PLC Paper No. LS 95
Paper for the House Committee Meeting
of the Provisional Legislative Council
on 13 February 1998
Legal Service Division Report on
Building Management (Amendment) Bill 1998
Objects of the Bill
To amend the Building Management Ordinance (Cap. 344) (懀he Ordinance� to -
- empower an owners�corporation (orporation� to carry out renovation, improvement and decoration to the common parts of a building upon the owners passing a resolution to carry out such works at a meeting of the corporation;
- increase the requisite percentage of owners�shares from 10% to 30% for making objection to the convening of a meeting of owners for appointment of a management committee;
- add an alternative means of service of notice by depositing it in the letter box of the recipient;
- make technical amendments.
Provisional LegCo Brief Reference
2.HAB/BM/92/42 V issued by the Home Affairs Bureau on 21 January 1998.
Date of First Reading
3.11 February 1998.
Comments
4.The first object of the Bill is a result of the judgment in Incorporated Owners of Bayview Mansion v Chan Cheung Kit Mui, a Small Claims Tribunal Appeal case in 1995. The court ruled that the Ordinance did not give a corporation the power to improve the amenities or upgrade the condition of the building unless there was consent from all owners. The Bill confers a statutory power for a corporation to carry out renovation, improvement and decoration works to the common parts of building and provides that a resolution to such effect may be passed at a meeting of the corporation. Under the Third Schedule to the Ordinance, all matters arising at a meeting of the corporation at which a quorum is present (10% of the owners) shall be decided by a majority of votes of the owners, and each owner has one vote in respect of each share that he owns.
5.Section 3A of the Ordinance provides that owners of not less than 30% of shares may apply to the Secretary for Home Affairs for an order that a meeting of owners be convened to appoint a management committee. Such order will be of no effect if owners of not less than 10% of shares object. The Bill proposes to amend the percentage of owners�shares required for making objection to the order such that it is equivalent to the requisite percentage of shares applying for such order.
6.The Bill provides an additional means of serving notice of meeting to owners and notice of resignation of manager. The Administration also takes the opportunity to introduce certain technical amendments.
7.The Administration did not specifically justify in the Brief why the Bill is essential to the normal operation of the HKSAR Government. However, it is mentioned in paragraph 4 of the Brief that the Administration has been urged by District Boards and professional bodies to amend the Ordinance.
Public Consultation
8.According to the Brief, the Bill has taken into account the views of the District Boards, the Hong Kong Association of Property Management Companies Limited and the Hong Kong Institute of Housing.
Consultation with the Provisional LegCo Panel
9.The PLC Panel on Home Affairs has been briefed in October 1997. At that meeting, the Administration explained the reasons for introducing the Bill this session. An extract of minutes of the meeting is at the Annex.
Conclusion
10. The Legal Service Division is seeking clarification from the Administration on certain technical aspects. In light of a change in policy, members may wish to consider setting up a Bills Committee to study the Bill in detail.
Encl
Prepared by
Wong Sze-man, Bernice
Assistant Legal Adviser
Provisional Legislative Council Secretariat
6 February 1998
Bill/Bldg-man
