Singapore

Proxy representation at collective sales meetings to be limited

From next January, the number of owners a proxy can represent at general meetings for collective sales will be restricted, said the Ministry of Law (MinLaw) yesterday.

This is among changes to the Land Titles (Strata) Act to encourage owners to participate in person and minimise the risk of proxy abuse.

Proxy holders will be limited to representing owners of no more than 2 per cent of the total number of lots in a strata development, or two lots, whichever is higher.

There is currently no restriction on the number of owners a proxy may represent.

The proxy giver may explicitly direct his proxy to vote as he intended, added MinLaw in a statement.

An owner of a strata-titled property may appoint a proxy to attend and vote on proposals submitted at meetings for collective sales.

BEHALF

The proxy can also vote on an owner's behalf on the election of members of the collective sale committee.

Mr Nicholas Mak, head of research and consultancy at ERA Realty, said the changes will be positive for the collective sales process.

There have been instances where those with strong motivation to vote one way or the other at such meetings persuade their fellow strata-title owners to give them their proxy votes, he said.

These parties could gather significant numbers of proxy votes and influence the sale process in a way that may run counter to the proxy-givers' wishes, he added.

Separately, MinLaw said real-time electronic voting will be an option for some meetings such as general meetings of companies, charities and registered societies amid the pandemic.

This option kicks in from tomorrow and will also apply for insolvency- and bankruptcy-related meetings. - THE STRAITS TIMES

Property