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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.

(E3) RLV TO DETERMINE RP

Subsidiary Proprietors are not allowed to see the marketing agent's RLV up close. We are only allowed to catch a brief glimpse if and when they flash the figures on a bright void deck wall where they are almost certainly invisible to the eye. SPs would also need to have photographic memories to digest the information in that glimpse. For all intent and purposes, the RLV is being kept hidden  away from SP scrutiny. One SC member has scrutinized it and found it wanting. The Vice Chairman of the Sale Committee has raised the red flag on the RP.  Owners should take note of his concerns as he is all that stands between US and a REPEAT of Rd 1. 

After getting a refusal from the MA, I then sent a request for a copy of the RLV to the Sale Committee through their own feedback channel. I assume they have a copy. It was a reasonable request and they should not have turned me down. Their polite answer; a referral back to uncooperative MA, a ritualistic bleating of LTSA requirements and a promised glimpse of the RLV in the offing. 
I respectfully paraphrase what the Court of Appeal (HT) had to say about Sale Committee and their obligations:

167 An SC cannot rely on a mechanistic or literal compliance with its statutory and contractual obligations to escape indictment for breach of its obligations as fiduciary of the subsidiary proprietors. The first principle is that an SC has to work for the benefit of all the subsidiary proprietors. This will no doubt involve going beyond just paying lip service to the relevant procedural rules under the LTSA and its mandate under the collective sale agreement. Indeed, in evaluating the conduct of an SC, the contextual conditions in which the power of sale is exercised is everything.

It is not too late for the SC to 'work for the benefit of all subsidiary proprietors' but time and patience is running out. They have to show they are on the SP's side and not working in the shadow of a MA who has $7 million+ riding on the sale and 7 million+ reasons to keeps things simple and under wraps. SPs  are just  a nuisance that get in the way of a sale. 
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Anonymous23 August, 2016
Advance notification of RLV calculation is needed to consult and fact check.
An MA confident of his Valuation calculation will welcome this. It presents him with an opportunity to vigorously defend his numbers with conviction and show his full control of the facts and figures.

The Chairman must take full control, lead and not just delegate because he sets the tone and direction. He is ultimately responsible for all decisions, even those he allows others to make on his behalf.

The all impt RP hinges on the RLV. At least 10 days is needed to digest it before meeting the MA so that a meaningful, productive exchange of ideas can take place.

Not releasing the RLV calculations in advance reflects on the character and integrity ( or lack of ) of those in charge.

Take charge, do the right thing, and let us have it now.


UPDATE (from FB)
Looks like a little 'digital ' pressure has had the necessary effect. Let's see how detailed their figures really are - they need to be spreadsheet quality.

BTW, dialogue sessions are the worst kind of interface for SPs. Way too much hassle to hold. Venue and time are not for everyone, only the gung-ho ever attend, and owners rarely have the presence of mind to ask questions on the spur, because information is all one-sided. No, digital allows for deeper reflection and is available to all 24 hrs a day. 


5 comments:

  1. Advance notification of RLV calculation is needed to consult and fact check.
    An MA confident of his Valuation calculation will welcome this. It presents him with an opportunity to vigorously defend his numbers with conviction and show his full control of the facts and figures.

    The Chairman must take full control, lead and not just delegate because he sets the tone and direction. He is ultimately responsible for all decisions, even those he allows others to make on his behalf.

    The all impt RP hinges on the RLV. At least 10 days is needed to digest it before meeting the MA so that a meaningful, productive exchange of ideas can take place.

    Not releasing the RLV calculations in advance reflects on the character and integrity ( or lack of ) of those in charge.

    Take charge, do the right thing, and let us have it now.

    ReplyDelete
  2. Few examples of tardiness are:

    1) Unexplained delays in posting the Statutory Declaration.( due Aug 19 )

    2) Badly worded, misleading instruction on CSA notice requesting all must sign.

    3) Explanation on RP revision that totally ignores earlier declared reasons ( silver zone ).

    The digital medium is neutral, it does not cause confusion and frustration. It's a tardy wordsmith, imprecise and fractured composition to blame.

    It seems to me the SC is a dutiful postman, relaying messages to the MA.

    The team is fractured and disorganized. It lacks synergy.

    Endgame predictably disastrous.

    Let's call the whole thing off.

    ReplyDelete
  3. It's a simple matter releasing RLV details. What's the hold up? Are the lawyers questioning the rights of SP's to this information? Is the SC pondering hard on the modalities of disseminating it?

    Contrast this with the free and easy manner in which the RP was released to the Public Domain. What is the rational of this very public disclosure? Explain the benefit of this move to future negotiations? This indiscretion has compromised the team. It suggests to me a committee that's eager for a quick and easy sell. Price optimization a secondary issue.

    SP's are the ones that pay MA his dues. He's obligated to ensure they get the best price, allay their fears, clear any doubts, answer all questions truthfully and completely. Why then is the MA hindering SP's efforts to scrutinize the RLV? Do SPs have a right to know? What is he afraid of?

    Why has the official reasons for reducing the RP fail to address the original stated reason ie Silver Zone, " Alternative construction methods"?

    With this payout why are SPs unable to upgrade? Housing options narrowed to equally old RIO CASA and Public Housing. Enbloc should enhance our housing options,should'nt it, MA?

    Has this SC/MA lost the plot?

    To whom do the SC/MA owe allegiance to? SPs, Developers or Themselves only?

    Honestly, I cannot tell. Don't bet your house until you can.

    PS. All questions will be asked during dialogue. CYA

    ReplyDelete
  4. Dear MA ( De facto leader of SC )

    SPs request you release RLV numbers, not cook it!
    Please explain the delay, it being available since 28 Nov 2015.

    Longer the delay, greater the suspicion, the more damming adverse reading of your actions by the courts. There are many angry SPs and equally many contentious issues.

    Lets have the raw numbers, digest it, brainstorm it during the dialogue and discuss other pertinent issues. Immediately thereafter, a signing of CSA in time to make the 3rd SD update.

    Testing our patience only opens up your integrity to greater scrutiny.

    ReplyDelete
    Replies
    1. refer to minutes of first Sale Committee meeting

      Delete