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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

Horizon Towers minority going for blood

Horizon Towers saga roars back to life with new lawsuit

Business Times – 26 Jan 2010

'According to documents filed with the High Court, these minority owners are looking to reclaim close to $1 million in legal and administrative costs which they say they’ve incurred during the lengthy fight to keep their homes.'

'They have served writs on former sales committee chairman Arjun Samtani and member Tan Kah Gee, alleging that they were ‘key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process’.

The minorities, in their claim, allege that Mr Samtani and Mr Tan had ‘pushed for a quick sale of the property for their personal benefit’, because both had bought additional units in Horizon Towers, at the start of the collective sale process, and were keen to profit from that.'

Mr Samtani is represented by N Sreenivasan from Straits Law Practice. There's no finer counsel out there, so this SC member is well represented.

If the minority win; it would have a warning effect on anyone contemplating joining/starting a sale committee to further their own agenda. If buying up second units at the start of an en bloc does not throw a cloud of suspicion on a member's true motives, then I don't know what does. It may have happened in the past, before the Court of Appeals recommendation of full disclosure of second units etc at AGMs, but that should not absolve them from having impure motivation. Integrity does not need legislation, it is simply expected and if these minority owners can show that the two SC members acted in their own best interests only, then they have a chance at winning. 

Business Times – 27 Jan 2010

1 comment:

  1. I think this law suit is good in a sense, whether who wins does not matter (though I wish the minority would). It will cause the 'would be' sales committee to be very careful; that if they should want to start en bloc, either do a good job to get 100% agreement or don't even start and end up with hassle of legal tussles.

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