*

Participation

in an owners

corporation's businces

Question No 11

Written reply by the Hon.PH. Liao, CBE, JP Secretary for District Administration to aj question raised by the Hon. POON Chi-fai in

Legislative Council on 3 February 1988

11. MR. POON CHI-FAI asked:

QUESTION :

In view of a recent incident in which individual members of an owners' corporation were involved in legal proceedings as a result of their participation in the co- Corporation's business, will Government inform

this Council :

(a)

(b)

(c)

what are the legal responsibilities of an individual member when he participates in the business of an owners' corporation or a mutual aid committee or their respective sub- committees;

has the Government provided any briefings on legal matters or legal advice for the individuals mentioned in (a) above; and

what steps the Government will take to prevent civic-minded people from being deterred from taking part in voluntary community work because of possible involvement in legal proceedings?

SECRETARY FOR DISTRICT ADMINISTRATION:

Sir,

l.c

The Management Committee of an Owners' Corporation l.c. (OC) acts as its executive arm. The Committee has to abide

.. by resolutions of the Corporation passed at General Meetings. l. The members of the Management Committee have to maintain l.c

l.c.

proper books and other records of the Corporation, and could

be held liable if they failed to do so, but otherwise so long as the members of the Management Committee act in good faith

and exercise reasonable diligence in the exercise of the

powers conferred on them by the Multi-Storey Buildings (Owners

Incorporation) Ordinance, they should not be held personally

l.c. liable for the acts of the forporation.

2./....

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