MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) ORDINANCE

MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) ORDINANCE

LAWS OF HONG KONG

MULTI-STOREY BUILDINGS (OWNERS INCORPORATION)

ORDINANCE

CHAPTER 344





ARRANGEN[ENT OF SIECHONS.

Section. .................................Page.

PART I

SHORT TITLE AND
INTERPRETATION.

1. Short title................................. ... ... ... ... ... ... ... 3

2. Interpretation ....................... ... ... ... ... ... ... ... ... 3

PART II

MANAGEMENT
COMMITTEE.

3. Appointment of management committee ........ ... ... ... ... ... 4

4. Appointment of management committee after application to court ... 5

5. Notice of and voting at meetings ........... ... ... ... ... ... ... 5

6. Composition and procedure of management committee ... ... ... ... 6

PART III

INCORPORATION.

7. Application by management committee for registration of owners as a

corporation ............................... ... ... ... ... ... ... 6
8. Incorporation ............................. ... ... ... ... ... ... ... 7
9. Undesirable names ......................... ... ... ... ... ... ... ... 7
10. Change of name ............................ ... ... ... ... ... ... 7

11. Display of copy certificate of registration, etc . ... ... ... ... ... ... 8
12. Land Officer to maintain register of corporations ... ... ... ... ... 9
13. Conclusiveness of certificate of registration ... ... ... ... ... ... 9

PART iv.

PROVISIONS RELATING TO
CORPORATIONS.

14. Powers of corporation generally ........... ... ... ... ... ... ... ... 9

15. Tenants' representative ................... ... ... ... ... ... ... ... 10

16. Rights etc. of owners to be exercised etc. by corporation ... ... ... 10

17. Enforcement of judgments etc. against a corporation ... ... ... ... 11

18. Duties and powers of corporation .......... ... . ... ... 11

19. Corporation may sell or register charges against flat in certain circumstances 12

20. Establishment of funds .................... ... ... ... ... ... ... ... 12
21. Contributions to funds .................... ... ... ... ... ... ... ... 12

22. Recovery of contributions from owners ..... ... ... ... ... ... ... 13

23. Liability of occupier to pay contributions to funds ... ... ... ... ... 13
24. Distress for contributions ................ ... ... ... ... ... ... ... 14

25. Registered mortgagee may pay contribution and recover same from the owner 14
26. Management committee to certify matters relating to payment of contributions 14

27. Accounts of corporation ................... ... ... ... ... ... ... 14

28. Insurance policy to be made available by management committee for

inspection .............................. ... ... ... ... ... ... 15

29. Management committee to perform duties and exercise powers of corporation 15





Section. Page.
PART v.

DISSOLUTION OF MANAGEMANT COAMITTEE AND
APPOWNINT
OF ADMINISTRATOR.

30. Dissolution of management committee and appointment of administrator ... 15
31. Appointment of administrator by the court ... ... ... ... ... ... ... 16
32. Powers and duties of an administrator ... ... ... ... ... ... ... ... 16

PART VI.

WINDING UP OF CORPORATIONS.

33...................Winding up of corporations ... ... ... ... ... ... ... ... ... 16
34...................Liability of owners on winding up ... ... ... ... ... ... ... ... 17

PART VII.

MISCELLANEOUS.

35...............................Penalty for improper use of 'Incorporated Owners' ... ... ... ... 17

36...................False statement or information ... ... ... ... ... ... ... ... ... 17

37........................Saving for resolutions passed at meetings ... ... ... ... ... ... ... 17

38...................Secretary to maintain register ... ... ... ... ... ... ... ... ... 17
39...................Determination of owner's shares ... ... ... ... ... ... 18
40...................Powers of entry and inspection ... ... ... ... ... ... ... ... ... 18

41.................Power to make regulations ... ... ... ... ... ... ... .... ... ... 19

42...............................Governor may amend Second and Third Schedules ... ... ... ... 19

43.................Saving of owner's rights ... ... ... ... ... ... ... ... ... ... 19

First Schedule. Common parts .................. ... ... ... ... ... ... 19

Second Schedule. Composition and procedure of management committee ... 20

Third Schedule.................Meetings and procedure of corporation ... ... ... ... ... 22





CHAPTER 344.

MULTI-STOREY BUILDINGS (OWNERS

INCORPORATION).

To fiacilitate the incorporation of owners of flats in multi-storey

buildings, to provide for the management of such buildings and
for matters incidental thereto or connected therewith.


[19th June, 1970.]

PART I.

SHORT TITLE AND
INTERPRETATION.

1. This Ordinance may be cited as the Multi-storey Buildings
(Owners Incorporation) Ordinance.

2. In this Ordinance, unless the context otherwise requires-

'administrator' means a person appointed as an administrator under
section 30 or 31;

'building' means

(a)any building which consists of two or more levels, including
basements; and

(b)the land upon which such a building is erected and any land in
common ownership with such land;

common parts' means

(a)the whole of a building, except such parts as have been
specified or designated in an instrument registered in the Land
Office as being for the exclusive use, occupation or enjoyment
of an owner; and

(b)unless so specified or designated, those parts specified in the
First Schedule;

'corporation' means a corporation registered under section 8;

'court' means the District Court;

'deed of mutual covenant' means a document which

(a)defines the rights, interests and obligations of owners among
themselves; and

(b) is registered in the Land Office;

'flat' means any premises in a building which are referred to in a deed of
mutual covenant whether described therein as a flat or by any other
name and whether used as a dwelling, shop, factory, office or for
any other purpose, of which the owner, as between himself and
owners or occupiers of other parts of the same building, is entitled
to the exclusive possession;





(Cap. 128.) 'Land Office' means the Land Office established under the Land
Registration Ordinance and a District Land Office established
(Cap. 97.) under the New Territories Ordinance;
'Land Office?' includes, in relation to buildings on land registered
in a District Land Office, an Assistant Land Officer appointed
(Cap. 97.) under section 9 of the New Territories Ordinance, save that
only the Land Officer may specify forms;
'management committee' means a management committee appoint-
ed under section 3 or 4;
'owner' means-
(a) a person who for the time being appears from the records
at the Land Office to be the owner of an undivided share
in land on which there is a building; and
(b) a registered mortgagee in possession of such share;
'registered mortgagee' means-
(a) a person to whom an owner's interest in a building has
been mortgaged or charged under a mortgage or charge
which has been registered in the Land Office; and
(b) a person in whose favour a charge upon a flat has been
created by virtue of any Ordinance;
register means the register of corporations maintained under
section 12;
'share' means the share of an owner in a building determined in
accordance with section 39.
PART II.

MANAGEMENT
COMMITTEE

Appointment 3. (1) A meeting of the owners to appoint a management
of management committee may be convened by-
committee. (a) any person managing the building in accordance with the
deed of mutual covenant (if any); or
(b) any other person authorized to convene such a meeting
by the deed of mutual covenant (if any); or
(c) the owners of not less than five per cent of the shares.
(2) At a meeting convened under subsection (1) a manage-
ment committee may be appointed-
(a) in accordance with the deed of mutual covenant, if the
deed provides for the appointment of a management
committee; or
(b) if there is no deed of mutual covenant, or the deed
contains no provision for the appointment of a manage-
ment committee, by a resolution of the owners of not less
than fifty per cent of the shares.





4. (1) The court may, upon application by-

(a)the owners of not less than twenty per cent of the shares; or

(b) the Attorney General,

order that a meeting of owners shall be convened, by such owner as the
court may direct, to appoint a management committee.

(2) Upon the making of an order under subsection (1) the court may
order that the costs of the application shall be paid by the applicant or
by any person opposing the application.

(3) If a corporation is established, the corporation shall refund to
the applicant any costs paid by him in accordance with an order made
under subsection (2).

(4) At a meeting convened in accordance with an order made under
subsection (1), a management committee may be appointed by a
resolution passed by a majority of votes of the owners voting at the
meeting personally or by proxy.

5. (1) Notice of a meeting convened under section 3 or 4 shall be
served upon each owner in accordance with subsection (2) not less
than fourteen days before the date of the meeting

(a)in the case of a meeting convened by a person referred to in
paragraph (a) or (b) of subsection (1) of section 3, by the
convenor;

(b)in the case of a meeting convened by the owners referred to in
paragraph (c) of subsection (1) of section 3, by an owner
nominated by the convenors;

(c)in the case of a meeting convened in accordance with an order
made under subsection (1) of section 4, by the owner directed
by the court to covene the meeting.

(2) Service of a notice required to be served under subsection (1)
may be effected

(a) personally upon the owner; or

(b)by registered post addressed to the owner at his last known
address; or

(c) by leaving the same at the owner's flat.

(3) A notice required to be served under subsection (1) shall be
published in one English language and one Chinese language
newspaper specified in a list of newspapers issued for this purpose by
the Secretary Home and published in the Gazette.

(4) A notice under subsection (1) shall specify-

(a) the date, time and place of such meeting; and





(b)the resolutions which are to be proposed and, in particular, the
resolution for the appointment of a management committee.

(5) At a meeting convened under section 3 or 4-

(a)each owner shall, save where the deed of mutual covenant
otherwise provides, have one vote in respect of each share
which he owns;

(b)a vote may be cast either personally or by a proxy appointed in
accordance with sub-paragraph (2) of paragraph 4 of the Third
Schedule; and

(c)if a share is jointly owned by two or more persons, the vote in
respect of that share may be cast

(i) by a proxy jointly appointed by the co-owners; or

(ii) by one co-owner appointed by the others; or

(iii) if no appointment has been made under subparagraph (i)
or (ii) either personally or by proxy by the co-owner whose
name stands first in relation to that share in the register kept at
the Land Office.

(6) For the purposes of subsection (5), the appointment of a proxy
shall have no effect unless the instrument appointing the proxy is
produced at the meeting.

6. The provisions of the Second Schedule shall have effect with
respect to the composition and procedure of a management committee.

PART III

INCORPORATION.

7. (1) A management committee appointed under section 3 or 4
shall within fourteen days of such appointment apply to the Land Officer
for the registration of the owners as a corporation under this
Ordinance.

(2) An application under subsection (1) shall be in such form as the
Land Officer may specify and shall include the following particulars

(a)the name of the proposed corporation, which shall be in the
form 'The Incorporated Owners of ........................

..................

(Description ofbuilding)

(b) the name (if any) and address of the building;

(c)the address of the proposed-registered office of the
corporation; and

(d)the name and address of the-chairman and secretary of the
management committee.





(3) An application under subsection (1) shall be accompanied by
the following documents

(a)a copy of the deed of mutual covenant (if any) in respect of the
building;

(b)where an application has been made to the court under
subsection (1) of section 4, a copy of the order of the court;

(c)a copy of the resolution or other document evidencing,Ihe
appointment of the management committee under section 3 or
4 certified as correct by the chairman or secretary of the
management committee or by the chairman of the meeting at
which the resolution was passed; and

(d)a declaration by the chairman or secretary of the management
committee, in such form as the Land Officer may specify, that
the provisions of section 3 or 4 and section 5 have been
complied with.

8. (1) The Land Officer shall, if satisfied that the provisions of
section 3 or 4 and subsections (2) and (3) of section 7 have been
complied with, issue a certificate of registration in the prescribed form.

(2) With effect from the date of issue of the certificate of
registration under subsection (1)

(a)the owners for the time being shall be a body corporate with
perpetual succession and shall in the name of the corporation
specified in the certificate of registration be capable of suing
and being sued and, subject to this Ordinance, of doing and
suffering all such othe'r acts and things as bodies corporate
may lawfully do and suffer; and

'(b)the management committee appointed under section 3 or 4
shall be deemed to be the first management committee of the
corporation.

(3) A corporation shall have a common seal, the affixing of which
shall be authenticated by the signature of the chairman and secretary of
the management committee.

(4) A corporation shall have a registered office in the Colony.

(5) The Third Schedule shall have effect with respect to the
meetings and procedure of a corporation.

9. No corporation shall be registered by a name which, in the
opinion of the Land Officer, is undesirable.

10. (1) A corporation may, by resolution of not less than seventy-
five per cent of the votes of the owners voting either personally or by
proxy, change its name.





(2) If at any time a corporation is registered by a name which, in the
opinion of the Land Officer, is so similar to the name by which another
corporation is registered as to be likely to mislead, the Land Officer may
direct that the first mentioned corporation shall change its name within a
period of six weeks from the date of the direction or such longer period
as the Land Officer may allow.

(3) A corporation which makes default in complying with a direction
under subsection (2) shall be guilty of an ofrence and shall be liable on
conviction to a fine of fifty dollars for each day during which the default
continues.

(4) When a corporation changes its name under this section, the
Land Officer shall enter the new name on the register maintained by him
under section 12 in place of the former name, and shall issue an amended
certificate of registration.

(5) A change of name of a corporation under this section shall not
affect any rights or obligations of the corporation or render defective
any legal proceedings by or against the corporation, and any legal
proceedings which might have been continued or commenced against it
by its former name may be continued or commenced against it by its new
name.

11. (1) A management committee shall cause to be prominently
displayed

(a)a copy of the certificate or amended certificate of registration
issued under subsection (1) of section 8 or subsection (4) of
section 10 and a notice stating the address of the registered
office of the corporation

(i) at each entrance to the building to the owners of which
such certificate relates; and

(ii) on the outside of the door of the registered office of the
corporation; and

(b) a notice bearing the words 'Registered Office of .........

............... on the outside of the door

(name of corporation)
of the registered office of the corporation.

(2) A corporation which exhibits or uses any name of or for the
corporation in Chinese characters, whether or not such name is a
transliteration or translation of its name in its certificate or amended
certificate of registration issued under subsection (1) of section 8 or
subsection (4) of section 10, shall append to such name so used in
Chinese characters the Chinese characters

(3) In the event of a contravention of this section, every member of
the management committee shall be guilty of an offence and shall be
liable on conviction to a fine of fifty dollars unless he proves that the
ofrence was committed without his consent or





connivance and that he exercised all such due diligence to prevent
the commission of the ofrence as he ought to have exercised having
regard to the nature of his functions in that capacity and to all the
circumstances.

12. (1) The Land Officer shall maintain a register of cor-
porations.

(2) The Land Officer shall enter in the register the following
particulars of each corporation-
(a) the name of the corporation;
(b) the name (if any) and address of the building;
(c) the address of the registered office of the corporation;
(d)the name and address of the chairman and secretary of
the management committee;
(e) the name and address of any administrator.

(3) The secretary of the management committee shall, within
twenty-eight days of the date of any change in the particulars
registered under subsection (2), other than the particulars referred
to in paragraph (e) of that subsection, give notice thereof to the
Land Officer in such form as the Land Officer may specify.

(4) In the event of a contravention of subsection (3), the
secretary of the management committee shall be guilty of an
offence and shall be liable on conviction to a fine of one hundred
dollars for each day during which the contravention continues.

(5) Upon payment of such fee as may be prescribed, any
person may-
(a)inspect the register and any document required to be
submitted to the Land Officer under this Ordinance; and
(b)require a copy or extract of any such register or docu-
ment to be made and certified under the hand of the
Land Officer.

13. A certificate or amended certificate of registration issued
by the, Land Officer in respect of a corporation shall be conclu-
sive evidence that such corporation is incorporated under this
Ordinance.

PARTIV.

PROVISIONS RELATING TO CORPORATIONS.

14. (1) Subject to this Ordinance, at a meeting of a cor-
poration any resolution may be passed with respect to the control,
management and administration of the common parts and any
such resolution shall be binding on the management committee
and all the owners.





(2) Without prejudice to the generality of subsection (1), a
corporation may by resolution at a meeting remove from office and
replace any member of the management committee.

(3) A resolution for the removal of so many members of the
management committee as would reduce the number of members below
the number required under paragraph 1 of the Second Schedule shall not
have effect unless there is appointed, at the meeting at which such
resolution is passed, a sufficient number of further members as will
comply with such requirements.

15. (1) The members of an approved association may, by resolution
of the majority of the members thereof present and voting at a meeting
convened for that purpose, resolve to requisition a meeting of the
management committee in accordance with this section and shall
appoint from amongst themselves one person to be known as the
'tenants' representative':

Provided that the approved association shall not be entitled to
requisition the convening of more than one meeting in any period of
three months.

(2) Only a lawful occupier of a flat in the building and not an owner,
may be appointed as the tenants' representative.

(3) The secretary of a management committee shall, on the written
requisition of the approved association, which shall state the objects of
the meeting, forthwith proceed duly to convene a meeting of the
management committee within twenty-eight days from the date of
receipt of the requisition for the purpose of hearing the tenants'
representative on matters concerning the management of the building of
which the members of the approved association are tenants or
occupiers.

(4) In this section 'approved association- means an association

(a)formed to represent the interests of the tenants or occupiers
of flats in a building; and

(b)which has been approved for the purposes of this section by
the Secretary for Home Affairs.

16. When the owners of a building have been incorporated under
section 8, the rights, powers, privileges and duties of the owners in
relation to the common parts of the building shall be exercised and
performed by, and the liabilities of the owners in relation to the common
parts of the building shall, subject to the provisions of this Ordinance,
be enforceable against, the corporation to the exclusion of the owners,
and accordingly

(a)any notice, order or other document which relates to any of
the common parts of the building may be served upon the
corporation at its registered office; and





(b)any proceedings in court in respect of any of the common
parts of the building may be brought and pursued by or
against the corporation.

17. (1) If a judgment is given or an order is made against a
corporation, execution to enforce the judgment or order may issue

(a) against any property of the corporation; or

(b)with leave of the court in which such judgment was given or
order made, against any owner.

(2) An application for leave under paragraph (b) of subsection (1)
shall be made by summons served personally upon the owner against
whom execution is sought.

18. (1) The corporation shall-

(a)maintain the common parts and the property of the corporation
in a state of good and serviceable repair and clean condition;

(b)carry out such work as may be ordered or required in respect
of the common parts by any public officer or public body in
exercise of the powers conferred by any Ordinance;

(c)do all things reasonably necessary for the enforcement of the
obligations contained in the deed of mutual covenant (if any)
for the control, management and administration of the
building.

(2) A corporation may, in its discretion-

(a)engage and remunerate staff for any purpose relating to the
powers or duties of the corporation under this Ordinance or
the deed of mutual covenant;

(b)retain and remunerate accountants for the purposes of
auditing the corporation's books of accounts and preparing
the annual income and expenditure accounts and balance
sheets;

(c)retain and remunerate a manager or other professional trade or
business firm or person to carry out on behalf of the
corporation any of the duties or powers of the corporation
under this Ordinance or the deed of mutual covenant;

(d)insure and keep insured the building or any part thereof to the
reinstatement value thereof against fire and other risks;

(e)purchase, hire or otherwise acquire movable property for use
by the owners in connexion with their enjoyment of the
common parts or to satisfy any requirement of a





public officer or public body for the purpose of any
Ordinance;
(f)establish and maintain lawns, gardens and playgrounds
on the common parts;
(g)act on behalf of the owners in respect of any other
matter in which the owners as tenants in common have
a joint interest or liability.

19. If a deed of mutual covenant provides that if an owner
fails to pay any sum which is payable under the deed of mutual
covenant, a person may sell that owner's interest in the land or
register a charge against such interest in the Land Office, then,
notwithstanding the provisions of the deed of mutual covenant,
the corporation may, to the exclusion of such person, exercise
such power of sale or register such charge in the same manner
and subject to the same conditions as if it were the person re-
ferred to in the deed of mutual covenant.

20. (1) A corporation shall establish and maintain a general
fund-
(a)to defray the cost of the exercise of its powers and the
performance of its duties under the deed of mutual
covenant (if any) and this Ordinance; and
(b)to pay Crown rent, premiums, taxes or other outgoings
which are payable in respect of the building as a whole.

(2) A corporation may establish and maintain a contingency
fund-
(a)to provide for any expenditure of an unexpected or
urgent nature; and
(b)to meet any payments of the kind specified in sub-
section (1) if the fund established thereby is insufficient
to meet them.

21. (1) A management committee shall determine the
amount to be contributed by the owners to the fund established
and maintained under section 20 during such period, not exceed-
ing twelve months, as the management committee specifies.

(2) Subject to subsection (1) of section 14 and to subsection
(3), a management committee shall not increase the amount de-
termined in accordance with subsection (1).

(3) A management committee may increase the amount re-
quired to be contributed by the owners to the extent to which the
funds established and maintained under section 20 are insufficient
to meet any payment due by the corporation in respect of the cost
of complying with-
(a) an order of a court; or





(b)any notice, order or other document served upon the
corporation in relation to the common parts by a public officer
or public body under any Ordinance.

22. (1) The amount to be contributed by an owner towards the
amount determined under section 21 shall be

(a)fixed by the management committee in accordance with the
deed of mutual covenant; and

(b)payable at such times as the management committee may
determine.

(2) If there is no deed of mutual covenant, or if the deed of mutual
covenant does not provide for the fixing of contributions, the amount to
be contributed by an owner towards the amount determined under
section 21 shall be fixed by the management committee in accordance
with the respective shares of the owners.

(3) The amount payable by an owner under this section shall be a
debt due from him to the corporation at the time when it is payable.

(4) A certificate in writing signed by the chairman of the
management committee stating the amount to be contributed under this
section by an owner and when it is payable shall be admissible in
evidence in any proceedings as primafacie evidence of the facts stated
therein without further proof.

23. (1) If any amount payable under section 22 by an owner who is
not occupying a flat in the building concemed remains unpaid for a
period of one month after it has become due to the corporation, the
corporation may, without prejudice to any right of action
against the owner, by notice in writing addressed to
the occupier of the flat and served upon him either personally or by
registered post, demand such amount from the occupier, who shall,
subject to subsection (2), thereupon be liable to pay the same to the
corporation.

(2) Notwithstanding subsection (1), the liability of the occupier of a
flat to pay an amount demanded from him under subsection (1) shall
extend only to such amount of rent or other charge (exclusive of rates)
as is due at the time of service on him of the demand, or falls due
subsequently from him, in respect of his occupation of the flat.

(3) In any proceedings by a corporation to recover an amount
payable under subsection (1), it shall be presumed, until the contrary is
proved, that the amount claimed does not exceed the amount of rent or
other charge (exclusive of rates) due from the occupier at the time of
commencement of such proceedings.





(4) If an occupier of a flat has paid an amount in accordance with
this section

(a)that amount may, subject to the terms on which he occupies
the flat, be deducted by him from the rent or other charge due
in respect of his occupation of the flat; and

(b)any person, not being the owner, to whom such rent or other
charge has been paid subject to such deduction, may in like
manner as the occupier deduct such amount from the rent or
other charge due from him in respect of the flat.

(5) Any deduction by an occupier or other person under
subsection (4) shall operate as a discharge, to the extent of the amount
so deducted, of his liability for the rent or other charge.

24(1) Suject to the provisions of this section, the Distress
for Rent Ordinance shall apply to an amount payable under
section 22 or 23 as if the amount were rent payable to the cor-
poration as landlord of the owner's flat.

(2) A corporation may name as the defendant in any distress under
this section 'the person in occupation of' a flat, without specifying in
the application or in the warrant the name of any person in occupation
of the flat.

25. If an owner fails to pay any amount payable under section 22
within one month of the same becoming due and a registered mortgagee
of the flat in respect of which the owner is in default has paid such
amount on the owner's behalf, such payment shall be recoverable by the
registered mortgagee from the owner as if the amount of such payment
formed part of the principal sum due under the registered mortgage of
the flat.

26. A management committee shall, on the application of an owner,
a registered mortgagee, an occupier, such other person as is referred to
in paragraph (b) of subsection (4) of section 23 or a person authorized in
writing in that behalf by such owner, registered mortgagee, occupier or
other person, certify

(a)the amount payable in accordance with section 22 by the
owner;

(b) the extent to which such sum has been paid; and

(c)the name of the person by whom and the person on whose
behalf such payment was made.

27. (1) A management committee shall maintain proper books of
account and other records and shall prepare, not later than fifteen
months after the date of registration of the corporation and thereafter at
least once in every calendar year, an income





and expenditure account and a balance sheet which shall both be
signed by the chairman of the management committee and laid before
the corporation at the annual general meeting convened in accordance
with sub-paragraph (1) of paragraph 1 of the Third Schedule.

(2) The management committee shall permit an owner, a registered
mortgagee or any person authorized in writing in that behalf by an
owner or registered mortgagee to inspect the books of account at any
reasonable time.

(3) In the event of a contravention of subsection (1), every member
of the management committee shall be guilty of an offence and shall be
liable on conviction to'a fine of two thousand dollars unless he proves

(a)that the ofrence was committed without his consent or
connivance; and

(b)that he exercised all such due diligence to prevent the
commission of the offence as he ought to have exercised in
the circumstances.

28. If a corporation has effected any policy of insurance in respect
of the building or the common parts the management committee shall
permit an owner, a registered mortgagee or any person duly authorized
in writing in that behalf by an owner or registered mortgagee, to inspect
the policy of insurance and the receipt for the last pren-dum in respect
thereof at any reasonable time.

29. Subject to this Ordinance, the powers and duties conferred or
imposed by this Ordinance on a corporation shall be exercised and
performed on behalf of the corporation by the management committee.

PART V.

DISSOLUTION OF MANAGEMENT COMM=E AND
APPOINTMENT
OF ADMINISTRATOR.

30. (1) Subject to this section, the owners present at a meeting of
the corporation convened under paragraph 1 of the Third Schedule may
appoint an administrator and thereafter resolve that the management
committee be dissolved.

(2) A resolution under subsection (1) shall have no effect until a
copy thereof, certified as correct by the chairman of the meeting at
which the resolution was passed, is lodged with the Land Officer within
fourteen days after the date of the meeting.

(3) An administrator shall hold office from the date upon which a
certified copy of the resolution referred to in subsection (1) is lodged
with the Land Officer until





(a) the owners present at a meeting of the corporation convened
under paragraph 1 of the Third Schedule appoint(i) another
administrator; or

(ii) a new management committee; or

(b) the court appoints an administrator under section 31.

31. (1) The court may, upon application made to it by-

(a) an owner;

(b) a registered mortgagee of an owner's flat;

(c) an administrator; or

(d) the Attorney General, dissolve the management committee and
appoint an administrator, or remove and replace an administrator, as the
case may be.

(2) The court may direct that an administrator appointed under
subsection (1) shall hold office for an indefinite period or for a fixed
period on such terms and conditions as to remuneration or otherwise as
it thinks fit, and the remuneration and expenses of the administrator shall
be deemed to be part of the expenses of management of the building
under this Ordinance.

32. (1) An administrator shall have all the powers and duties of a
management committee and of the chairman and secretary thereof.

(2) An admini trator shall, within seven days of the date of his
appointment or the determination of his appointment, give notice thereof
to the Land Officer in such form as the Land Officer may specify.

(3) Any person who contravenes subsection (2) shall be guilty of
an offence and shall be liable on conviction to a fine of one hundred
dollars for each day during which the contravention continues.

PART VI.

WINDING UP OF CORPORATIONS.

33. (1) A corporation may be wound up under the provisions of Part
X of the Companies Ordinance as if it were an unregistered company
within the meaning of that Ordinance and the provisions of that
Ordinance relating to the winding up of an unregistered company shall,
in so far as they are applicable, apply to the winding up of a corporation.

(2) In applying the provisions of the Companies Ordinance under
subsection (1)

(a)a reference to a director of a company shall be deemed to be a
reference to a member of a management committee; and





(b)a reference to a member of a company shall be deemed to be a
reference to an owner.

34. In the winding up of a corporation under section 33, the owners
shall be liable to contribute, according to their respective shares, to the
assets of the corporation to an amount sufficient to discharge its debts
and liabilities.

PART VII.

MISCELLANEOUS.

35. Any person who, not being a corporation incorporated under
this Ordinance, uses a name or title containing the words '1ncorporated
Owners' or the Chinese characters therefor, or other words or Chinese
characters implying that such person is a corporation incorporated
under this Ordinance, shall be guilty of an offence and shall be liable on
conviction to a fine of five thousand dollars.

36. Any person who-

(a)in any form required by this Ordinance, or in any notice or
document given, issued or made for the purposes of this
Ordinance, makes any statement or furnishes any information;
or

(b)furnishes any information required to be furnished under this
Ordinance,

which he knows, or reasonably ought to know, to be false in a material
particular, shall be guilty of an offence and shall be liable on conviction
to a fine of five thousand dollars and to imprisonment for six months.

37. A resolution passed at any meeting convened under this
Ordinance shall not be invalid by reason only of the omission to give
notice of the meeting to any person entitled to such notice.

38. (1) The secretary of a management committee shall maintain a
register, in which each flat in the building concerned shall be separately
identified, and shall enter therein the following particulars with reference
to each flat

(a) the name and address of the owner; and

(b) the name and address of the registered mortgagee (if any).

(2) For the purposes of subsection (1)-

(a)the address of an owner shall be the address of the flat which
he owns; and





(b)the address of a registered mortgagee shall be his address
appearing in the registered mortgage,

unless the owner or registered mortgagee notifies the secretary of
the management committee in writing of some other address.

(3) Every person who becomes an owner or a registered
mortgagee of a flat shall forthwith give notice thereof to the
secretary of the management committee, who shall amend the
register accordingly.

(4) The register kept under subsection (1) shall, subject to
any resolution of the corporation at a meeting convened under
paragraph 1 of the Third Schedule, be open to inspection only
by an owner and a registered mortgagee of a flat in the building
concemed.

39. An owner's share shall be determined-

(a)in the manner provided in an instrument which is regis-
tered in the Land Office; or

(b)if there is no such provision, then in the proportion
which his undivided share in the building bears to the
total number of shares into which the building is divided.

40. (1) A member of a management committee and any
other person authorized in that behalf by the management corn-
mittee may, on reasonable notice to the occupier thereof, enter
a flat at any reasonable time for the purpose of-

(a) inspecting, repairing, maintaining or renewing-
(i) any common parts in the flat; or

(ii) any other property in the flat the condition of
which does or may affect adversely the common parts
or other owners;

(b)abating any hazard or nuisance which does or may
adversely affect the common parts or other owners.

(2) A magistrate may, if satisfied by information on oath
that it is necessary for any person to break into any flat which
he is empowered to enter under subsection (1), by warrant authorize
such person to break into the flat in the presence of a police
officer.

(3) Any costs incurred by the management committee in con-
nexion with the exercise by it of the powers conferred by sub-
paragraph (ii) of paragraph (a) of subsection (1) or paragraph (b)
of subsection (1) shall be recoverable by the corporation as a
civil debt from the owner of the flat in respect of which such costs
were incurred.





41. The Governor in Council may make regulations for any

of the following matters-

(a)the fees payable in respect of the registration or filing of any
documents submitted to the Land Officer under this Ordinance;

(b)the fees payable for the inspection or copying of any document
so registered or filed;

(c)the fees payable for the issue of any certificate under this
Ordinance;

(d)prescribing anything which is to be or may be prescribed under
this Ordinance;

(e) the better carrying out of the purposes of this Ordinance.

42. The Governor may, by order published in the Gazette,

amend the Second and Third Schedules.

43. Nothing in this Ordinance shall prevent an owner from

selling, assigning, mortgaging, charging, leasing or otherwise disposing
of or dealing with his undivided share in a building.

FIRST SCHEDULE. [s. 2.]

COMMON PARTS.

1.External walls and load bearing walls, foundations, columns, beams and
other structural supports.

2. Walls enclosing passageways, corridors and staircases.

3.The roofs, chimneys, gables, gutters, lightning conductors, aerials and aerial
cables.

4. Parapet walls, fences and boundary walls.

5. Vents serving two or more flats.

6.Water tanks, pumps, wells, sewers, drains, soil pipes, waste pipes,
channels, water-courses. gutters, ducts, downpipes, cables, conduits, refuse
chutes, hoppers and refuse container chambers.

7.Cellars, toilets, water closets, wash houses, bathhouses, kitchens and
caretakers' flats.

8. Passageways, corridors, staircases, landings, light wells, staircase window

frames and glazing, hatchways, roofways and outlets to the roofs and
doors and gates giving access thereto.

9.Lifts, escalators, lift shafts and machinery and apparatus used in connexion
therewith and the housing thereof.

10. Lighting apparatus, air conditioning apparatus, central heating apparatus,

fire fighting equipment and installations intended for the use and benefit of
all of the owners generally and any room or chamber in which such
apparatus, equipment or installation is fitted or installed.

11.Fixtures situated in a flat which are used in connexion with the enjoyment of






any other flat or other portion of the building.





SECOND SCIffiDULE. [ss. 6 & 42.]

COMPOSMON AND PROCEDURE OF MANAGEMENT
COMMITTEE.

1. The management committee shall consist of-

(a) such number of persons as is specified in the deed of mutual covenant;

(b)if there is no deed of mutual covenant or the deed does not specify the
number of persons which shall constitute the management committee, not
less than

(i) three persons if the building contains not more than twelve flats; or

(ii) five persons if the building contains more than twelve flats.

2. The owners shall, at a meeting convened under section 3 or 4, appoint-

(a)from amongst themselves, or in accordance with the deed of mutual
covenant, the members of the management committee;

(b)a chairman of the management committee, who shall be one of the persons
appointed as a member of the management committee;

(c)a secretary of the management committee who may, but need not be, one
of the persons appointed as a member of the management committee.

3. Subject to section 14 and paragraph 4, the members of the management
committee appointed at a meeting convened under section 3 or 4 shall hold office
until a new management committee is appointed and assumes office at the second
annual general meeting of the corporation.

4. (1) No person shall be appointed as a member of a management committee
who

(a) has been declared bankrupt;

(b) has entered into composition with his creditors;

(c)has at any time been sentenced to imprisonment for six months or more.

(2) A member of a management committee shall cease to be a member of the
committee if he

(a)becomes disqualified for appointment as a member of a management
committee under sub-paragraph (1);

(b) becomes incapacitated by physical or mental illness;

(c)absents himself from three or more consecutive meetings of the
management committee without the consent of the management
committee;

(d)resigns his office, by notice in writing delivered to the secretary of the
management committee;

(e)ceases to be an owner, if appointed in his capacity as an owner, or ceases to
be qualified to be a member according to the deed of mutual covenant;or

is removed from office by resolution of the corporation.

(1) At the second annual general meeting of a corporation convened in
accordance with sub-paragraph (1)(b) of paragraph 1 of the Third Schedule and
thereafter at every alternate annual general meeting, all members of the






management committee shall retire from office.

(2) At an annual general meeting of a corporation at which the management
committee retires under sub-paragraph (1) the corporation shall, in accordance with
this Ordmmee, appoint--

(a) a new management committee:





(b) a chairman of the management committee; and

(c)a secretary of the management committee, if the office of secretary of
the management committee is vacant.

(3) Members of the management committee who retire under sub-paragraph
(1) shall be eligible for re-appointment under sub-paragraph (2).

6. (1) A casual vacancy occurring in a management committee may be filled
by the management committee.

(2) If a casual vacancy occurs in the office of the secretary of a management
committee, the management committee may appoint an owner or any other
person to fill the vacancy till the next annual general meeting.

7. A management committee shall, in addition to any meetings held pursuant
to section 15, meet at least once in every period of six months.

8. (1) A meeting of a management committee-

(a) may be convened at any time by the chairman; and

(b)shall be convened by the secretary, at the request of any two members
thereof, within fourteen days of receiving such request.

(2) Notice of a meeting of the management committee shall be sent by post
by the secretary to each member of the management committee at least seven
days before the date of the meeting and every such notice shall specify the place,
date and time of such meeting.

(3) If a management committee resolves that it shall meet at specified
intervals and the resolution specifies the place, dates or days and times of such
meetings, the secretary shall send a copy of such resolution, and a copy of any
subsequent resolution of the management committee affecting the same, to each
member of the management committee by post, and sub-paragraph (2) shall not
apply in the case of any such meeting.

9. The quorum necessary for the transaction of business at a meeting of a
management committee shall be fifty per cent of the members of the management
committee:

Provided that the quorum shall in no case be less than three.

10. (1) A meeting of a management committee shall be ~resided over by-

(a) the chairman; or

(b)in the absence of the chairman, a member appointed as chairman for that
meeting by the management committee.

(2) All acts, matters or things authorized or required to be done by the
management committee may be decided by a majority of those present and voting
at a meeting of the management committee.

(3) At a meeting of the management committee, each member present shall
have one vote on a question before the committee and if there is an equality of
votes the chairman shall have, in addition to a deliberative vote, a casting vote.

(4) The secretary shall keep minutes of the proceedings at every meeting of a
management committee.

(5) Subject to this Ordinance, the procedure at meetings of a management
committee shall be as is determined by the management committee.





TIURD SCHMULE. [ss. 8(5) & 42.]

MEETINGS AND PROCEDURE OF
CORPORATION.

(1) The management committee shall convene-

(a)the first annual general meeting of a corporation not later than fifteen
months after the date of the registration of the corporation;

(b)an annual general meeting in every calendar year after-the calendar year
in which the first annual general meeting was held, and not later than ~n
months after the date of the previous annual general meeting;

(c)a general meeting of the corporation at any time for such purposes as
the management committee thinks fit.

(2) The chairman of the management committee shall convene a general
meeting of the corporation at the request of not less than five per cent of the
owners for the purposes specified by such owners within fourteen days of
receiving such request.

2. (1) Notice of a meeting convened under paragraph 1 shall be sent by the
secretary of the management committee by post to each owner at least seven
days before the date of the meeting.

(2) Every notice referred to in sub-paragraph (1) shall specify-

(a) the place, date and time of the meeting;

b)every resolution to be proposed or other matter to be discussed at the
meeting.

3. (1) The chairman of the management committee appointed under
paragraph 2 of the Second Schedule shall preside at a meeting of the corporation.

(2) if the chairman of the management committee is absent the owners at -a
meeting shall appoint an owner as chairman for that meeting.

(3) Subject to subsection (1) of section 10, all matters arising at a meeting
of the corporation at which a quorum is present shall be decided by a majority
of votes of the owners voting either personally or by proxy:

Provided that if the deed of mutual covenant provides for any resolution
requiring the affirmative vote of more than a simple majority of the owners
present either personally or by proxy, the provisions of such deed of mutual
covenant shall apply to any such resolution.

(4) if there is an equality of votes the chairman shall have, in addition
to a deliberative vote, a casting vote.

(5) (a) At any meeting of the corporation ion each owner shall, subject to
the provisions of any instrument registered in the Land Office and
subject to sub-paragraph (6), have one vote in respect of each share
which he owns.

(b)If any share is jointly owned by two or more persons the vote in
respect of that share may be cast

(i) by a proxy jointly appointed by the co-owners; or

(ii) by one co-owner appointed by the others; or

(iii) if no appointment has been made under (i) or (ii), either
personally or by proxy by the co-owner whose name stands first in






relation to that share in the register kept by the secretary of the
management committee under section 38.

(6) If a registered mortgagee is in possession of an owner's flat, such
mortgagee shall, to the exclusion of the owner, be entitled to exercise the voting
rights of such owner





(7) No resolution passed at any meeting of the corporation shall have effect
unless the same was set forth in the notice sent to the owners in accordance
with paragraph 2 or is ancillary or incidental to a resolution or other matter so
set forth.

(8) Nothing in sub-paragraph (7) shall preclude the passing of a resolution
as amended at a meeting of a corporation.

4. (1) At a meeting of the corporation the votes of owners may be given
either personally or by proxy.

(2) The instrument appointing a proxy shall be in writing signed by the
owner, or if the owner is a body corporate, under the seal of that body.

(3) The appointment of a proxy shall have no effect unless the instrument
appointing the proxy is lodged with the secretary of the man gement committee
not less than forty-eight hours before the time for the holding of the meeting at
which the proxy proposes to vote, or within such lesser time as the chairman
shall allow.

5. The quorum at a meeting of the corporation shall be-

(a)twenty per cent of the owners, in the case of a meeting at which a
resolution for the dissolution of the management committee under
section 30 is proposed; or

(b) ten per cent of the owners in any other case.
Originally 62 of 1970. Short title. Interpretation. First Schedule. (Cap. 128.) (Cap. 97.) (Cap. 97.) Appointment of management committee. Appointment of management committee after application to court. Notice of and voting at meetings. Third Schedule. Composition and procedure of management committee. Second Schedule. Application by management committee for registration of owners as a corporation. Incorporation. Third schedule. Undesirable names. 1948, s. 38, s. 17. Change of name. 1948, s. 38, s. 18. Display of copy certificate or registration, etc. Land Officer to maintain register of corporations. Conclusiveness of certificate of registration. Powers of corporation generally. Second Schedule. Tenants' representative. Rights etc. of owners to be exercised etc, by corporation. Enforcement of judgments etc. against a corporation. Duties and powers of corporation. Corporation may sell or register charges against flat in certain circumstances. Establishment of funds. Contributions to funds. Recovery of contributions from owners. Liability of occupier to pay contributions to funds. Distress for contributions. (Cap. 7.) Registered mortgagee may pay contribution and recover same from the owner. Management committee to certify matters relating to payment of contributions. Accounts of corporation. Third Schedule. Insurance policy to be made available by management committee for inspection. Management committee to perform duties and exercise powers of corporation. Dissolution of management committee and appointment of administrator. Third Schedule. Third Schedule. Appointment of administrator by the court. Powers and duties of and administrator. Winding up of corporations. (Cap. 32.) Liability of owners on winding up. Penalty for improper use of 'Incorporated Owners'. False statement or information. Saving for resolutions passed at meetings. Secretary to maintain register. Third Schedule. Determination of owner's shares. Powers of entry and inspection. Power to make regulations. Governor may amend Second Schedules. Saving of owner's rights.

Originally 62 of 1970. Short title. Interpretation. First Schedule. (Cap. 128.) (Cap. 97.) (Cap. 97.) Appointment of management committee. Appointment of management committee after application to court. Notice of and voting at meetings. Third Schedule. Composition and procedure of management committee. Second Schedule. Application by management committee for registration of owners as a corporation. Incorporation. Third schedule. Undesirable names. 1948, s. 38, s. 17. Change of name. 1948, s. 38, s. 18. Display of copy certificate or registration, etc. Land Officer to maintain register of corporations. Conclusiveness of certificate of registration. Powers of corporation generally. Second Schedule. Tenants' representative. Rights etc. of owners to be exercised etc, by corporation. Enforcement of judgments etc. against a corporation. Duties and powers of corporation. Corporation may sell or register charges against flat in certain circumstances. Establishment of funds. Contributions to funds. Recovery of contributions from owners. Liability of occupier to pay contributions to funds. Distress for contributions. (Cap. 7.) Registered mortgagee may pay contribution and recover same from the owner. Management committee to certify matters relating to payment of contributions. Accounts of corporation. Third Schedule. Insurance policy to be made available by management committee for inspection. Management committee to perform duties and exercise powers of corporation. Dissolution of management committee and appointment of administrator. Third Schedule. Third Schedule. Appointment of administrator by the court. Powers and duties of and administrator. Winding up of corporations. (Cap. 32.) Liability of owners on winding up. Penalty for improper use of 'Incorporated Owners'. False statement or information. Saving for resolutions passed at meetings. Secretary to maintain register. Third Schedule. Determination of owner's shares. Powers of entry and inspection. Power to make regulations. Governor may amend Second Schedules. Saving of owner's rights.

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