The Government today welcomed the Legislative Council’s passage of an amendment bill to improve transparency and accountability in the operation of owners’ corporations (OCs).

The Building Management (Amendment) Bill 2023, due to be published in the Gazette on July 12 this year and to come into operation on July 13 next year, will also enhance deterrence against non-compliance with the Building Management Ordinance.

The bill seeks to impose certain requirements in relation to the procurement of supplies, goods or services required for large-scale building maintenance, as well as other high-value procurement activities required for building management.

Procurement for any maintenance project will be considered large-scale if the average project cost per building flat exceeds $30,000. A resolution for large-scale maintenance procurement can only be passed if at least 5% of the owners or 100 owners, whichever is the lesser, have voted in person.

The bill will provide a mechanism under which natural persons authorised by corporate flat owners may act for the latter at general meetings of OCs and similar events.

It will also impose or adjust certain requirements in relation to OCs’ financial statements and other accounting documents, and in relation to procedures for meetings concerning building management.

Additionally, the bill seeks to criminalise failure to keep certain documents concerning building management, and to make related and miscellaneous amendments.

The Government said the proposals consolidate views gathered over the years from stakeholders and via public consultation. It added that it will continue to follow up on other building management issues in consultation with stakeholders.