All En Bloc Owners Need to Know
In a bid to reduce the menace of what is often termed as ‘proxy abuse’ in En Bloc sale meetings, the MinLaw (Ministry of Law) is restricting the number of owners that can be represented by a proxy in general meetings for collective sales.
These new guidelines are expected to come into effect from the start of 2021 January.
The Ministry is in the process of bringing in amendments to the 2nd Schedule of Land Titles (Strata) Act (LTSA) in this regard.
This was revealed in an official announcement on September 29.
Under the present law, the strata-titled property owners have the right to appoint a proxy who can attend the en bloc sale meetings on their behalf and also vote on the different proposals including the all-important election of the CSC or (collective sale committee).
However, there isn’t any restriction on the number of property owners represented by a single proxy.
With the aim of preventing the misuse of proxy appearance and votes, amendments would be made to the 2nd Schedule of the LTSA.
As per this amendment there would be a capping on the number of owners who can be represented by a single proxy and it would not be more than two lots or 2% of the total number of lots, whichever is higher.
The amendment shall also cover the form of instrument which is required to appoint a proxy.
The improvement will allow the owners (proxy givers) explicit rights to exercise their intent by directing the proxies to vote as per their (owner’s) intention.
The Ministry also instructed the developments to make necessary changes for the LTSA amendments which shall be effective from January 2021 to ensure compliance with the latest restriction on proxies.