Subsidiary proprietors encouraged to attend AGMs in person

We thank Mr Stanley Kong for his letter “Ensure that majority of subsidiary proprietors vote on important issues” (May 3).

The Building Maintenance and Strata Management Act (BMSMA) empowers the Management Corporation Strata Titles (MCSTs) to make decisions relating to the management and maintenance of strata-titled developments.

Under the legislation, an MCST is required to convene annual general meetings (AGMs) for subsidiary proprietors (SPs) to discuss and decide on matters relating to strata-titled developments. Any general meeting of an MCST cannot commence without having a quorum of SPs (in person or by proxy) holding at least 30 per cent of the total share value of the development.

However, if no quorum is met, an MCST may proceed with the meeting half an hour after the appointed time as long as two or more SPs are present in person.

This is so that general meetings can proceed and timely decisions on the running of the estate can be taken.

All SPs who cannot attend a general meeting may appoint a proxy to represent them.

Nonetheless, we strongly encourage all SPs to attend the meeting in person, so SPs have a chance to raise questions and provide input on major decisions being made in their development.

The proxy system is one of the areas being examined as part of the Building and Construction Authority’s ongoing review of the BMSMA.

We agree with Mr Kong’s comments that expenses incurred by MCSTs, including the payment of fines, should be included in the financial statement of accounts.

During any general meeting, any SP who has queries on the statement of accounts can also raise them to the management council.

An SP may make an application to the Strata Titles Board on disputes relating to the duties of an MCST under the BMSMA, such as on the maintenance of common property, proceedings of a general meeting and making of by-laws, among others.

The Strata Titles Board is established under the BMSMA to mediate, hear and make an order for the settlement of disputes between an MCST and SPs or between SPs.

If the dispute cannot be settled amicably during mediation, the dispute will proceed to a hearing before the Board comprising former district judges and experts in the industry.