Federal Court: The Court does not have power to injunct the convening of a statutorily requisite annual general meeting (AGM)

Case update: Federal Court affirms the Court of Appeal ruling in Pengurusan Perbadanan Jaya One v Tetap Tiara Sdn Bhd (3 motions for leave)

On 12.12.2023, the Federal Court affirmed the Court of Appeal ruling:

  1. That the Court was not clothed with the power to prohibit the exercise of a statutory obligation mandated under the Strata Management Act 2013 [“SMA”]; and
  2. A proprietor can exercise its rights to vote in an AGM and/or EGM pending the determination of a dispute on (amongst others) alleged outstanding charges, where the disputed sum has been deposited in a stakeholder account.

All 3 motions for leave to appeal against the Court of Appeal’s decision were dismissed with costs.

Our previous article on the Court of Appeal’s grounds in respect of these appeals can be found vide the following link: https://cheehoe.com/does-the-court-have-the-power-to-injunct-the-convening-of-an-agm-egm/

Additionally, the Federal Court panel of 3 judges advised the Management Corporation to uphold the law and to convene its AGM as soon as possible to prevent any further dereliction of duties owed to proprietors under the strata regime.