Consultation on building management law reform begins

The government initiated a one-month public consultation on proposed legislative amendments to bolster owner involvement in building management and improve transparency for major decisions. In response to the Wang Fuk Court fire last November, the administration expressed concern over building management practices and pledged to implement institutional reforms to elevate management standards.

The Building Management Ordinance amendments encompass five key areas, including raising attendance and voting requirements for owner meetings regarding significant maintenance works and high-value procurements.

To qualify for Type 2 high-value procurements exceeding 20% of a building's average annual expenditure over three years, at least five percent of owners or 100 owners, whichever is fewer, must physically attend and vote in person. For maintenance projects, a tiered system is proposed, increasing quorum and in-person voting thresholds as project costs rise. Proposals also address proxy votes, limiting the number a single individual can represent to 20 owners or two percent of total owners in buildings with over 50 units.

The administration plans to publish a list of units where owners submitted proxy forms within 48 hours of an owner's meeting and add a section to proxy forms for owners to specify voting instructions. Contractors and consultants would need to disclose any conflicts of interest to all property owners. The plan includes clarifying procedures for calling owner meetings and granting authorities the power to intervene if a management committee is deemed dysfunctional. Owners dissatisfied with government intervention can appeal to a statutory appeal board.