Disclaimer






"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."
Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
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.

Florence Regency

Florence Regency (formally N7 Hougang Ave 2) was privatised in Jan 2014. It is an ex-HUDC estate with 336 units and they have a collective-sale-from-hell going on there at the moment. 

Their annual AGM was held yesterday and suspended half way through to switch to the first Collective Sale EOGM for the purpose of electing a sale committee. They decided to do this in June, even though at that time they did not have the requisite 20%.

Perhaps they had the requisite 20% by Oct BUT they have flouted the rules and undermined the safety measures set out in the LTSA.

The Second Schedule is dedicated to holding enbloc meetings - it  is a legal document and cannot be ignored. The 20% requisition is a must and the meeting cannot start with less than the 30% Quorum reached within a strict 1 hour.  This 30% is HIGHER than the quorum of a regular AGM, which is set at 20%, the importance of which cannot be underestimated. The Collective Sale EOGMs have a HIGHER hurdle to pass. Even if 20% is not reached at a regular AGM, the meeting can proceed regardless. With a Collective Sale EOGM, the meeting cannot proceed without the 30% present or by proxy and and the collective sale attempt is over.

Was the Quorum reached? Was it even checked? You cannot piggyback on the quorum of the AGM - you cannot assume that those at the AGM are going to stay for the EOGM - the two meetings cannot be morphed into one because it weakens the safeguards against abuse.
So, was the quorum ascertained separately?

The Second Schedule cannot be sidelined as if it didn't matter - it seems that this EOGM may in fact be totally invalid.

The incoming MC (of which I believe consist of old and new members) should put an end to this farce and refuse to recognise the newly elected SC. No further EOGMs should be held in their name and the MA should be made to pay for the erroneously held EOGM... before sacking them.

What a mess.

No comments:

Post a Comment