XN000022-1992-07-15 — Page 9

WEDNESDAY, JULY 15, 1992

FORMATION OF OWNERS' CORPORATIONS TO BE SPEEDED UP

THE

GOVERNMENT ACCEPTS THE ARGUMENT CONTAINED IN MANY SUBMISSIONS THAT FLAT OWNERS SHOULD HAVE THE RIGHT ΤΟ INCORPORATE THEMSELVES, THE SECRETARY FOR HOME AFFAIRS, MR MICHAEL SUEN, TOLD THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON.

MOVING THE SECOND READING OF THE MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) (AMENDMENT} BILL 1992, MR SUEN SAID THE BILL AIMED PRIMARILY TO FURTHER FACILITATE THE FORMATION OF OWNERS' CORPORATIONS AND ΤΟ REPEAL THOSE PROVISIONS IN THE EXISTING DEEDS OF MUTUAL COVENANT WHICH WERE CONSIDERED TO BE UNFAIR TO FLAT OWNERS.

IT

WAS DESIGNED TO GIVE EFFECT TO PROPOSALS FORMULATED ON THE BASIS OF VIEWS EXPRESSED DURING PUBLIC CONSULTATION ON AN EARLIER VERSION OF THE AMENDMENT BILL WHICH WAS PUBLISHED AS A WHITE BILL AT THE END OF MAY LAST YEAR, HE SAID.

PROVISIONS OF THE

MR SUEN SAID ONE OF THE MOST CONTENTIOUS EXISTING ORDINANCE WAS SECTION 2A WHICH PROVIDED THAT THE ORDINANCE DID NOT APPLY TO A BUILDING IN RESPECT OF WHICH A PERSON HAD UNDERTAKEN

MANAGE OR BE RESPONSIBLE FOR ITS MANAGEMENT.

TO. OR AGREED WITH, THE GOVERNMENT TO

CLAUSE 4 OF THE BILL, THEREFORE, REPEALS SECTION 2A OF THE ORDINANCE ACCORDINGLY, MR SUEN SAID.

"AND IN ORDER TO PUT THE MATTER BEYOND DOUBT, CLAUSE 27 OF THE BILL PROVIDES, INTER ALIA, THAT ANY ARRANGEMENTS WHEREBY FLAT OWNERS ARE PREVENTED FROM BEING REGISTERED AS AN OWNERS' CORPORATION SHALL BE VOID AND OF NO EFFECT," HE ADDED.

IN ORDER TO FACILITATE THE FORMATION OF OWNERS + LORPORATIONS, MR SUEN SAID CLAUSE 5 ENABLED THE SECRETARY FOR HOME AFFAIRS TO APPROVE APPLICATIONS FOR INCORPORATION BY THE OWNERS OF NOT LESS THAN 30 PER CENT OF THE SHARES IN THE BUILDING, INSTEAD OF THE 50 PER CENT AS AT PRESENT PROVIDED.

"THIS CHANGE WILL BE PARTICULARLY HELPFUL IN BUILDINGS WITH A LARGE NUMBER OF ABSENTEE LANDLORDS WHO DO NOT NORMALLY TAKE ANY INTEREST IN THE MANAGEMENT OF THEIR BUILDINGS."

AS TO THE PROBLEM OF UNFAIR DEEDS OF MUTUAL. COVENANT, MR SUEN SAID SUCH DEEDS FREQUENTLY PROVIDED FOR PERPETUAL MANAGEMENT BY THE DEVELOPER

DEVELOPER.

HIMSELF OR BY A MANAGEMENT COMPANY ASSOCIATED WITH

THE

IN SUCH CASES, THERE IS LITTLE THE FLAT OWNERS CAN DO TO THEMSELVES OF THE MANAGER, HE SAID.

RID

BE

HOWEVER, MR SUEN POINTED OUT THAT A NEW SEVENTH SCHEDULE PROVIDED UNDER THE AMENDMENT BILL, SETTING OUT THE TERMS THAT WERE

IMPLIEDLY INCORPORATED INTO EVERY DEED OF MUTUAL COVENANT.

"SUCH TERMS WILL PREVAIL OVER CORRESPONDING PROVISIONS EXISTING COVENANTS WHICH ARE INCONSISTENT WITH THEM." HE SAID.

/MR SUEN

WAS

TO

IN