Government Proposes Tiered Voting Thresholds for Major Building Repairs Costing HK$30,000 or More Per Flat

28Hse Editor  1 hours ago posted  1.3K #Wed Property Focus

The government earlier launched a public consultation on proposed amendments to the Building Management Ordinance, receiving a total of 550 written submissions. After taking into account the findings of the Independent Committee's report, the Home and Youth Affairs Bureau (HYAB) has proposed introducing a tiered in-person voting threshold system. Under the proposal, the minimum number of owners required to attend and vote in person would depend on the average share of repair costs borne by each flat.

To prevent decisions on major building repairs from being dominated or manipulated by a small number of proxy votes, the HYAB proposes a three-tier system for the procurement of major repair works where the average cost per flat reaches HK$30,000 or more. The higher the cost, the greater the number of owners required to vote in person.

The proposed thresholds are divided into three cost brackets: HK$30,000, HK$80,000 and HK$120,000 or above per flat. The corresponding in-person attendance and voting requirements would be 5% of owners or 100 owners, 8% or 150 owners, and 10% or 200 owners, respectively, whichever is lower.

Importantly, the existing quorum requirement for owners' meetings would remain unchanged at 10% of the total number of owners. This requirement would operate separately from the proposed tiered in-person voting system. An information session must also be held at least seven days before an owners' meeting. Otherwise, no resolutions concerning major repair works could be passed at that meeting.

Regarding proxy voting, which has attracted considerable public attention, more than half of the consultation responses opposed imposing a limit on the number of proxy votes an individual could hold. The main concerns were the difficulty of setting a uniform limit and the practical challenges of verifying and handling proxy votes exceeding that limit. The HYAB has therefore decided not to introduce a cap on proxy votes at this stage. Instead, it will focus on strengthening spot checks and verification procedures while exploring the introduction of electronic proxy voting.

To further prevent the falsification of proxy forms, the authorities have also proposed improving the proxy appointment form. Both the owner and the appointed proxy would be required to sign the document. A new declaration section would also require owners to confirm that they are aware of the meeting agenda and have authorised their representatives accordingly. The form would clearly state that submitting false documents constitutes a criminal offence and specify the relevant penalties.

Declarations would be mandatory even where no conflicts of interest exist. All declarations, including cases where individuals refuse to make a declaration, would have to be displayed prominently within the building for at least seven days and retained for six years for inspection by all owners.

Separately, Secretary for Development Bernadette Linn said the government would introduce a new tendering and tender evaluation service for major building repairs. Three pre-qualified lists would also be established, covering building inspection consultants, works supervision consultants and contractors.

The responsibilities of consultants would be clearly separated to prevent the potential for collusion arising from the previous practice of allowing the same consultant to handle both building inspections and works supervision.

In response to the reforms recommended in the Independent Committee's report on the Wang Fuk Court fire, the Director of Buildings recently issued a circular requiring external wall repairs in future major renovation projects involving more than one building to be carried out in phases.

During major repair works, building professionals and contractors must also ensure that windows in stairwells and lift lobbies are properly closed. 

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