10. The Third Schedule to the principal Act is amended —(a) | by deleting paragraph 2 and substituting the following paragraph:“Disclosure of conflict of interests |
2.—(1) If a person standing for election as a member of a collective sale committee is aware of any conflict of interest or potential conflict of interest, if any, with his duties or interests as a member of the collective sale committee (should he be elected) arising from —(a) | his holding of any office; | (b) | his interest in any contract, whether alone or together with any of his associates; | (c) | his possession or ownership of any lot or common property that may be the subject of the collective sale, whether alone or together with any of his associates; | (d) | any direct or indirect relationship he or any associate of his has with any property developer, property consultant, marketing agent or legal firm; | (e) | the holding of any office by any of his associates; | (f) | his associate’s interest in a contract; or | (g) | his associate’s possession or ownership of any lot or common property that may be the subject of the collective sale, |
he shall, before his election, declare at the general meeting convened for such election, the nature and extent of all such conflicts of interest or potential conflicts of interest. |
(2) The election of any person who fails to comply with sub‑paragraph (1) shall be void. |
(3) If a member of a collective sale committee becomes aware of any conflict of interest or potential conflict of interest, if any, with his duties or interests as a member of the collective sale committee arising from —(a) | his holding of any office; | (b) | his interest in any contract, whether alone or together with any of his associates; | (c) | his possession or ownership of any lot or common property that may be the subject of the collective sale, whether alone or together with any of his associates; | (d) | any direct or indirect relationship he or any associate of his has with any property developer, property consultant, marketing agent or legal firm; | (e) | the holding of any office by any of his associates; | (f) | his associate’s interest in a contract; or | (g) | his associate’s possession or ownership of any lot or common property that may be the subject of the collective sale, |
he must, within the relevant period, declare in writing to the chairperson of the collective sale committee, the nature and extent of all such conflicts of interest or potential conflicts of interest. |
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(4) The collective sale committee whose member has made any such declaration under sub-paragraph (3) shall, within 7 days after the making of the declaration, give notice of the making of the declaration by causing a copy of the declaration to be affixed to a conspicuous part of each building comprised in the strata title plan or development, as the case may be. |
(5) For the purposes of sub-paragraph (3), “relevant period” means —(a) | in the case of a person who, on the date of commencement of section 10(a) of the Land Titles (Strata)(Amendment) Act 2010, is a member of a collective sale committee, a period of 30 days after that date; or | (b) | in any other case, 7 days after becoming aware of all conflicts of interest or potential conflicts of interest, if any, with his duties or interests as a member of the collective sale committee arising from the circumstances described in sub-paragraph (3). |
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(6) For the purposes of sub-paragraphs (1) and (3), a person, A, is an associate of another person, B, if —(a) | A is the spouse or a parent, remoter lineal ancestor or step-parent or a son, daughter, remoter issue, step-son or step-daughter or a brother or sister, of B; | (b) | A is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B or, where B is a corporation, of the directors of B; | (c) | B is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A or, where A is a corporation, of the directors of A; | (d) | A is a person with whom B has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together with respect to the acquisition, holding or disposal of shares or other interests in, or with respect to the exercise of their voting power in relation to, any property developer, property consultant, marketing agent or legal firm; | (e) | A is a corporation in which B, alone or together with other associates of B as described in sub-paragraphs (b) and (c), is in a position to control not less than 5% of the voting power in A.”; |
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| (b) | by inserting, immediately after sub-paragraph (e) of paragraph 5, the following sub-paragraph:“(ea) | if the person is removed from office by the collective sale committee in accordance with paragraph 8 on the ground that an application to a Board has been made under section 84A during his tenure as a member and the person is a subsidiary proprietor who has not executed the collective sale agreement to which the application relates;”; |
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| (c) | by deleting sub-paragraphs (a) to (g) of paragraph 7(1) and substituting the following sub-paragraphs:“(a) | to appoint any advocate and solicitor, any property consultant or marketing agent in connection with a collective sale where the collective sale committee is not already authorised at a general meeting to make such appointments; | (b) | to approve the apportionment of sale proceeds; and | (c) | to approve the terms and conditions of the collective sale agreement.”; |
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| (d) | by deleting the words “meeting under” in paragraph 7(2) and substituting the words “meeting for any of the purposes in”; | (e) | by deleting sub-paragraphs (3) and (4) of paragraph 7 and substituting the following sub-paragraphs:“(3) After the subsidiary proprietors referred to in section 84A(1) or 84FA(2) have signed a collective sale agreement but before the launch for sale referred to in paragraph 11, the collective sale committee must convene a meeting of subsidiary proprietors, of which at least 7 days’ notice is given —(a) | to give an update on the total number of subsidiary proprietors who, immediately before the date of the meeting, have signed the collective sale agreement; and | (b) | to provide information on the sale proposal and the sale process. |
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(4) As soon as practicable after the close of the public tender or public auction referred to in paragraph 11 or, where applicable, after the collective sale committee has entered into a private contract under that paragraph, the collective sale committee must convene a meeting of subsidiary proprietors, of which at least 7 days’ notice is given —(a) | to provide information on the number of offers received for the collective sale and the respective prices so offered; and | (b) | to provide information on the terms and conditions of the sale and purchase agreement.”; |
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| (f) | by deleting sub-paragraph (2) of paragraph 8 and substituting the following sub-paragraph:“(2) A decision of the majority of members of the collective sale committee present and voting at any meeting of the collective sale committee shall be a decision of the collective sale committee except that where a management corporation for a strata title plan has only 2 subsidiary proprietors, the decision of the member who owns more than 50% of the aggregate share value of all the lots comprised in the strata title plan shall be the decision of the collective sale committee.”; and |
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| (g) | by renumbering paragraph 12 as sub-paragraph (1) of that paragraph, and by inserting immediately thereafter the following sub-paragraph:“(2) A collective sale committee that is constituted for the purposes of a collective sale of all lots and the common property in a strata title plan to which section 84A or 84FA applies, or a collective sale of all the flats and land in a development to which section 84D or 84E applies, shall be dissolved if —(a) | in the case of such a committee that is constituted before the date of commencement of section 10(g) of the Land Titles (Strata) (Amendment) Act 2010, at the end of a period of 12 months after that date; or | (b) | in any other case, at the end of a period of 12 months after the committee is constituted, |
there is no collective sale agreement for that collective sale or no subsidiary proprietor or proprietor, as the case may be, has executed a collective sale agreement for that collective sale.”. |
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