MinLaw said it will strengthen the safeguards within the Land Titles (Strata) Act to encourage “owners to participate in general en bloc meetings and minimise the risk of proxy abuse”.
Starting January 2021, the number of owners a proxy can represent at general meetings for collective sales will be restricted, announced the Ministry of Law (MinLaw) on Tuesday (29 September).
Under the Land Titles (Strata) Act (LTSA), a strata-title property owner could appoint a proxy to attend general meetings for collective sales as well as vote on proposals submitted at said meetings. The proxy can also elect members of the en bloc sale committee on his behalf.
However, MinLaw noted that there is “no restriction on the number of owners a proxy may represent”.
With this, MinLaw said it will strengthen the safeguards within 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 two lots, whichever is higher,” it explained.
The ministry revealed that it will also improve the form of instrument for appointing proxy, to enable the proxy giver “to explicitly direct his proxy to vote as he intended”.
MinLaw has also advised developments to make necessary preparations before January 2021 to ensure compliance with the new proxy restrictions.
“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.” it added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org