JMB Responsibilities & Duties under SMA 2013 (Malaysia) – ClickBina
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⚖ Strata Law

JMB Responsibilities & Duties
Strata Management Act 2013 (Malaysia)

The Joint Management Body has clear statutory duties under Malaysian strata law. Here is the complete picture — what the JMB must do, who carries out each duty, and what happens when it falls short.

Under the Strata Management Act 2013 (Act 757), a JMB’s core duties include: properly maintaining and managing common property; determining and imposing Charges and sinking fund contributions; effecting building insurance; preparing and auditing accounts; convening the AGM; maintaining registers and records; enforcing the by-laws; and complying with COB orders. These are statutory duties — not optional. Failure to perform them can trigger complaints to the Commissioner of Buildings (COB) or action at the Strata Management Tribunal.

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 →

A JMB (Joint Management Body) is not a voluntary association — it is a body corporate created by the Strata Management Act 2013. As a body corporate it can sue, be sued, hold funds, and enter contracts. With that legal status comes a set of statutory duties that the JMB and its elected Joint Management Committee (JMC) are obliged to carry out. Failing these duties is not merely poor governance; it can expose the management body and its committee members to complaints, orders, and liability. See our JMB complete guide → for the broader context.

Overview: the JMB’s legal standing

The JMB comes into existence on the date the developer convenes the first AGM — which must happen within twelve (12) months from the date vacant possession is delivered. Once formed, it is a body corporate consisting of the developer and all parcel owners. Day-to-day management is delegated to the elected Joint Management Committee (JMC). The JMB operates under the oversight of the Commissioner of Buildings (COB) at the relevant local authority and is subject to the jurisdiction of the Strata Management Tribunal for disputes.

For a comparison of the JMB with the Management Corporation (MC) that succeeds it, see JMB vs MC →.

Duty 1: Maintain and manage common property

This is the JMB’s most visible and fundamental duty. The JMB must properly maintain and manage the building and common property and keep them in good repair. “Common property” covers everything outside the individual parcels: corridors, lifts, stairwells, roofs, facade, car parks, lobbies, landscaping, pools, gymnasiums, building services (water tanks, drainage, electrical infrastructure), and all shared equipment.

In practice this means:

  • Carrying out routine preventive maintenance (cleaning, inspections, servicing of equipment such as lifts, pumps, and generators).
  • Responding promptly to repair requests from owners and residents.
  • Commissioning periodic structural or engineering inspections for ageing buildings.
  • Maintaining the Certificate of Fitness for Occupation (CFO) and any machinery certificates (e.g., DOSH Certificate of Fitness for lifts).
  • Planning capital works using the sinking fund.

A JMB that allows common property to fall into serious disrepair — and takes no action — is in breach of its statutory duty and can be ordered by the COB or Tribunal to remediate.

Duty 2: Determine and collect Charges and sinking fund contributions

The JMB must determine, impose, and collect two levies from all parcel owners:

  • Charges (maintenance fees) — the regular monthly contribution to cover the operational costs of managing and maintaining common property (cleaning, security, utilities, routine maintenance, insurance premiums, management fees).
  • Sinking fund contributions — a separate fund set aside for periodic and major works (lift overhauls, roof replacement, external repainting, major structural repairs).

Both levies are apportioned by share units — each parcel owner pays in proportion to the allocated share units of their parcel, not as a flat fee per unit. The sinking fund contribution rate is commonly expressed as a percentage of the Charges, though the exact rate depends on the building’s capital expenditure plan. Confirm rates with your COB or committee.

Owners who default on these levies can be pursued under the SMA 2013. For the recovery process, see service charge defaulters →. For how the charge rate is set, see setting the maintenance charge →.

Duty 3: Effect building insurance

The JMB must effect and maintain insurance on the building. At minimum, this covers:

  • Fire insurance — covering the building (structure and common property) against fire and related perils.
  • Public liability insurance — covering the JMB against liability to third parties arising from the common property (e.g., a visitor injured in the lobby).

These are statutory minimum coverages. A well-run JMB should also consider consequential-loss cover, machinery breakdown cover for lifts and pumps, and professional indemnity for the committee where appropriate. The insurance premiums are part of the annual budget funded from Charges.

Owners of individual parcels are responsible for their own parcel contents insurance — the JMB’s insurance does not cover parcel interiors, owner belongings, or owner-installed fixtures.

Duty 4: Keep proper accounts and arrange audit

The JMB must prepare and maintain proper accounts for both the maintenance account and the sinking fund account. These must be:

  • Kept in separate bank accounts in the JMB’s name.
  • Maintained with accurate records of all income (Charges collected, interest) and expenditure (works, management fees, insurance, utilities).
  • Audited annually by a qualified auditor.
  • Made available to owners and to the COB on request.

The audited accounts must be presented at the AGM. An owner who cannot get sight of the accounts — or who suspects irregularities — can complain to the COB or file at the Strata Management Tribunal. See JMB compliance checklist → for what records the COB expects.

Duty 5: Convene the AGM

The JMB (acting through the JMC) must convene an AGM at the intervals prescribed by the SMA 2013 and its Regulations. The AGM is the owners’ primary accountability mechanism — it is where the committee reports on management, presents audited accounts, passes the budget, sets the charge rate, and submits itself for re-election. Failing to hold an AGM is a serious breach that owners can report to the COB.

Owners can also requisition an EGM when urgent matters require a general meeting between AGMs. See how to call an EGM →.

Duty 6: Maintain registers and records

The JMB must maintain a set of registers and records, including:

  • A register of parcel owners — name, address, parcel details, share units.
  • Minutes of all general meetings and committee meetings.
  • Copies of all contracts entered into by the JMB (maintenance contractors, managing agent, insurance policies).
  • The by-laws (prescribed and any additional by-laws registered with the COB).
  • All financial records, invoices, and bank statements for the maintenance and sinking-fund accounts.
  • Any correspondence with the COB.

These records must be available for inspection by parcel owners. Proper record-keeping is also essential for the smooth handover to the MC when strata titles are issued.

Duty 7: Enforce the by-laws

The JMB must enforce the by-laws that govern the scheme. The by-laws include:

  • Prescribed by-laws under the Strata Management (Maintenance and Management) Regulations 2015 — baseline rules on nuisance, obstruction, use of parcels and common property.
  • Additional by-laws passed by special resolution and registered with the COB — building-specific rules (pet rules, renovation hours, short-term rental restrictions, etc.).

Enforcement means issuing warnings, imposing fines (up to the maximum permitted under the Regulations), and escalating to the COB or Tribunal for persistent non-compliance. The JMB must enforce the by-laws consistently — selective enforcement weakens the by-laws and exposes the committee to challenge. For the fines framework, see strata house rules & fines →.

Duty 8: Comply with COB notices and orders

The Commissioner of Buildings has supervisory powers over strata management bodies. Where the COB issues a notice or order — requiring the JMB to carry out works, produce records, convene a meeting, or take a specific management action — the JMB is legally obliged to comply. Failure to comply with a COB order is itself a breach of the SMA 2013 and can result in escalating consequences.

Duties at a glance: summary table

DutyWhat it requiresKey account / documentConsequence of failure
Maintain common propertyKeep building and common areas in good repair; respond to faultsMaintenance account; contractor recordsCOB order; Tribunal claim for losses
Collect Charges & sinking fundSet levies by share units; collect monthly; pursue defaultersMaintenance account; sinking fund accountUnderfunded accounts; COB intervention
Effect insuranceFire and public liability at minimum; keep premiums paidInsurance policy scheduleUninsured loss; personal liability of committee
Accounts and auditSeparate accounts; annual audit; accounts at AGMAudited financial statementsCOB order; Tribunal for accounting irregularities
Convene AGMAt prescribed intervals; full agenda; proper noticeAGM minutesCOB complaint; EGM requisition by owners
Maintain registers and recordsOwner register; minutes; contracts; by-laws; accountsJMB records fileCOB order; difficulty at handover to MC
Enforce by-lawsWarnings; fines; consistent enforcementFine records; committee minutesBy-law challenges; Tribunal proceedings
Comply with COBAct on all COB notices and ordersCOB correspondence fileSMA 2013 breach; escalating COB action

Who carries out the duties: JMB vs JMC vs managing agent

FunctionLegal responsibilityWho typically executes itNotes
Policy decisions (budget, Charges, by-law changes)JMB (owners at general meeting)Owners at AGM/EGMCannot be delegated to the managing agent
Day-to-day management decisionsJMC (committee)Committee members; Chairman in urgent casesCommittee has delegated authority from the JMB
Operational execution (payments, maintenance, records)JMC is responsible; may delegate to managing agentManaging agent (if appointed)Managing agent acts as agent of the JMB; liability remains with the JMB
InsuranceJMB / JMCManaging agent procures; committee approvesPolicy must be in JMB’s name
AuditJMB / JMCQualified auditor appointed by committee; accounts presented at AGMCannot be waived or deferred indefinitely

Consequences of failing statutory duties

A JMB that neglects its statutory duties is exposed to:

  • COB investigation and orders — the COB can compel the JMB to act, appoint a managing agent, or take over management.
  • Strata Management Tribunal claims — individual owners can seek orders requiring the JMB to perform duties, produce accounts, or compensate for losses arising from neglect.
  • Personal liability of committee members — in cases of wilful default or breach of fiduciary duty, individual committee members may face personal liability, especially where the management body is uninsured or funds have been misused.
  • Difficulty in MC handover — a JMB that has not maintained proper records or accounts will create serious problems at the point of handover to the MC.

Tips for a well-run JMB

  • Adopt a written annual management plan at the start of each year listing all planned maintenance works, inspection dates, insurance renewal, and AGM date.
  • Maintain a master records file (physical or digital) for all key documents: by-laws, contracts, insurance policies, audited accounts, AGM minutes, COB correspondence.
  • Hold regular committee meetings (monthly or at least quarterly) and keep proper minutes.
  • Engage a qualified auditor early — waiting until the last moment before the AGM risks delays in presenting audited accounts.
  • Communicate proactively with owners: publish the AGM date, distribute the budget and draft accounts in advance, and respond to owner queries promptly.
  • Seek guidance from the COB whenever you are unsure about your obligations — it is far better to ask first than to face a complaint later.

Sources & official references

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

Common Questions

What are the main duties of a JMB under Malaysian law?
Under the Strata Management Act 2013, the main JMB duties are: (1) properly maintain and manage the building and common property; (2) determine and collect Charges and sinking fund contributions; (3) effect fire and public liability insurance; (4) keep proper accounts and arrange an annual audit; (5) convene the AGM; (6) maintain registers and records; (7) enforce the by-laws; and (8) comply with COB notices and orders. These are statutory duties — not optional.
Is the JMB legally required to maintain common property?
Yes. Properly maintaining and managing the building and common property and keeping them in good repair is one of the JMB's core statutory duties under the SMA 2013. A JMB that allows common property to fall into serious disrepair and takes no action is in breach of its legal obligations and can be ordered by the COB or Strata Management Tribunal to remediate.
What is the difference between Charges and the sinking fund?
Charges (maintenance fees) are the regular monthly contributions that cover operational costs: cleaning, security, utilities, routine maintenance, management fees, and insurance premiums. The sinking fund is a separate levy set aside for periodic and major capital works such as lift overhauls, roof replacement, or external repainting. Both are apportioned by each parcel's share units and must be kept in separate bank accounts in the JMB's name.
Does the JMB have to effect insurance on the building?
Yes. The JMB must effect and maintain at minimum fire insurance and public liability insurance on the building (common property). These insurance premiums are funded from the Charges collected from owners. The JMB's insurance does not cover the interior of individual parcels — owners are responsible for their own parcel contents insurance.
How often must the JMB's accounts be audited?
The JMB must have its accounts audited annually by a qualified auditor. The audited accounts must be presented to owners at the AGM. Owners who cannot obtain sight of the accounts, or who suspect irregularities, can complain to the COB or file at the Strata Management Tribunal.
Who enforces by-laws in a JMB-managed building?
The JMB (acting through the JMC or its managing agent) is responsible for enforcing the by-laws. Enforcement involves issuing written warnings, imposing fines up to the maximum permitted under the Regulations, and escalating to the COB or Strata Management Tribunal for persistent non-compliance. Enforcement must be consistent — selective enforcement weakens the by-law regime and exposes the committee to challenge.
What happens if a JMB fails to perform its statutory duties?
Consequences include: a COB investigation and orders compelling the JMB to act (or appointing a managing agent to take over); claims at the Strata Management Tribunal by aggrieved owners; and, in cases of wilful default or misuse of funds, potential personal liability of committee members. A JMB that has not maintained proper records will also face serious difficulties at the point of handover to the MC when strata titles are issued.
Can a managing agent take over the JMB's duties?
A managing agent can be appointed to execute day-to-day management operations (collecting payments, coordinating contractors, maintaining records) on the JMB's behalf. However, legal responsibility for statutory duties remains with the JMB and its committee. Policy decisions — such as setting the budget, passing by-laws, or approving major expenditure — must be made by the committee or at a general meeting and cannot be delegated to the managing agent.

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