The order binds non-signing minority owners, and the completed sale must still go by public tender
A worked RES examination question on collective sale process, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A minority owner at Sunhaven Estate is unhappy with the Board's order approving the sale and instructs her lawyer to take it to the High Court, hoping the whole matter will be frozen while she does so. Her lawyer sets out the limits of that step and corrects one thing she has assumed. Which statement about the appeal is INCORRECT?
The answer, and why
Answer: C
The rule. An appeal to the High Court against a Board order lies only on a point of law, and lodging it does not suspend the order. The order binds non-signing minority owners, and the completed sale must still go by public tender.
Why C is correct. The question asks for the false statement. Lodging an appeal does not suspend the order — C says the opposite, so C is the statement to choose.
The other options.
- A is true — the order binds her despite her not signing.
- B is true — the appeal lies only on a point of law.
- D is true — the completed sale must still proceed by public tender.
Exam note. Appeal = point of law only, and it does not stay the order. Read the polarity word: the question wants the false one.
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