hand over the following to the newly constituted JMB:

• Audited accounts for the developer’s management period.
• Balance of the maintenance account and sinking fund (transferred to the JMB’s accounts).
• All contracts entered into during the developer’s management period (maintenance, security, cleaning, lift, etc.).
• As-built plans, strata plans, engineering drawings, and warranties for the building and common property.
• Keys, access cards, and inventory for all common areas, plant rooms, and equipment.
• Any other documents relevant to the management of the building.

The JMC should prepare a formal handover checklist and ensure everything is signed off before the developer is released from its management obligations. For more on handover issues, see developer-to-JMB handover →.

Formation checklist: from VP to a fully operational JMB

What if the developer does not act?

If the developer fails to convene the first AGM within 12 months of VP, or fails to complete the handover, owners have several remedies:

1. Write to the developer formally requesting that it fulfil its obligations under the SMA 2013 and citing the 12-month deadline.
2. Complain to the Commissioner of Buildings (COB) — the COB has powers to direct the developer to convene the AGM and to take enforcement action for non-compliance.
3. File at the Strata Management Tribunal — for disputes about the developer’s failure to hand over funds, accounts, or documents, the Tribunal is the specialist forum. See Strata Management Tribunal →.

Next steps after the JMB is formed

Once the JMB is operational, the JMC should:

• Review all developer-era contracts (maintenance, security, cleaning, lift) and decide whether to continue, renegotiate, or retender them.
• Carry out a condition survey of the common property to identify any defects or outstanding developer rectification obligations.
• Set up a system for collecting Charges and pursuing defaulters promptly.
• Consider appointing a professional managing agent if the committee does not have the capacity to manage the building day-to-day. See managing agent vs self-managed →.
• Plan for the next AGM — accounts must be audited and circulated; the committee is re-elected annually. See strata AGM meetings →.
• Keep an eye on the strata title application — once strata titles are issued and the MC is formed, the JMB will be dissolved and the handover to the MC will need to be managed.