Proxy Restrictions at General Meetings for En Bloc Sales from 2021
29 SEP 2020
29 Sep 2020 Posted in Press releases
- The Ministry of Law (“MinLaw”) will amend the Second Schedule of the Land Titles (Strata) Act (“LTSA”) to restrict the number of owners a proxy can represent at general meetings for en bloc sales. The restrictions will come into force in January 2021.
- Today, under the LTSA, an owner of a strata-titled property may appoint a proxy to attend general meetings for en bloc sales and vote on proposals submitted at such meetings or the election of members of the collective sale committee on his behalf. However, there is no restriction on the number of owners a proxy may represent.
- We will strengthen the safeguards in the LTSA to encourage owners to participate in person in such general meetings and minimise the risk of proxy abuse. MinLaw intends to amend the Second Schedule of the LTSA to set a cap for proxy holders at either 2% of the total number of lots in a strata development or 2 lots, whichever is higher. We will also improve the form of instrument to appoint a proxy, to allow the proxy giver to explicitly direct his proxy to vote as he intended.
- These amendments will take effect from January 2021. Developments should make the necessary preparations before then to ensure compliance with the proxy restrictions from 2021.
- For the avoidance of doubt, other than the alternative meeting arrangements provided for in the COVID-19 (Temporary Measures) (Alternative Arrangements for Meetings for Management Corporations, Subsidiary Management Corporations and Collective Sale Committees) Order 2020, the relevant provisions in the LTSA relating to general meetings for en bloc sales shall continue to be in force.
MINISTRY OF LAW
29 SEPTEMBER 2020
Last updated on 29 Sep 2020