Independent legal clarification.. Beware... CSC can lower revised Reserve Price later.

Dear Fellow Teresa Ville Owners who have not signed CSA,

For benefit of all of us, we sought an independent opinion from a reputed legal firm on recent move by CSC to raise Reserve Price. It confirms our advice on the post dated April 4 "New Reserve Price not Guaranteed without amending CSA in EOGM..". Here is the legal opinion -

"The CSA stipulates a Minimum Price for the sale. The Minimum Price must be the highest of 

                   (a) $990m; 

                   (b) the market valuation as at the date of the close of the public tender and

                   (c) such amount as the CSC may determine upon the advice of Huttons.

 

The CSC has determined a Minimum Price of S$1.1b. So, until it is adjusted, the Minimum Price will be S$1.1b unless the market valuation as at the date of the close of the public tender is higher.

 

Unless the CSA is amended to increase the $990m figure in limb (a), the CSC is able to lower its determination at a later point upon the advice of Huttons. 

However, if the CSC’s determination is lower than $990m, the Minimum Price will nevertheless remain at $990m unless the market valuation is higher.

 

To “safeguard” the increase in the Minimum Price, it will be necessary to change the CSA so that limb (a) is changed to $1.1b. No EGM is required to be called to amend the CSA, it may be varied in writing by SPs holding not less than 80% of the share value and not less than 80% of the total strata area."

Our sincere appeal - DO NOT get enticed by the ploy of CSC and Hutton to sign the CSA, making you believe that revised RP, can not be lowered later, upon advice from Huttons. If they are sincere, let them amend minimum RP in CSA in an EOGM. Moreover, even the revised RP undervalues Teresa Ville as per the last Post on this blog.

Thank you for your attention and support to sign the petition you received in mail last month or copy the same from post of March 1 on this blog.