The government proposes removing the cap on the number of proxy votes an authorised person may hold, while requiring property management companies to check at least 20% of proxy instruments under amendments to the Building Management Ordinance.
At a discussion of the bill by the Legislative Council’s Panel on Home Affairs, Culture and Sports on 9 November, Secretary for Home and Youth Affairs Alice Mak said a sample check that uncovered irregularities would trigger a check of every proxy instrument. A legislator asked whether sampling could deal with large-scale, systematic fraud.
For major-repair procurement, the proposed personal-voting thresholds would rise with the average project cost per unit. Above HK$30,000, the requirement would be 5% of owners or 100 owners; at HK$80,000, 8% or 150; and at HK$120,000, 10% or 200. The lower of the percentage-based figure and the stated headcount would apply. The owners’ meeting quorum would remain 10% of owners.
The government also proposes removing owners’ ability to set voting instructions in advance on a proxy instrument. Mak said a problem with a bidder might emerge shortly before a meeting—for example, two hours beforehand—when an instruction had already been fixed and could not be changed.
Mak said the government would provide guidance for owners’ corporation committees and property management companies on carrying out the checks. Careless checking by a property management company would breach industry conduct requirements and could affect its licensing.