Hong Kong authorities have proposed mandatory briefings for building renovation projects to increase homeowner participation and curb bid-rigging, in response to a fatal fire in Tai Po. The amendment to the Building Management Ordinance seeks to close legal gaps. Officials highlighted information asymmetry as a key cause of recent disputes.
Hong Kong's Secretary for Home and Youth Affairs, Alice Mak Mei-kuen, stated on a radio programme that authorities plan to amend the Building Management Ordinance to require management companies to hold briefing sessions before major repair or improvement works, allowing owners to gain detailed information.
"From our experience of handling disputes in recent years, we found that many conflicts arose from an information asymmetry," Mak said, as reported by the South China Morning Post. "It would be helpful if homeowners did not rely solely on the general meeting to ask questions and make decisions, which would be too rushed … the briefing could provide more information for owners to make an informed decision and allow the management company or the management committee to address their questions before the general meeting."
"If they fail to do so, owners would be more motivated to attend the meeting on their own to vote," she added. The measure targets issues like proxy forgery and bid-rigging, drawing from cases involving companies such as Hop On Management Company.
The proposal follows a deadly fire at Wang Fuk Court in Tai Po on November 26, which killed 168 people and displaced nearly 5,000 residents. A public consultation is underway to enhance fire safety facilities and other protections.
