Do owners’ corporation members receive salary?

According to Hong Kong'sBuilding Management Ordinance”, the Owners’ Corporation (abbreviated as “OC”) is a legal body jointly established by the owners of a building or housing estate, which is responsible for managing the common areas of the building and performing related management duties. Regarding the question of whether the members of the corporation have wages, the management committee members of the owners' corporation generally do not have a fixed salary, but can be reimbursed for expenses incurred in performing their duties; if the corporation hires professionals or a property management company, the relevant personnel will receive a salary. The specific arrangements need to refer to the Management Agreement of the corporation or the resolution of the owners' meeting. Here are the detailed instructions:

1. Members of the management committee of an OMC are generally voluntary

• No fixed salary:
  The members of the OC's "management committee" (i.e. committee members) are usually elected by the general meeting of owners.Most of the time it is voluntary, will not receive a fixed salary or compensation. This is because the committee member is one of the owners and participating in management is part of fulfilling common responsibilities with the aim of safeguarding the overall interests of the property.
• Reimbursable expenses:
  According to the regulations, committee members can apply to the corporation for reimbursement of reasonable expenses incurred in performing their duties (such as travel expenses, postage, etc.), but they must provide receipts to prove their claims.

2. Allowances may be granted in special circumstances

• The corporation may decide on its own allowance:
  If the corporation passes a resolution at the owners' meeting, it can pay "position allowances" to committee members within the scope permitted by the Deed of Mutual Covenant or Management Agreement. However, this situation is rare and requires the general consent of the owners in advance.

3. The corporation may employ salaried staff or a property management company

• Hiring employees or property management companies:
  The corporation may employ secretaries, financial personnel or property management companies to handle daily operations (such as cleaning, security, maintenance, etc.) as needed.These hired individuals or companies will receive a salary or service fee, but they are not members of the Corporation Management Committee.

4. Legal Basis

• The Building Management Ordinance (Cap. 344) does not require members to be paid a salary, but gives the OC the flexibility to decide whether to provide allowances or reimburse expenses.
• The corporation’s financial operations (including salary expenditure) must be transparent and its accounts must be disclosed to the owners on a regular basis.

5. Committee members cannot decide on their own to pay themselves allowances; the relevant allowances must be formally approved by the owners' meeting.