1 DAY FAST TRACK COURSE – 11 March 2014 @ 9 am – 5.30 pm, Concorde Hotel, Kuala Lumpur
Conveyancing involving land and property transactions is a very wide topic which normally takes a number of years for a solicitor, banker, paralegal or developer’s executive to master. This is an intensive seminar that fast-tracks learning of conveyancing by compressing almost all relevant subjects into one day. Topics include sub-sale and purchase agreements, billing, rules and rulings of the Bar Council, real property gains tax, loan documentation and many more.
Participants are given practical knowledge and complete step-by-step guidance on practical conveyancing and the benefit of the experience of Ms YP Cheong, LLB Hons, Malaya who has been in practice for 34 years. She was the former Co-Chair of the Conveyancing Practice Committee of the Bar Council and remains an active member of the said Committee. She has conducted seminars and training for REDHA, bankers, lawyers, developers and chambering pupils. Participants are also given a detailed manual on conveyancing.
This Seminar conducted in the past had received excellent reviews. There is no other practical conveyancing seminar like the present Conveyancing with Confidence.
KEY BENEFITS OF ATTENDING
DEEPER UNDERSTANDING of issues and challenges of conveyancing
Enjoy an early bird Discount when you register by 28 February 2014!
Contact: CReST EvendZ Sdn Bhd
Suite 1706, Level 17, Lobby 1, Block A, Damansara Intan,
No.1, Jalan SS 20/27, 47400
Petaling Jaya, Selangor Darul Ehsan
Tel: +603-7726 8000 Fax: +603-7733 7007
Email: contact@crestevendz.com.my
Website: www.crestevendz.com.my
http://www.themalaysianinsider.com/malaysia/article/kl-condominium-residents-landmark-win-against-developer-is-a-win-for-everyo
Payment of Redemption Sum: Once all the conditions of the Loan have been fulfilled, the Purchaser’s Bank’s Solicitors will advise the release of the amount owing by the Vendor to his bank (“Redemption Sum”) and obtain the original title and other necessary documents from the Vendor’s Bank (please refer to Part 2 published in NST RED last week, 20th July).
Sometimes, the Redemption Sum is paid to the Vendor’s Solicitors for its onward transmission to the Vendor’s Bank. There have been cases where some banks have delayed in returning the required documents thereby delaying the Completion.
It is quite common to provide in the SPA that where the Vendor’s Bank does not return the required documents, say, within 14 days, then the Vendor must grant an extension of time for each day of delay which is in excess of said 14 days. This means that if the Purchaser’s Solicitor receives the documents, say, 22 days from the date of payment of the Redemption Sum, then the Purchaser is entitled to an extension of time of eight days to pay the balance purchase price (“Balance Sum”) without interest.
Presentation of Transfer and Charge (Property with Title): Once the Purchaser’s Bank’s Solicitor has obtained the required documents (discharge, original title and duplicate charge), he will stamp the charge (signed by the Purchaser in favour of the Purchaser’s Bank). He will also prepare all the relevant documents including the stamped Transfer received from the Purchaser’s Solicitors and the stamped discharge of charge from the Vendor’s Bank for presentation at the relevant land office or registry. Presentation is the submission of documents for registration.
After conducting a land search on the Property and presentation of the documents, the Purchaser’s Bank’s Solicitors will advise the Bank to release the balance of the Loan (i.e. Loan less Redemption Sum) to the Vendor.
Assignment and stamping of Loan documents (Property without Title): The Purchaser’s Bank’s Solicitor will, upon receipt of the document known as receipt and reassignment (“R&R”) and other documents from the Vendor’s Bank and the Deed of Assignment from the Purchaser’s Solicitors, proceed to date and stamp the Loan documents and register the power of attorney (“PA”) granted by the Purchaser to the Purchaser’s Bank at the relevant High Court. When the PA has been registered, the Bank’s Solicitors will advise the Purchaser’s Bank to release the balance of the Loan to the Vendor.
Real Property Gains Tax (RPGT): With effect from 1st January, 2012, a sale by a Vendor of his Property within two years of his date of acquisition will attract a real property gains tax of 10 per cent of the chargeable gain. However, if a Vendor has acquired his Property for more than five years, he is exempted from RPGT.
The SPA will provide for the Vendor to submit Form CKHT 1A and the Purchaser to submit Form CKHT 2A for RPGT purposes. If the Vendor is exempted from RPGT, he will also submit Form CKHT 3 to claim the exemption.
The CKHT forms must be signed by the Vendor and Purchaser and submitted within 60 days of the date of the SPA except where the consent of the state authority for the sale is required, in which case the time limit starts from the date of the said consent. Failure to submit the CHKT forms may attract penalty.
In the case where RPGT is payable, the Purchaser’s Solicitors shall retain two per cent of the purchase price for payment to the Director General of Inland Revenue together with Form CKHT 2A. If the amount paid is more than the actual RPGT due, then the Vendor may claim the excess paid from Lembaga Hasil Dalam Negeri Malaysia.
Vacant or legal possession : The SPA will provide for vacant possession of the Property to be delivered by the Vendor upon full payment of the Balance Sum by the Purchaser. Where the Property is sold subject to an existing tenancy, legal possession is to be delivered. The name and particulars of the tenant together with the amount of the monthly rent should to be stated in the SPA. It is prudent for the Purchaser’s Solicitors to obtain a copy of the tenancy agreement, if any, to check the terms and conditions of the agreement and advise his client accordingly.
Where the sale is subject to vacant possession, it is the responsibility of the Vendor to deliver vacant possession. If the sale is without vacant possession and subject to an existing tenancy, there should be provisions in the SPA for handing over or the assignment of the tenancy. Notice of the sale should be given by the Vendor or his Solicitors to the existing tenant. The SPA should also provide that the rent paid for the last month of the Completion Date should be pro-rated as at the date of payment of the Balance Sum by the Purchaser as well as the handing over of deposits held by the Vendor to the Purchaser.
In some cases, the parties may agree that the Purchaser may take vacant possession of the Property prior to the payment of the Balance Sum. Sometimes a monthly sum is payable by the Purchaser to the Vendor pending the completion of the transaction. This arrangement should be included in the SPA.
In such a case, the Purchaser may be required to pay the quit rent, assessment, service charges, insurance and other charges of the developer (where applicable). Proper provisions for this in the SPA will avoid any dispute between the parties.
Payment of Outgoings: Outgoings include quit rent, assessment, Indah Water charges, telephone, water and electricity charges and sinking fund. The Vendor is required to promptly pay for such outgoings incurred by him prior to handing over possession. The outgoings are normally apportioned as at the date of delivery of possession.
It is usual for the Vendor to indemnify the Purchaser in respect of the payment of the outgoings. The Purchaser is advised to check that all payments have been made and to obtain all relevant receipts from the Vendor. If payments have not been made, the Purchaser’s Solicitors may make arrangements with the Vendor to deduct any non-payment from the balance purchase price or obtain payment from the Vendor prior to release of the balance purchase price to the Vendor.
Conclusion: The process of ensuring the completion of the sale and purchase by the Vendor’s and Purchaser’s Solicitors is a complicated process. It is the responsibility of both Solicitors to ensure that the purchase of the Property is completed within the time frame specified in the SPA.
This process starts from the appointment of each Solicitor until the presentation and registration of the document of title in the name of the Purchaser or the assignment of the Property from the Vendor to the Purchaser, apportionment of outgoings and delivery of vacant possession.
However, this can only be completed with the co-operation of the Vendor and Purchaser including at times communicating with their respective banks to expedite the release of the redemption statement, release of loan documents and the loan.
The Vendor and Purchaser should be well informed of the terms and process of the purchase of the Property by their respective Solicitors.
Part 2 appeared in the NST- RED Advisory column last week.
The writer, YP Cheong @ Cheong Yoke Ping (Ms), is a member of the Conveyancing Practice Committee, Bar Council, Malaysia and this article has been contributed to National House Buyers Association (www.hba.org.my) for Education, Information and Empowerment
http://www.nst.com.my/latest/lifting-the-lid-off-a-sub-sale-1.109889#
PART 2 details the mechanics of the sale once in the hands of lawyers
Delivery of documents by Vendor: The SPA will provide for the Vendor to deliver the following documents upon or after the signing of the SPA and payment of the Deposit of 10 per cent:
• Quit rent and assessment receipts for the current year;
• Certified copy of Vendor’s identity card, income tax reference number and place of assessment;
• Redemption statement or bank statement of the Vendor’s bank or the bank installment receipts of the Vendor; and
• Copies of up-to-date receipts of service charges, sinking fund, insurance, etc of the developer, Joint Management Body (JMB) or Management Corporation (MC) in the case of stratified properties.
The purchase of a Property without title usually requires the Vendor to produce all documents tracing the transactions from the original purchaser to the Vendor, including all SPAs, loan agreements, assignments and receipt and reassignments.
Instrument of Transfer or Deed of Assignment: When the Vendor signs a sale and purchase agreement (“SPA”) to sell his Property, he is normally also required to sign an Instrument of Transfer (Form 14A) (“Transfer”), in a case of a Property with title, or a Deed of Assignment (“Assignment”), in a case of a Property without title.
The Transfer or Assignment is usually deposited with the Purchaser’s Solicitor as stakeholder. Sometimes the Assignment is kept by the Vendor’s Solicitor as stakeholder until the Purchaser’s bank (“Purchaser’s Bank”) has given a written undertaking to the Vendor’s Bank to release the loan of the Purchaser.
Developer’s confirmation: In the case of a sale of Property without title, the Purchaser’s lawyer must request the developer of the property for a written confirmation of the following:
(1) Full particulars of the Property;
(2) The name of the current purchaser (i.e. the Vendor) listed with the developer;
(3) The current chargee (developer’s bank) or assignee (Vendor’s Bank); and
(4) Total amount due to the developer under the SPA as at the date of confirmation.
Adjudication of Transfer: Adjudication is the process of determining the stamp duty payable on the instrument of Transfer or Assignment by the relevant authority. Stamp duty is payable on the relevant instrument based on its consideration or market value, whichever is higher. This is called ad valorem stamp duty.
The Transfer or Assignment is submitted online by the Purchaser’s Solicitor to the relevant stamp office, Lembaga Hasil Dalam Negeri (“LHDN”), which will then forward the particulars of the Property to the Valuation Department for valuation. Adjudication will normally take 1 – 7 days to be completed for a standard property.
Once the Purchaser’s Solicitor has received and downloaded the Stamp Notice (Notis Taksiran) from LHDN, he will proceed to stamp the Transfer provided that the Purchaser has deposited the correct amount of stamp duty with him.
The stamp duty is usually deposited earlier by the Purchaser to avoid any delay in the payment of the same.
The ad valorem stamp duty must be paid within 30 days of the date of the Stamp Notice, failing which, a penalty is chargeable.
Redemption Statement from Vendor’s bank and release of documents
The Vendor’s Solicitor will write to the Vendor’s Bank for a redemption statement which will set out the amount owing by the Vendor (“Redemption Sum”). The Vendor’s Bank is usually requested to furnish a written undertaking to refund the Redemption Sum to the Purchaser’s Bank in the event that:
(a) The discharge of the Vendor’s Bank cannot be registered for any reason (for Property with title); or
(b) The R&R or the Assignment cannot be perfected for any reason (for Property without title).
The Vendor’s Bank is also required to give to the Purchaser’s Bank a letter of undertaking that upon the receipt of the Redemption Sum by the Vendor’s Bank, it will:
(1) Release the original title, duplicate charge and instrument of discharge to the Purchaser’s Solicitor (for Property with title); or
(2) Deliver a document known as Receipt and Reassignment duly signed by the Vendor’s Bank, original loan documents and other documents in its possession (for Property without title).
Adjudication of Deed of Assignment and Receipt and Reassignment : Unlike a Transfer, an Assignment will not be dated or sent for adjudication soon after the date of the SPA. Where the rights over the Property have been assigned by the Vendor as security to the Vendor’s Bank, such rights have to be reassigned by the Vendor’s Bank to the Vendor via the Receipt and Reassignment which is to be signed by both the Vendor and the Vendor’s Bank.
Once the Redemption Sum is paid by the Purchaser’s Bank and the Receipt and Reassignment is dated, the Purchaser’s Solicitor will then date the Assignment and submit the Assignment for online adjudication and subsequent payment of ad valorem stamp duty. (This is one of the reasons why the purchase of a Property without title takes longer to complete than a Property with title).
Based on the Purchaser’s Solicitor’s earlier undertaking to the Purchaser’s Bank, he will then forward the duly adjudicated and stamped Assignment to the Purchaser’s Bank’s Solicitor to hold as security.
Vendor’s undertaking to refund: The Vendor is usually required to furnish a written undertaking to the Purchaser’s Bank to refund the Loan in the event that the Transfer cannot be registered for any reason resulting in the non-registration of the Charge in favour of the Purchaser’s Bank or in the event the Assignment cannot be perfected for any reason. This undertaking is to be delivered within 7-14 days, failing which additional time may have to given to the Purchaser to pay the balance purchase price without interest.
Part I appeared in the NST RED column last Friday.
The writer, YP Cheong @ Cheong Yoke Ping (Ms), is a member of the Conveyancing Practice Committee, Bar Council, Malaysia and this article has been contributed to National House Buyers Association for Education, Information and Empowerment
http://www.nst.com.my/red/understanding-the-sub-sale-contract-1.106532
DETAILS: We take a closer look at the sale and purchase agreement, the most important document in a property purchase
Introduction by HBA: The first rule of conveyancing is ‘buyer and seller must engage own lawyer’. Consult a lawyer right from the start and not after you have paid the deposit. Reasons to use your own lawyer:
Under the law you are deemed to have read and understood every document you have signed.
Furthermore, promises made by the seller or someone else about the deal may not be enforceable if the promises are not in writing unless you are able to provide proof of the same.
A lawyer cannot represent both the Vendor and Purchaser – if you are using the Vendor‘s panel lawyer, often, when disputes happen, the lawyer is unlikely to represent you against their bigger client.
A lawyer in general practice will be able to complete your purchase; however, lawyers with a focused real estate/conveyancing practice may prove a better choice if you are unsure of what to do, or have complications in your purchase agreement or mortgage. While you may think that you cannot afford the services of your own lawyer, consider whether you can afford not to.
Check out the FAQ on the HBA website: www.hba.org.my
Typical Sub-Sale transaction: A sub-sale of a property (“Property”) occurs when a Purchaser purchases a Property from a Vendor who is not a developer. Many purchasers sign sale and purchase agreements (“SPA”) without understanding the legal implications of the terms and conditions of the SPA.
A Purchaser should not hesitate to seek explanation from his Solicitor at all times, especially prior to the signing of the SPA and whenever amendments are to be made to the SPA, so that he is informed of the terms and conditions of the SPA. The Solicitor should and is expected to explain the terms and conditions of the SPA to his client.
Purchase Price and completion date: Besides the name and particulars of the Vendor and Purchaser, the SPA sets out the Purchase Price. It is usual for a deposit of 10 per cent (less any earnest deposit paid earlier, if any) to be paid upon the signing of the SPA by the Purchaser. The SPA will set out the date of the payment (“Completion Date”) of the balance purchase price (“Balance Sum”), which is usually:
• three months from the date of signing; or
• three months from the date of receipt by the Purchaser’s Solicitors of the consent from the relevant authority if the Property is subject to a restriction in interest; or
• three months from the date of the receipt of the confirmation of the developer in the case where the individual or strata title to the Property is not issued yet.
The SPA will, in most cases, provide a time extension of one month or more for the Purchaser to settle the Balance Sum. When an extension of time is granted, interest at an agreed rate, for example eight per cent, will normally be charged by the Vendor on the unpaid Balance Sum. This interest is usually charged on a daily basis from the day after the Completion Date until the date of full payment of the unpaid Balance Sum.
In a case where the Property is subject to a restriction in interest, the time for obtaining the relevant consent is usually agreed at between three and six months, and the time for obtaining the relevant consent may be extended.
The Purchaser should be aware that if he fails for any reason to pay the Balance Sum on the Completion Date or the extended date, as the case may be, the Vendor has a right to forfeit the Deposit as liquidated damages. The SPA normally provides for the Vendor to refund any money paid by the Purchaser which is in excess of the Deposit. To avoid the forfeiture of his Deposit, a Purchaser has to monitor the progress of his payment of his Balance Sum closely in co-operation with his Solicitor.
Inventory of fixtures, fittings, etc: It is the responsibility of the Purchaser to give his Solicitor an Inventory of fixtures, fittings, furniture and other items which may be included in the purchase of the Property and such inventory should be attached to the SPA to avoid any misunderstanding on the completion of the transaction. Fixtures and fittings include lights, air conditioners, fans and other items that are affixed to the Property. It is common, however, for the Vendor not to charge extra for normal lightings and fans.
Inspection of Property: It is important to note that the sale of Property is sold on a ‘as is where is basis’ and that the purchaser must be aware of the present state and condition of the subject property.
In such an event, the Purchaser shall be deemed to have inspected the Property and have satisfied himself by examination and inspection of the Property in every respect and the Purchaser shall be deemed to have full knowledge of the nature and effect thereof.
Encumbrances and redemption sum: A Property sold by the Vendor may be encumbered, i.e. the Vendor may have charged the Property to a bank to secure a loan granted by the bank to the Vendor.
Where no individual title or strata title has been issued for the Property, the security will be in the form of an assignment of the rights, title and interest of the Vendor in the Property (Deed of Assignment) and the Vendor‘s agreement with the Developer.
It is the Purchaser’s Solicitor’s duty to ascertain the amount owing to the Vendor’s bank (“Redemption Sum”). Where the Redemption Sum exceeds the Purchase Price or the Balance Sum, additional provisions are required to be made for payment of the amount in excess by the Vendor.
Purchaser’s loan and Difference Sum: The SPA will normally provide that the Purchaser will require a loan (“Loan”) to assist in the payment of the Balance Sum. Once the Purchaser has obtained his Loan, his bank (“Purchaser’s Bank”) will appoint a solicitor to prepare and complete the loan documentation for the release of the Loan.
Sometimes the Purchaser’s Solicitor may be appointed by the Purchaser’s Bank to attend to the loan documentation. It should be borne in mind that when the Purchaser’s Bank appoints the solicitor, that solicitor is acting for the Purchaser‘s Bank in the Loan transaction, and that solicitor does not act for the Purchaser in the Loan transaction even though the Purchaser may have to pay the legal fees due to that solicitor.
Where there is a title to the Property, the loan documents to be signed by the Purchaser are usually the Loan or Facility Agreement, and a Charge to be registered over the Property in favour of the bank.
Where there is no individual or strata title to the Property, the loan documents to be signed by the Purchaser are usually the Loan or Facility Agreement and an Assignment of the Property from the Purchaser to the bank as security, together with the grant of a Power of Attorney to the bank.
If the Purchaser’s Loan is less than 90 per cent of the Purchase Price, there will be a difference between the balance purchase price and loan amount to be paid by the Purchaser. This is usually referred to as the “Difference Sum”.
Although most SPAs do not specify an exact date for payment of the Difference Sum, the Purchaser should not delay the payment of the Difference Sum as this will delay the release of his Loan. When in doubt as to when he should pay, the Purchaser should contact his Solicitor. The Difference Sum must be paid by the Purchaser before the Purchaser’s Bank will release his Loan.
Conclusion: The Purchaser should be well informed and advised of the terms and conditions of the SPA, with the assistance of his Solicitor, so that he is able to appreciate the process of purchasing a Property in his best interests.
Terms and conditions of a SPA may vary from case to case, and in a forthcoming Part 2 of this article, the writer will cover more terms and conditions
relevant to a typical sale and purchase transaction.
Part 2 will appear in the next issue of RED NST on Fridays.
The writer, YP Cheong @ Cheong Yoke Ping (Ms), is a member of the Conveyancing Practice Committee, Bar Council, Malaysia and this article has been contributed to National House Buyers Association (www.hba.org.my) for Education, Information and Empowerment
NATIONAL HOUSE BUYERS ASSOCIATION
[HBA]
No. 31, Level 3, Jalan Barat,
Off Jalan Imbi, 55100, Kuala Lumpur
Tel: 03-2142 2225 | 012- 334 5676
Fax: 03-22601803
Email: info@hba.org.my
Web Site: www.hba.org.my
Read more: Understanding the sub-sale contract – RED – New Straits Times http://www.nst.com.my/red/understanding-the-sub-sale-contract-1.106532#ixzz20r6QTR5e
http://www.thesundaily.my/news/425612
IRD, banks fleeced in scam involving three parties
Posted on 5 July 2012 – 05:23am
Last updated on 5 July 2012 – 12:07pm
Charles Ramendran
newsdesk@thesundaily.com
KUALA LUMPUR (July 4, 2012): A syndicate of despatch clerks from banks and law firms has amassed millions in a scam involving the interception of Inland Revenue Department (IRD) stamp duty cheques.
The complex scheming of the syndicate, which even left the police bewildered by the way it was executed, went on undetected for a whole year since April 2011, causing losses to at least six local and foreign banks in the Klang Valley.
The scam revolved around an exchange of cheques between the despatchers and runners who made a fortune from it and were aware that it would take months or even years before they are found out.
Kuala Lumpur police chief DCP Datuk Mohmad Salleh said today that police busted the syndicate with the arrest of 10 people in various locations in the Klang Valley.
Those arrested included runners and despatch clerks from banks and law firms.
He said the suspects, including the mastermind, aged between 25 and 35, were arrested over five weeks beginning May 6. The 10th suspect was arrested on Tuesday.
The arrests led to the recovery of RM81,000 and 41 banker’s cheques worth a total of RM373,000 issued for IRD stamp duty payments.
Also seized were dud IRD rubber stamps, falsified documents and other items.
Mohamad Salleh explained that the scam involved three parties, namely:
>> the syndicate’s mastermind;
>> the bank despatch clerks who supplied the syndicate with cheques meant for IRD stamp duty payments for a variety of transactions such as loans; and
>> the law firm runners who buy the cheques from the syndicate.
He said the banker’s cheques were supposed to be delivered to the IRD by the despatchers who were expected to return with a stamped letter of receipt or acknowledgment from the tax department.
He said instead, the depatchers handed over the cheques made out to the IRD to the syndicate’s mastermind, who in turn used fake IRD rubber stamps and falsified signatures on the letters of acknowledgement, to avoid any suspicion by the bank.
“These cheques, all which were made out to the IRD’s stamp duty collector, remained untampered and were then ‘recycled’, he said at a press conference.
It is purchased mainly by runners from law firms who were given a specific amount of cash to get a banker’s cheque also for IRD stamp duty payments.
This is how the scam works: Say a bank sends out a RM10,000 cheque being an IRD stamp duty payment on behalf of their client through their despatcher. The despatcher hands the cheque over to the mastermind, who then passes him a letter of acknowlegment, purportedly from the IRD.
Later, a law firm runner who is given RM10,000 to buy an IRD Stamp duty cheque from a bank, contacts the mastermind and enquires if he has a cheque for the amount.
If there is one, the law firm runner collects the cheque and hands over RM7,000 to the mastermind, keeping RM3,000 for himself. The mastermind now calls up the bank despatch clerk and tells him the cheque is “sold.”
He then pays the despatcher who passed him the original cheque RM4,000, and pocketing the balance.
The law firm runner then makes payment for his employer’s client using the cheque he acquired from the mastermind.
However, the IRD stamp duty by the bank’s client remains unpaid.
The complicated scam was uncovered on April 26 after an alert officer at a bank in Cheras lodged a police report after spotting discrepancies in an acknowledgment letter submitted by a despatch clerk.
The Cheras commercial crime investigations department immediately launched a probe and broke the case within a week.
Mohmad said police are looking for another seven men who were part of the syndicate.
He said police are checking if the scam is widespread nationwide and advised banks to scrutinise records to ensure such transactions with IRD were in order.
FRANCHISE (AMENDMENT BILL) 2012 (D.R.28/2012 )
Second And Third Reading
SOME SALIENT POINTS as at 2 July 2012
New tax rules create a quandary for lending to family members
http://biz.thestar.com.my/news/story.asp…
CHARGING below market interest gets you in trouble with the taxman or the law against money-lending.
PUTRAJAYA: The Court of Appeal here has affirmed a High Court ruling that the Commissioner of Buildings (COB) was right in deciding that only unit owners and not their proxies can be elected as council members of high-rise management corporations.
The effect is that property owners can only have one representative in a management corporation regardless of how many parcels they own.
The Court of Appeal panel, comprising Justices Clement Allan Skinner, Linton Albert and Lim Yee Lan, upheld the decision by Penang High Court Justice John Louis O’Hara in what was the first judgment of its kind in the country.
Justice O’Hara had on June 29, 2010, ruled in favour of the COB, who is the Penang Municipal Council president, and a unit owner Yeap Dah Long who was the addressee in the COB decision involving the 36-storey Gurney Tower.
The tower houses The Gurney Resort Hotel & Residences owned by the Employees Provident Fund (EPF), a fitness centre, eateries and an office block. EPF owned 15 parcels with 259 rooms in the building and had more than one representative in the management corporation.
Following complaints from various parcel owners of the office block, COB had on March 3, 2010, ruled that the management corporation’s council was not properly constituted; only unit owners could be elected as council members; proxies could not be elected nor made chairman; and EPF was only entitled to appoint one representative in respect of the election although it owned 15 parcels.
COB also ruled the creation of two sub-management corporations – one for the hotel and one for the office block – was invalid.
Yesterday’s appeal was brought by Gurney Tower Management Corporation, Bondell Corporation Sdn Bhd which operates the fitness centre, and two proxy holders – M. Elangovan and Vincent Tan Boon Sun.
They had appealed on grounds that the COB had no jurisdiction to make the decision and had breached the rules of natural justice, and the High Court judge had committed errors of law in his decision.
The appellants were represented by G. Arumugam, the COB by Karin Lim and M. Murgan, and Yeap by K.N. Lee.
URL: http://thestar.com.my/news/story.asp?file=/2012/5/1/courts/11207162&sec=courts
