PROVISIONAL URBAN COUNCIL

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Ownership Scheme. On top of these, the Government amended the 'Building Management Ordinance' (BMO) in March 1998, thus enhancing the status of OCs. The amendment provides that the formation of an OC can only be vetoed by owners of not less than 30% instead of the former 10% of the shares in the building, so that the resistance from the minority of owners in forming an OC is greatly weakened. All these factors are conducive to the trend of forming an OC to manage a building. Therefore, building management, especially the owners and OCs, will play a vital role in contributing to the prosperity and stability of Hong Kong.

In recent years, while encouraging owners to form OCs, the Government has also raised the safety standard for the building itself and its common facilities. Many ordinances concerning building safety, e.g., the Fire Services Ordinance, Slope Safety Ordinance, Electrical Installations Safety Ordinance, Building Management Ordinance and Occupiers Liability Ordinance have been constantly introduced, amended and strictly enforced. All these ordinances are designed to improve and protect the safety of the buildings and their occupiers. As long as they are strictly complied with by the OCs/owners, a good and quality building management can be expected. The owners can thus enjoy a high quality living environment and their properties and rights as owners can be protected.

However, in real life, many owners take for granted that they can automatically enjoy all the rights once an OC is set up while neglecting to fulfill the obligations of OCs/owners. Many owners/OCs are being claimed for legal liabilities due to the OC's negligence in management,

The owners should realize that under the law, once an OC is formed, it owes the 'Common Duty of Care' to persons who have legitimate right to enter the premises. In short, the liability of an occupier refers to the liability an occupier owes persons or articles at the premises in exercise of a right conferred by law in respect of injuries or damages caused by dangers due to the state of the premises or to things done or omitted to be done. Upon the formation of an OC, it is a 'corporate body' by law which takes collective responsibility in respect of collective rights and duties. Any proceedings in respect of any of the common parts of the building may be brought and pursued by or against the corporation. In other words, when the owners of a building have been registered as a corporation under the Ordinance, apart from the rights, powers, privileges and duties, the OC is liable to the liabilities of the owners in relation to the common parts of the building.

That is to say, according to the "Occupiers Liability Ordinance", owners/OCs as the occupiers, should be held liable to the safety of the property under their control, as well as to ensure the safety of all households and visitors who legally enter the premises. For instance, the owners or OCs fail to manage the common parts strictly in accordance with the provisions of the Fire Services Ordinance, but rather allow the fire escapes to be obstructed,

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Page 391 of 606

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