Common JMB Problems & How to Solve Them (Malaysia) – ClickBina
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⚖ Strata Law

Common JMB Problems
& How to Solve Them (Malaysia)

JMBs can go wrong in predictable ways — from a developer who won’t hold the first AGM to a committee that mismanages the sinking fund. Here is a practical problem-by-problem guide to the remedies available under Malaysian strata law.

The Strata Management Act 2013 provides a layered set of remedies for JMB problems: direct engagement with the developer or committee; escalation to the Commissioner of Buildings (COB) who has oversight and intervention powers; and filing at the Strata Management Tribunal for binding dispute resolution. The remedy you choose depends on the type of problem — use the problem-to-remedy table in this guide as your starting point.

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 →

No two JMBs are identical, but the problems they face tend to follow recognisable patterns. Whether the issue is a developer stonewalling on the handover, a Treasurer who has gone quiet, or an owner who has not paid charges in two years, the Strata Management Act 2013 gives owners and management bodies a clear set of tools to respond. This guide maps the most common JMB problems to their practical remedies. For the big picture on how a JMB operates, see our JMB complete guide →.

Overview: the remedies available under Malaysian strata law

Before diving into specific problems, here is the landscape of remedies available:

  • Direct engagement — writing formally to the developer, committee, or managing agent. Always the first step; creates a paper trail.
  • General meeting — owners can raise issues at the AGM or, if urgent, requisition an EGM to replace the committee or pass resolutions. See strata AGM guide →.
  • Commissioner of Buildings (COB) — the regulator at the local authority. The COB has powers to investigate, issue directions, and appoint a managing agent in place of a non-functioning JMB. Complaints are free to lodge.
  • Strata Management Tribunal — a specialist tribunal under the Strata Management Act 2013 for binding dispute resolution between owners, management bodies, and developers. Faster and cheaper than civil court for many strata disputes. See Tribunal guide →.
  • Civil court — for matters above the Tribunal’s jurisdiction or requiring injunctive relief. Slower and more expensive; typically a last resort.

Problem: developer not convening the first AGM

The situation: Vacant possession has been delivered but the 12 months are passing and the developer has not announced or convened the first AGM. Owners are frustrated and the common property is deteriorating under the developer’s management.

Why it happens: Developers sometimes delay the first AGM to maintain control of the maintenance account for longer, avoid handing over incomplete works, or because of internal disorganisation.

Remedies:

  1. Document the VP delivery date and calculate the 12-month deadline precisely.
  2. Write formally to the developer demanding the AGM date and citing the 12-month obligation under the Strata Management Act 2013. Keep copies.
  3. Lodge a complaint with the COB at the relevant local authority. Provide the VP date, the developer’s name, and the failure to comply. The COB can direct the developer to convene the AGM.
  4. File at the Strata Management Tribunal for an order compelling the developer to comply.
  5. Consult a strata lawyer if the developer and COB remain unresponsive.

See also our detailed guide: JMB first AGM & developer handover obligations →.

Problem: developer not handing over funds or documents

The situation: The first AGM has been held and the JMC elected, but the developer has not transferred the full maintenance account or sinking fund balance, or has failed to hand over as-built drawings, compliance certificates, or keys.

Why it matters: The JMB cannot properly manage the building without the funds and documents. Missing compliance certificates (e.g., lift CF, fire certificates) can expose the JMB to regulatory liability.

Remedies:

  1. Record every missing item in the first AGM minutes (or in a subsequent written demand to the developer).
  2. Write formally to the developer with a specific itemised list and a deadline.
  3. Complain to the COB with evidence of the shortfall (the handover checklist from the AGM minutes makes an ideal complaint exhibit).
  4. File a claim at the Strata Management Tribunal for the return of the funds or delivery of the documents. The Tribunal can make monetary awards and compliance orders.

Do not allow the JMB to start operating without a proper written record of what was and was not handed over. See our developer-to-JMB handover guide →.

Problem: owners not paying maintenance charges

The situation: A proportion of owners are not paying their Charges or sinking-fund contributions, leaving the JMB short of cash to pay contractors, utilities, and insurance premiums.

Consequences: Cash shortfall can lead to unpaid contractors, lapsed insurance, delayed maintenance, and ultimately a deteriorating building that damages all owners’ values.

Remedies:

  1. Issue a formal demand letter to the defaulting owner, stating the amount owed and a payment deadline.
  2. Note that owners in arrears generally cannot vote at the AGM — this is a built-in incentive to pay.
  3. File a claim at the Strata Management Tribunal for recovery of the outstanding Charges. The Tribunal can make binding payment orders against defaulters.
  4. For persistent defaulters, the Tribunal order can be enforced through the courts if needed.

For a full guide to the recovery process, see service-charge defaulters →. A well-run Treasurer will report the arrears position at every committee meeting so the JMB can act early.

Problem: deadlocked or self-serving committee

The situation: The JMC cannot reach decisions, or a few members (or the Chairman) are making decisions that benefit themselves rather than all owners — for example, awarding contracts to related parties, excluding other committee members from discussions, or refusing to hold the AGM.

Remedies:

  1. Raise the issue formally in writing to the full committee, requesting a meeting to resolve the matter.
  2. Owners holding the required share (confirm the threshold with your regulations — commonly a proportion of aggregate share units) can requisition an EGM to remove and replace committee members. See how to call an EGM →.
  3. Complain to the COB about the committee’s conduct. The COB has powers to investigate management bodies and can appoint a managing agent in place of a non-functioning or improperly functioning committee.
  4. For serious misconduct (self-dealing, financial mismanagement), report to the COB and consider a Tribunal application.

Problem: mismanaged accounts or financial irregularities

The situation: The JMB’s accounts are not properly maintained, have not been audited, funds appear to have been misused, payments are being made without proper authorisation, or the maintenance account and sinking fund have been commingled.

Why it is serious: Financial mismanagement directly harms all owners. It can deplete the sinking fund needed for major repairs, expose the building to uninsured risk, and leave the committee members personally liable.

Remedies:

  1. Owners have a right to request inspection of the JMB’s accounts and records. Exercise this right and document what you find.
  2. Raise concerns in writing at the next committee meeting or AGM. Request that an independent auditor be appointed immediately.
  3. Requisition an EGM to replace the committee and appoint a new managing agent if needed.
  4. Lodge a COB complaint with your documented evidence. The COB can direct an audit and, if warranted, appoint a managing agent.
  5. File at the Strata Management Tribunal for recovery of misapplied funds or a compliance order requiring proper accounting.
  6. For criminal conduct (fraud, misappropriation), report to the police (PDRM) in addition to the COB and Tribunal.

See strata accounts & audit guide → for what proper accounts should look like.

Problem: poor or neglected maintenance

The situation: Common areas are dirty and poorly maintained; lifts break down frequently; the roof leaks; the car park lighting is broken — and the committee is not addressing it despite owner complaints.

Why it matters: Proper maintenance and management of common property is a core statutory duty of the JMB under the Strata Management Act 2013. Neglect is not just a convenience issue; it can create safety hazards and lead to more expensive remediation later.

Remedies:

  1. Report specific maintenance issues to management in writing, identifying the location, the problem, and requesting a timescale for remedy. Keep a copy.
  2. If there is no response, escalate to the committee in writing and raise the issue at the next AGM or committee meeting.
  3. Requisition an EGM if the committee is persistently failing to act.
  4. Lodge a COB complaint — the COB can issue directions to the JMB to carry out specific maintenance works.
  5. File at the Strata Management Tribunal for an order compelling the JMB to carry out maintenance or repair.

For guidance on lift maintenance specifically (a common and costly area of neglect), see condo lift maintenance guide →.

Problem: a non-functioning or dissolved JMB

The situation: The JMB’s committee has resigned en masse, the term has expired with no new AGM called, there are not enough committee members for a quorum, or the JMB has ceased to function effectively.

Consequences: Without a functioning JMB, common property management stalls, contractors may go unpaid, and the building can deteriorate rapidly.

Remedies:

  1. Complain to the COB — this is the primary remedy for a non-functioning JMB. The COB has powers to intervene and, where necessary, appoint a managing agent to run the building until a new committee can be elected.
  2. If sufficient committee members remain, they can co-opt replacements to fill casual vacancies and call an EGM to elect a full committee.
  3. Owners with the required share can themselves requisition an EGM to elect a new committee.

Note that the JMB is distinct from the Management Corporation (MC), which is formed when strata titles are issued. Once the MC comes into existence, the JMB is dissolved and its funds and records pass to the MC. If strata titles are imminent, the management transition to the MC may be the more practical solution.

Problem-to-remedy reference table

ProblemFirst stepEscalationLast resort
Developer not calling first AGMWritten demand to developer citing 12-month SMA 2013 obligationCOB complaintStrata Management Tribunal application for compliance order
Incomplete handover of funds or documentsRecord shortfall in AGM minutes; written demand to developerCOB complaint with evidenceTribunal claim for return of funds or delivery of documents
Owners not paying ChargesFormal demand letter to defaulting ownerTribunal claim for recovery of unpaid ChargesEnforcement of Tribunal order through courts
Deadlocked or self-serving committeeWritten request for committee meeting; raise at AGMEGM to remove and replace committeeCOB complaint; Tribunal application
Mismanaged accounts / financial irregularitiesInspect accounts; raise in writing at AGM; request independent auditEGM to replace committee; COB complaint with documentary evidenceTribunal application; police report (if criminal conduct suspected)
Poor or neglected maintenanceReport specific defects in writing to managementCOB complaint for direction to carry out worksTribunal order compelling maintenance
Non-functioning JMB (committee resigned / no quorum)COB complaint for intervention and appointment of managing agentEGM requisition to elect new committee (if possible)MC formation (if strata titles imminent)

Escalating to the Commissioner of Buildings (COB)

The COB is the primary regulator of strata management in Malaysia — operating within the relevant local authority (city council, municipal council, or district council) for the area where the building is located. The COB has broad powers under the Strata Management Act 2013 to:

  • Investigate complaints from owners and management bodies.
  • Issue written directions to the JMB or developer to comply with their obligations.
  • Appoint a managing agent to take over management of a building where the JMB is non-functioning or has mismanaged affairs.
  • Require the production of accounts and documents.
  • Take enforcement action for breaches of the Act.

COB complaints are generally free and do not require a lawyer. Bring: a clear written description of the problem, the key dates, any correspondence with the developer or committee, and any supporting evidence (account statements, photos of maintenance defects, AGM minutes). See strata management complaints guide →.

Filing at the Strata Management Tribunal

The Strata Management Tribunal provides faster and cheaper access to binding dispute resolution than the civil courts for many strata disputes. It can:

  • Make orders for the payment of money (e.g., recovery of Charges from defaulters; return of misapplied funds).
  • Make compliance orders (directing the developer or JMB to perform a specific act).
  • Hear disputes between owners, management bodies, and developers arising under the Strata Management Act 2013.

The Tribunal has a monetary limit for claims — confirm the current limit and whether your dispute falls within its jurisdiction with the COB or a strata lawyer. Claims above the limit must go to the civil courts. For a full guide to the Tribunal process, see Strata Management Tribunal guide →.

Prevention is better than cure

Most JMB problems are preventable with good governance from the start. Practical steps that avoid the disputes described in this guide:

  • Elect a capable committee — look for people with time, financial literacy, and a genuine interest in the building’s welfare. Avoid committees dominated by a single faction.
  • Require dual signatories on all JMB accounts — this single safeguard eliminates most financial mismanagement risks.
  • Hold the AGM every year without fail — it is the owners’ primary oversight mechanism and a statutory duty.
  • Pursue defaulters promptly — a culture of non-payment is much harder to reverse once established. The Tribunal process for Charges recovery is relatively straightforward.
  • Keep proper records — meeting minutes, financial records, correspondence, and contracts should all be filed and accessible. Good records are your best defence and your best evidence.
  • Engage the COB early — the COB is not only for complaints. Its guidance on procedures and compliance can prevent problems before they escalate.

COB vs Tribunal: which route to choose?

FactorCOB complaintStrata Management TribunalCivil court
CostFreeLow (filing fee only)High (legal fees)
SpeedVariable (COB’s discretion)Faster than courts; target within monthsSlow (can take years)
Binding order?COB direction (enforceable)Yes — Tribunal order is bindingYes — court judgment
Best forRegulatory non-compliance; non-functioning JMB; COB intervention neededMoney claims; compliance orders; disputes within monetary limitLarge claims; injunctions; appeals
Lawyer needed?NoGenerally no (self-represent is common)Strongly recommended
Monetary limitN/A (not a money-award forum)Confirm current limit with COB/strata lawyerUnlimited

Sources & official references

This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:

Common Questions

What can I do if my developer has not called the JMB's first AGM?
First, write formally to the developer citing the Strata Management Act 2013 obligation to convene the first AGM within twelve months of delivering vacant possession. If the developer does not respond, lodge a complaint with the Commissioner of Buildings (COB) at the local authority and/or file a claim at the Strata Management Tribunal for a compliance order.
What if the developer refuses to hand over the sinking fund balance?
Record the shortfall in the AGM minutes, write a formal demand to the developer with a deadline, and lodge a complaint with the COB. You can also file a claim at the Strata Management Tribunal for recovery of the funds. For large amounts or an unresponsive developer, consult a strata lawyer about civil court action.
How can the JMB recover unpaid maintenance charges from an owner?
Issue a formal demand letter to the defaulting owner. If unpaid, file a claim at the Strata Management Tribunal for recovery of the outstanding Charges. The Tribunal can make a binding payment order. Persistent non-payment by owners in arrears also affects their voting rights at the AGM, which is an incentive to pay.
What can owners do about a self-serving or corrupt committee?
Raise concerns in writing to the full committee; requisition an EGM to remove and replace committee members; and lodge a complaint with the Commissioner of Buildings (COB). The COB has powers to investigate and, if warranted, appoint a managing agent in place of the committee. For criminal conduct (fraud, misappropriation), file a police report.
Who has the power to intervene if a JMB stops functioning?
The Commissioner of Buildings (COB) is the primary authority. The COB can investigate, issue directions, and appoint a managing agent to take over management of the building. Owners can also try to requisition an EGM to elect a new committee, if enough owners remain engaged.
What is the Strata Management Tribunal and when should I use it?
The Strata Management Tribunal is a specialist dispute-resolution body under the Strata Management Act 2013. It handles disputes between owners, management bodies, and developers — including recovery of Charges, return of funds, compliance orders, and maintenance disputes. It is faster and cheaper than the civil courts for disputes within its monetary jurisdiction.
Can I complain to the COB about poor building maintenance?
Yes. If the JMB or developer is failing in their statutory duty to maintain common property, you can lodge a complaint with the COB. The COB can issue written directions to the JMB to carry out specific works. You can also apply to the Strata Management Tribunal for a compliance order. Always report defects in writing to management first and keep copies.
What is the best way to prevent JMB problems from arising in the first place?
Key preventive measures: elect a capable and representative committee at each AGM; require dual signatories on all JMB bank accounts; hold the AGM annually without fail; pursue Charges defaulters promptly; keep proper financial records and have accounts audited; engage the COB early when guidance is needed; and maintain good communication between the committee and all owners.

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