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Owners' Corporation (OC)According to Hong KongBuilding Management Ordinance (Cap. 344)A statutory body formed by the owners of a building or housing estate whose primary purpose is to manage and maintain the common affairs of the property.
The owners’ corporation can effectively integrate resources, maintain property quality, and protect the rights and interests of owners. Its role is particularly important in Hong Kong's high-density residential environment, helping to balance individual interests with the overall development of the community.
1. Unified management of public areas
- Responsible for the daily management, maintenance and cleaning of public facilities in the building (such as elevators, corridors, gardens, parking lots, etc.).
- Ensure that fire protection systems, electrical equipment, etc. meet safety standards to ensure the safety of residents.
2. Maintain property value
- Through regular maintenance and repairs, the life of the building can be extended and the value of the building can be prevented from falling due to disrepair.
- Coordinate large-scale projects (such as exterior wall renovation and water pipe replacement) to improve the overall living environment.
3. Financial management
- Charge management fee：Charge fees from owners based on their share of ownership, which are used for daily expenses and reserve funds.
- Management Reserve: Reserve funds for future major repairs or emergencies (such as typhoon damage) to avoid temporary cost sharing.
4. Execution of Deed of Mutual Covenant
- Supervise owners to comply with the terms of the building deed, such as prohibiting illegal alterations, dealing with noise or hygiene issues.
- Issue warnings or take legal action for violations to maintain community order.
5. Legal representation and decision making
- Represent all property owners in signing contracts with third parties (such as property management companies, contractors), or filing lawsuits regarding disputes.
- For major matters (such as changing the property management company or large-scale projects), an owners’ meeting is held and collective decisions are made through voting.
6. Enhance the voice of owners
- Concentrate the opinions of property owners to avoid developers or property management companies unilaterally dominating management affairs.
- Serve as a unified communication window when communicating with government departments (such as applying for maintenance funding).
7. Legal basis and rights
- According to the Building Management Ordinance, a corporation has legal person status and can independently sign documents, open bank accounts, and even sue or be sued in the name of the corporation.
In Hong Kong, an Owners' Corporation (OC) is a legal organization established under the Building Management Ordinance. It is mainly responsible for managing the common affairs of a strata building (such as maintenance, security, cleaning, etc.). The term "triad" refers to organized criminal groups involved in illegal activities. The two may seem unrelated, but in some cases, triads may attempt to infiltrate or manipulate corporations for their own gain. The following is relevant background and possible association analysis:
8. Operation of Owners Corporation and Potential Vulnerabilities
- The corporation is jointly established by the owners, and the members of the management committee (MC) are elected by the owners and are responsible for making decisions on building affairs (such as bidding projects, managing finances, etc.).
- Potential risks: If the members of the management committee are bribed or threatened, or if gang members infiltrate the management committee, they may be manipulated in the following ways:
- Project bidding rigging: The mafia colluded with contractors to contract maintenance works at high prices and collect kickbacks.
- Misappropriation of management fees: Illegal transfer of corporate funds.
- Manipulating elections: Using intimidation to influence the owners’ vote and ensure that “their own people” are elected to the management committee.
8. Triads get involved in corporations
There has long been a phenomenon of bid rigging in the renovation projects of old housing estates in Hong Kong, with gangs or unscrupulous businessmen controlling corporate bodies through threats and bribery in order to profit from sky-high-priced projects. In this case, the OC approved the project without transparent bidding simply on the grounds that "the concrete on the external wall was peeling and needed urgent repairs", which reflects the loopholes in the system (such as the insufficient supervision of the power of the OC by the Building Management Ordinance).
- There have been many cases in Hong Kong where triads have intervened in corporate bodies, for example:
- In 2018, the police uncovered a triad group that was suspected of manipulating multiple housing estate corporations and defrauding more than 10 million Hong Kong dollars in project funds by intimidating owners and forging documents.
- 2024 Lei Cheng Uk Village Corporation Committee Member Beheaded Case
- 17 people with triad backgrounds arrested for intimidation in the 2025 Tseung Kwan O King Lam Estate Corporation Election, including the candidate and the elected
9. Government and legal responses
- Legal provisions: The Building Management Ordinance requires corporations to be financially transparent and to investigate illegal activities. If triad involvement is found, prosecution can be invoked under the Societies Ordinance or the Crimes Ordinance.
- Enforcement Action：The Hong Kong police (such as the Organized Crime and Triad Bureau of the Organized Crime and Triad Bureau) will launch investigations into triad groups infiltrating legal organizations.
- Owner self-insurance:
- Be vigilant, attend corporate meetings and monitor financial reports.
- If you discover any suspicious project quotes or threatening behavior, report it to the police immediately.
- Apply to remove the offending management committee member through the Home Affairs Department or legal channels.
8. Home Affairs DepartmentNotes to Owners Corporations
introduction
- Managing private buildings is the responsibility of the owners. The Government's policy on building management has always been to encourage and assist owners to set up appropriate residents' organisations, such as Owners' Corporations (OCs), so that they can manage their buildings effectively.
- The Building Management Ordinance (Cap. 344) (hereinafter referred to as the "Ordinance") aims to provide a legal framework for the establishment and operation of corporations, so that owners of private buildings can set up corporations to better manage their properties.
Purpose of establishing an Owners Corporation
The Ordinance also clearly stipulates the duties and powers of the corporation. The OC has a legal duty to properly manage and maintain the common parts of the building and must take all measures that are reasonably necessary to carry out the management responsibilities of the common parts of the building as specified in the deed of mutual covenant. As for power, the corporation may decide whether to employ salaried staff, property management companies or other professional institutions or personnel to assist or represent the corporation in performing the duties and powers it has under the Ordinance or the deed of mutual covenant. In performing its duties and exercising its powers under section 18 of the Ordinance, the corporation shall be guided by the Code of Practice issued by the Secretary for Home Affairs and Youth Affairs in accordance with section 44(1) of the Ordinance.
Hong Kong has a large population and limited land area. Most citizens live in private multi-storey buildings or private housing estates consisting of multiple buildings. These buildings and housing estates consist of multiple units, ranging from hundreds to thousands. Unit owners are jointly responsible for the management and maintenance of the building or housing estate in which they live. If any accident is caused by poor management of the building or housing estate or lack of maintenance of its common parts, the owners concerned shall bear joint and several legal liability.
Managing and maintaining a building is not a simple matter. It involves a wide range of tasks, including cleaning common areas, handling garbage, security, as well as non-routine work such as hiring a property management company and maintaining the building. If there is no corporation established in the building, all management and maintenance matters of the building may have to be decided jointly by all owners, depending on the provisions of the deed of mutual covenant of the building. For buildings or housing estates consisting of hundreds or even thousands of units, this is not only time-consuming and unwieldy, but also unlikely to be feasible.
To properly manage buildings, provide owners with a comfortable living environment and protect their assets from being affected by poor building management and maintenance, establishing a corporation is not the only way, but it is the most feasible method. A corporation is an independent legal entity established under the Ordinance. It legally manages the common parts of a building on behalf of all owners, exercises and performs relevant rights, powers, privileges and duties, and has the power to appoint and dismiss property management companies and supervise their work.
The Ordinance provides that a corporation meeting may pass resolutions concerning the control, management and administration of the common parts of a building, as well as the renovation, improvement or decoration of such common parts, and such resolutions shall be binding on the management committee (MC) and all owners.
Common Problems and Challenges
- Establishment threshold：A resolution must be passed by the owners' meeting and registered with the Land Registry.
- Low owner involvement: Some owners may not actively participate in meetings or votes, affecting decision-making efficiency.
- Professional knowledge required: Major repairs or legal matters may require the use of professional consultants (e.g., engineers, lawyers).
- Mafia Invasion : Some old building corporations are easily controlled by a small number of people (including gangs) due to low participation of owners.
