LCQ14: Regulation of owners' corporations
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Question:
There are views pointing out that in many newly completed private housing estates or those completed for around 10 years, the gradual accumulation of the sinking fund and financial surpluses following the formation of owners' corporations (OCs) may give rise to risks of OC governance and elections being infiltrated or even "hijacked" by appointed or authorised non-owner representatives, and this could potentially lead to a chain of problems such as bid-rigging, improper procurement of works, and jeopardy of owners' interests. In this connection, will the Government inform this Council:
(1) given that many office-bearers of OCs are owners serving on a voluntary or part-time basis, and they may not be familiar with regulations and procedures, of the training, professional support and risk alert measures currently provided by the Government to newly formed OCs through the District Building Management Liaison Team of the Home Affairs Department or other channels; whether the Government will consider requiring OCs, when handling major procurement contracts and works involving a hefty sum, as well as conducting change-of-term elections, to engage independent professionals (e.g. independent returning officers/legal advisers/procurement advisers) to perform gatekeeping, so as to enhance the credibility of the relevant procedures;
(2) whether the Government has, over the past five years, received the following complaints, requests for assistance or enquiries involving OC operation: (i) disputes involving change-of-term elections of OCs or decisions concerning large-scale works, where owners have requested the convening of an extraordinary general meeting of OCs in accordance with the requirement of receiving the request from not less than 5 per cent of the owners (i.e. as stipulated in paragraph 1 of Schedule 3 to the Building Management Ordinance (Cap. 344)); and (ii) disputes involving the authenticity of documents (including list of signatories or authorisation documents) submitted for the purpose of convening an extraordinary general meeting of OCs; if so, of the number of such cases, as well as the respective approaches adopted by the Government and the outcomes;
(3) regarding the aforesaid threshold requirement for convening an extraordinary general meeting of the OC at the request of not less than 5 per cent of the owners, whether the Government has evaluated if such threshold is suitable for application to buildings and properties of various scales, including but not limited to:
(i) single-block buildings or small housing estates (i.e. with a smaller number of owners), and whether the 5 per cent threshold may mean that an extremely small number of owners will be able to frequently initiate an extraordinary general meeting of the OC; and
(ii) large housing estates (i.e. with numerous owners), and whether the 5 per cent threshold will make it difficult for owners to initiate an extraordinary general meeting of the OC to handle urgent matters;
if the Government has evaluated, of the evaluation method, key findings and conclusions; if not, the reasons for that, and whether it will conduct the relevant evaluation; and
(4) given that during the debate on "Motion on support and rebuilding work after the fire at Wang Fuk Court in Tai Po" in this Council on January 14 this year, the Government indicated that, in order to enhance the protection of owners' rights and interests, it has formulated the directions for amending Cap. 344, including raising the voting thresholds for OCs to undertake large-scale maintenance works and high-value procurements, as well as improving the system for handling proxy instruments, of the specific timetable for the relevant work?
Reply:
President,
The Government is committed to assist owners in discharging their responsibilities on building management. We have in place a series of measures, including providing an effective legal framework (i.e. the Building Management Ordinance (Cap. 344) (BMO)) to enable owners to form Owners' Corporations (OCs), and offering support services to assist OCs and owners in handling building management matters.
To keep pace with the developments in the society and the evolving building management needs, the Government amended the BMO in 2024, and the Building Management (Amendment) Ordinance 2024 (the Amendment Ordinance) has taken effect since July 2025. When the Amendment Ordinance was passed by the Legislative Council (LegCo), the Government indicated that it would continue to follow up on various building management issues. Subsequently, the Chief Executive announced in the 2025 Policy Address that the Government would commence the next-phase review of the BMO, with a view to formulating proposals for further refining the Ordinance. In response to public concerns regarding building management, the Government will deepen institutional reforms and forge ahead the next-phase review and further amendments to the BMO. Five major amendment directions have been preliminarily proposed, including increasing the voting thresholds for decisions on large-scale maintenance works and high-value procurements, improving the mechanisms for proxy instruments and declaration of interests, clarifying meeting procedures, and strengthening the powers of the Authority.
Our reply to the question raised by Dr the Hon Webster Ng is as follows:
(1) To support the OCs (including newly formed OCs), District Building Management Liaison Teams under District Offices (DOs) have been providing Pre-Meeting Advisory Service for Owners' Corporations. The service is offered to newly formed OCs, newly elected Management Committees (MCs) of OCs, as well as those OCs anticipating the discussion of controversial issues at their owners' meetings. Prior to the owners' meetings, the MC members will be briefed on meeting procedures and provided with relevant information. The Home Affairs Department (HAD) also collaborates with tertiary institutions to deliver the LEAD Programme for MC members, which provides structured training courses with knowledge on building management. We also provide the Advanced LEAD Programme, in which experienced lawyers are engaged to explore common building management scenarios (such as water seepage, unauthorised structures, apportionment of management fee and litigation) along with the relevant legal provisions and case rulings. It aims to enhance the effectiveness of MC members in handling building management matters.
The Government recognises that building management can involve complex issues. Therefore, to address the various situations encountered by OCs in their day-to-day operations, the HAD continues to provide a range of support services, covering areas such as building management advisory service, legal advice and mediation, with the objective to offer professional support to OCs and owners in handling building management matters. These services include:
- Owners' Corporations Advisory Services Scheme: Property management companies are engaged by the HAD to provide OCs with free advisory services, assisting them in complying with statutory orders, handling third-party risks insurance and other building management matters;
- Free Legal Advice Service on Building Management: In collaboration with the Law Society of Hong Kong, the service provides legal advice on matters such as the interpretation of the Deed of Mutual Covenant or provisions of the BMO, as well as the responsibilities for maintaining common areas of buildings; and
- Free Mediation Service Scheme for Building Management, Building Management Dispute Resolution Service (BMDRS) or Panel of Advisors on Building Management Disputes: With the assistance of professionals from various fields (including retired judges / judicial officers, lawyers, accountants, surveyors and engineers, and mediators), these services assist in resolving disputes concerning the operation of OCs, financial arrangements and repair works.
The HAD will continue to assist OCs and owners in applying for and making use of the relevant services to obtain appropriate and effective support.
On the other hand, among the five major proposed amendment directions mentioned above, on large-scale maintenance works and high-value procurement, we recommend introducing a tiered system for quorum and voting-in-person thresholds. This aims to encourage more owners to personally participate in major decisions, reduce potential disputes and strength the protection of owners' rights. We will further refine the declaration of interest mechanism by requiring the work consultants to declare any relationships with contractors, thereby enhancing the transparency in the procurement process. In addition, we also recommend imposing a ceiling on the number of proxy instruments an individual can hold, and displaying a list of units which have signed proxy instruments in buildings. This will enhance the transparency of proxy instrument system and prevent meeting outcomes from being manipulated by a minority. As for whether OCs should be required to engage independent professionals, we will consider the feasibility of this recommendation, including the financial implications on owners.
(2) Over the past five years, the HAD has received approximately 1 630 complaints related to building management. The HAD does not have separate statistics categorised by the nature of the complaints.
If a DO becomes aware of a dispute within an OC regarding a request from no less than 5 per cent of the owners to convene an OC meeting, it will contact the Chairman of the MC to ascertain the circumstances. Should it be determined that the Chairman has failed to act in compliance with the requirements of the BMO, the DO will issue letters to the Chairman, requesting compliance with the statutory requirements. If a mutual agreement cannot be reached between the OC and the owners, the DO will urge the disputing parties to strengthen communication, including recommending relevant stakeholders to consider using mediation services, with the aim of assisting the parties involved resolve the dispute and allowing building management work to return to normal. As for cases involving suspected forgery of documents, we will urge the OC or owners to report the matter to the relevant law enforcement authorities (i.e. the Police).
(3) On one hand, the BMO grants the MC of an OC the authority and responsibility to handle and execute building management duties on behalf of the owners. On the other hand, it also empowers owners to oversee the operations of the OC and its MC. Regarding the BMO provision that allows no less than 5 per cent of the owners to request the MC Chairman to convene an OC meeting, the original intent behind setting this threshold is to safeguard owners' right to participation. It provides owners with a legitimate channel to raise matters of concern and require the Chairman to convene an OC meeting for discussion. This threshold also takes into account the BMO requirement that OC meetings must have a quorum of 10 per cent of owners in attendance, thereby ensuring that discussed items reflect a certain level of concern and consensus and allowing meetings to proceed effectively.
We take note of Member's views and will consider them as part of the review of the BMO.
(4) Compared to the amendment exercise in 2024, the current review involves broader and more complex issues. The Government will first present the various proposed amendment directions to the LegCo to initiate subsequent discussions. We will also seek views from different stakeholders, such as OCs, owners, the property management industry, and various political groups. Furthermore, district opinions will be gathered through the Working Groups on Building Management established under District Councils, with the aim of finalising the concrete legislative proposals as soon as possible for submission to the LegCo for deliberation.
Ends/Wednesday, February 4, 2026
Issued at HKT 15:00
Issued at HKT 15:00
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