Proxy restrictions at en bloc sales meetings to take effect from Jan 18: MinLaw

Vivienne Tay
Published Fri, Jan 15, 2021 · 03:40 PM

STARTING Jan 18, 2021, amendments to 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 will come into force.

The move aims to encourage owners to participate in person in these general meetings and minimise the risk of proxy abuse, the Ministry of Law (MinLaw) said in a press statement on Friday.

MinLaw intends to amend the Second Schedule of the LTSA to set a cap for proxy holders at either 2 per cent of the total number of lots in a strata development or two lots, whichever is higher.

It will also improve the form of instrument for proxy appointments to allow the giver to explicitly direct the proxy to vote as the giver intends.

"Developments should make the necessary preparations before then to ensure compliance with the proxy restrictions from 2021," MinLaw said.

The new restrictions come as observers anticipate healthy momentum in the private residential market to carry over into the new year from 2020. Amid a calibrated supply in government land sales, more developers may look towards collective sale sites to tap this momentum.

A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Unsold residential units under development declined in Q3 2020 to 26,600 units, signalling undersupply in the primary market. The start of the previous en bloc cycle was in Q2 2016, when inventory fell to 23,000 units.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Property

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here