WEDNESDAY, JULY 15, 1992
SEVENTH
MR SUEN SAID PARAGRAPH 7 OF THE NEW
SCHEDULE WOULD PROVIDE A PROCEDURE WHEREBY THE FLAT OWNERS MIGHT TERMINATE THE APPOINTMENT OF A MANAGER EMPLOYED BY OR ASSOCIATED WITH THE DEVELOPER.
"BASICALLY, IT REQUIRES A RESOLUTION OF THE OWNERS OF NOT LESS
THAN 50 PER CENT OF THE UNDIVIDED SHARES.
"THE DEVELOPER MAY THEN APPOINT A REPLACEMENT MANAGER WITH THE CONSENT OF THE FLAT OWNERS.
"SHOULD THEY FAIL TO REACH ANY AGREEMENT, THE FLAT OWNERS WOULD HAVE THE POWER TO APPOINT THEIR OWN MANAGER, MR SUEN SAID.
BUT MR SUEN ACKNOWLEDGED THAT THE GOVERNMENT DID RECOGNISE THAT IN SOME EXCEPTIONAL CIRCUMSTANCES, CERTAIN RESIDENTIAL DEVELOPMENTS MIGHT BEST BE MANAGED BY THE DEVELOPER OR HIS APPOINTED MANAGING AGENT.
FOR THIS REASON, THE NEW SECTION 34E(4) IN CLAUSE 27 PROPOSES THAT THE SECRETARY FOR HOME AFFAIRS MAY EXCLUDE THE APPLICATION OF PARAGRAPH 7 OF THE SEVENTH SCHEDULE TO ANY SPECIFIED BUILDING IN ACCORDANCE WITH PUBLISHED GUIDELINES,
AS THE INCLUSION OF NEW PROVISIONS ON UNFAIR DEEDS OF MUTUAL COVENANT WIDENED THE SCOPE OF THE EXISTING ORDINANCE, MR SUEN SAID IT WAS CONSIDERED NECESSARY FOR THE SHORT TITLE OF THE ORDINANCE ΤΟ BE CHANGED FROM "MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) ORDINANCE" TO "BUILDING MANAGEMENT ORDINANCE".
DEBATE ON THE BILL WAS ADJOURNED.
BILL TO REFINE INSURANCE COMPANIES ORDINANCE INTRODUCED
A BILL THAT SOUGHT TO REFINE EXISTING PROVISIONS OF THE INSURANCE COMPANIES ORDINANCE WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY},
MR
MOVING THE SECOND READING OF THE INSURANCE COMPANIES (AMENDMENT) (NO. 31 BILL 1992, THE SECRETARY FOR MONETARY AFFAIRS, DAVID NENDICK, SAID THERE WERE TWO AREAS OF REFINEMENT.
FIRST,
TO DESIGNATE THE MANAGEMENT OF RETIREMENT SCHEMES AS A NEW CLASS OF LONG-TERM BUSINESS AND SECONDLY, TO FACILITATE THE REPORTING OF SUSPECTED FRAUD BY AUDITORS, ACCOUNTANTS AND ACTUARIES.
INSURERS UNDERTAKING LONG-TERM BUSINESS ARE REQUIRED UNDER THE INSURANCE COMPANIES ORDINANCE TO SET ASIDE A LONG-TERN FUND! ΤΟ MEET THE LIABILITIES ARISING FROM SUCH BUSINESS.
"THIS ENSURES THAT ADEQUATE PROTECTION IS GIVEN TO THE POLICY HOLDERS, MR NENDICK SAID.
/IT IS
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