Best Practices on Building Management (March 2025)
BEST PRACTICES |
Key Action Party(ies) |
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1.0 |
FORMATION OF AN OC |
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1.1 |
The number of members of a management committee (MC) of an OC for a building with more than 500 flats should not be fewer than 11. | Owners |
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1.2 |
In the course of the appointment of the MC participants, a candidate running to be a participant of the MC should declare his / her connections (if any) with other candidates and the incumbent MC participants, and his / her relationship with other OCs (e.g. holding the position of an MC participant in the OC of other courts) (if any), either in nomination form or at the owners' meeting, annual general meeting or general meeting before voting (a sample form for "Declaration of interests / connections of candidates standing for election as a participant of an MC" is at Annex A)1. The declaration should be recorded in the minutes of the meeting. | Candidates Running For the MC Participants |
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2.0 |
PROCUREMENT PROCESS | ||||||||||
2.1 |
Preparation of Invitation to Tender | ||||||||||
2.1.1 |
If the procurement is not a type 1 high-value procurement, type 2 high-value procurement or large-scale maintenance procurement (hereafter referred to as "major procurement"), but the procurement value exceeds $10,000 but does not exceed $200,000, it is also recommended that tenders should be issued to not less than three potential suppliers. | OCs / OComms / Managers |
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| 2.1.2 | To enhance transparency and fairness, the "Smart Tender" Building Rehabilitation Facilitating Services2 (the Scheme) administered by the Urban Renewal Authority (URA) should be adopted for large-scale maintenance procurement, or corruption prevention measures of the same nature of "Smart Tender" should be incorporated into the process (e.g. selection of works consultants or contractors from the service providers3 registered under URA's Building Rehabilitation Company Registration Scheme, use of an electronic tendering platform, and appointment of independent persons to witness the opening of tenders, etc.) | ||||||||||
| 2.1.3 | Integrity and anti-bid rigging clauses should be included in the tendering documents. Relevant parties may refer to the sample of integrity and anti-bid rigging clauses in the "Building Management Toolkit"4 issued by Independent Commission Against Corruption (ICAC). | ||||||||||
2.2 |
Consideration and Decision on Acceptance of Tenders | ||||||||||
2.2.1 |
For resolutions to be put to vote concerning "major procurement" and with options "for" and "against" only, owners may, having regard to the circumstances of each resolution to be put to vote (e.g. whether the option under each resolution would be dependent on the result of some other resolutions), indicate their voting instructions to the proxies (if appointed). A template for owners to prescribe their voting instructions in such circumstances is in Part B at Annex B. Please see paragraphs 3.2.8 and 3.2.9 below for further information. | Owners / Proxies |
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| 2.2.2 | To ensure the integrity of suppliers, ethical commitment clauses should be included in the contracts, with reference to the sample provided by the ICAC5. |
OCs / OComms / Managers |
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| 3.0 |
GENERAL MEETING AND USE OF PROXY INSTRUMENTS |
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3.1 |
Convening of a General Meeting and Notice of Meeting | ||||||||||
| 3.1.1 |
Apart from giving notice of meeting as required under the BMO, the notice of meeting should also be displayed in a prominent place in the building as soon as practicable, say, at least 21 days before the meeting of the OC. |
MC Secretary | |||||||||
| 3.1.2 |
The notice of meeting should state clearly – (a)
the specified statutory time within which proxy instruments should be lodged;
(b)
the method and location for lodging the proxy instruments (e.g. the exact location of proxy instrument collection boxes); and
(c)
the timing and location for the opening of proxy instrument boxes if such boxes are used, so that the owners may witness the opening and counting process.
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MC Secretary | |||||||||
| 3.1.3 |
In making a request by not less than 5% of the owners for convening a general meeting pursuant to paragraph 1(2) of Schedule 3 to the BMO, the owners concerned should – (a)
provide a list clearly setting out the names of the owners who made such request, the flats they own and their signatures;
(b)
check that the minimum requirement of "5% of the owners" is met before making the request to the MC Chairman; and
(c)
appoint a person as their representative / contact point in order to facilitate better communication with the MC Chairman.
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Owners | |||||||||
| 3.1.4 |
For a general meeting of the OC requested by not less than 5% of the owners, the MC Chairman should – (a)
liaise with the owners with a view to working out suitable measures to resolve the issue if a requested item has been repeatedly discussed at previous owners' meetings of the OC but not less than 5% of the owners still request to convene a general meeting to discuss such item;
(b)
verify whether the request for meeting is made by not less than 5% of the owners; and
(c)
inform other MC Members as soon as practicable upon receipt of the request for meeting to facilitate better coordination and communication within the MC.
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MC Chairman | |||||||||
| 3.1.5 |
For a general meeting of the OC requested by not less than 5% of the owners, discussion item(s) requested by the owners should be handled first at the meeting unless the resolution(s) of the requested discussion item(s) hinge on the result of another resolution / item of business which has not been included in the owners' request. The MC Chairman should seek clarifications with the owners concerned on their requests where necessary. |
MC Chairman | |||||||||
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3.2 |
Proxy Instruments6 | ||||||||||
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Form of Proxy Instruments |
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| 3.2.1 |
The MC Secretary should – (a)
print the date of the meeting of the OC and a unique serial number on each of the proxy instruments to ensure that the owners are aware of the meeting at which the appointed proxies will exercise their voting rights on their behalf and to facilitate checking;
(b)
attach to each of the proxy instruments the "Points to Note for Owners when Appointing Proxies and Statement of the Purpose in respect of Collection of Personal Data in the Proxy Instrument" (a sample is at Annex C) to remind owners the importance of their rights to vote and to allow owners and proxies to understand the purpose of collection of their personal data, classes of transferees, and the rights and means to request access to and correction of their personal data;
(c)
attach to the notice of meeting (i) a blank proxy instrument; and (ii) "Form of Statement of Appointment of Proxy and Voting Instructions for Owners" (a sample is at Annex B) for proxies to make declarations and for owners to prescribe the voting instructions (solely applicable to resolutions to be put to vote concerning "major procurement" and with options "for" and "against" only) (see paragraph 3.2.7 and 3.2.8 below); or provide the instruments and forms in (i) and (ii) at the management
office;
(d)
distribute the proxy instruments with the "name of proxy" left blank for completion by the owners; and
(e)
prepare a register for owners who do not intend to appoint proxies to register and make it available for inspection by owners.
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MC Secretary |
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Filling in of Proxy Instruments |
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| 3.2.2 |
Owners should give careful consideration to the appointment of proxies and only appoint persons whom they trust to be their proxies with a view to ensuring that the proxies would act in their best interests. |
Owners |
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| 3.2.3 |
Owners should only appoint persons aged 18 or above as proxies. |
Owners |
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| 3.2.4 |
Owners should fill in all the required information, particularly the "name of proxy" in the proxy instruments when appointing proxies. |
Owners |
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| 3.2.5 |
Owners should not pass their signed proxy instruments to any person without filling in the "name of proxy". |
Owners |
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| 3.2.6 |
If an owner receives a proxy instrument with the "name of proxy" printed on it but the owner intends to appoint another person to be his / her proxy, he / she can cross out the printed name and put down the name of his / her own proxy, with his / her signature beside the amendment. Owners should also report the situation to the MC or the manager (if applicable) for follow-up actions and refer suspicious cases to the law enforcement departments. |
Owners |
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| 3.2.7 |
When appointing a proxy, besides filling in the proxy instrument, the owner should show his / her proxy instrument to the proxy and pass the form of "Declaration(s) by Proxy and Owner's Voting Instructions" to the proxy concerned to make a declaration at Part A of the form that the proxy instrument is honestly acquired from the owner. The owner and the proxy should also read carefully and sign the "Statement of Purposes in Respect of Collection of Personal Data". |
Owners, Proxies |
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| 3.2.8 |
For resolutions to be put to vote concerning "major procurement" and with options "for" and "against" only, subject to paragraph 2.2.1 above, if an owner would like to set out his / her voting instructions, he / she should complete Part B of the form of "Declaration(s) by Proxy and Owner's Voting Instructions". The proxy should make declaration at Part C of the form that he / she will follow the voting instructions (if any) of the owner. The owner and the proxy should also read carefully and sign the "Statement of Purposes in Respect of Collection of Personal Data" in the form. |
Owners, Proxies |
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| 3.2.9 | The completed and signed form of "Declaration(s) by Proxy and Owner's Voting Instructions" ("the completed form") should be lodged in original with the MC Secretary together with the proxy instrument. For the avoidance of doubt, the proxy instrument should be in the form set out in Form 2 in Schedule 1A to the BMO, and the completed form does not form any part of the proxy. | Owners | |||||||||
| 3.2.10 |
Upon receipt of the proxy instrument and the completed and signed form (if any), the MC Secretary (or the manager assisting him / her) should – (a)
affix the chop of the OC (or that of the manager) on the proxy instrument and the completed and signed form that has been completed and signed. If the instrument and the form is submitted by an owner in person, the MC Secretary (or the manager) should affix the chop in the presence of the owner;
(b)
make a copy of the proxy instruments and the completed and signed form showing the chop(s) affixed; and
(c)
keep the proxy instrument, the completed and signed form and the copies mentioned in (b) above in a safe place.
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MC Secretary, Manager |
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| 3.2.11 |
In order to ensure that the voting instructions prescribed by the owner are carried out, owners should give careful consideration to the necessity of appointing an alternative proxy, having regard to the circumstances and needs of each case. |
Owners |
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| 3.2.12 |
Owners should, as far as possible, sign the proxy instruments using the signature as appeared on their deeds of assignment. |
Owners |
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| 3.2.13 |
Owners who are body corporates should follow their constitution in authorising persons to sign on their proxy instruments. |
Owners |
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| 3.2.14 |
Owners should set out their contact details (e.g. telephone numbers, e-mail addresses, etc.) on their proxy instruments so that the MC chairman can contact the owners to check when the validity of the proxy instruments is in doubt. |
Owners |
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| 3.2.15 |
The maximum number of proxy instruments a proxy (including one appointed by an owner who is a body corporate) should hold for the purpose of a particular meeting is – (a)
for a building with not more than 20 flats7 – one
(b)
for a building with more than 20 flats – not more than 5% of the owners (rounded to the nearest integer) or 50 (whichever is the lesser), and the minimum number should be one.
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Proxies |
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Timing of Lodging and Collection of Proxy Instruments |
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| 3.2.16 |
The timing and location for collecting the proxy instruments and the opening and counting of the proxy instrument collection boxes (if any) should be convenient to all owners. |
MC Secretary |
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| 3.2.17 |
If the manager (if any) assists the MC Secretary in collecting the proxy instruments, the MC Secretary should give clear instructions to the manager on the submission deadline and the collection method. |
MC Secretary |
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| 3.2.18 |
Owners are advised to lodge their proxy instruments with the MC Secretary as early as practicable, say, at least 144 hours (i.e. at least 6 days) before the meeting, to leave sufficient time for verification by the MC Chairman. |
Owners |
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| 3.2.19 |
Owner should personally lodge the proxy instrument together with the completed form with the MC Secretary direct or deposit them in the ways as instructed by the MC Secretary, and should avoid giving them to third parties. The owner should make and retain a copy of the instrument and the completed form before lodging them with the MC Secretary or depositing them. |
Owners |
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| 3.2.20 |
The proxy instrument lodged by each owner should be the original copy. |
Owners |
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| 3.2.21 |
The proxy instrument collection boxes (if any) should be double-locked and placed in a prominent place of the building. |
MC Secretary |
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| 3.2.22 |
The acknowledgement of receipt of the proxy instrument should be accompanied by a copy each of – (a)
the proxy instrument; and
(b)
the completed form
showing the chop(s) affixed, and should be issued to the owner concerned by leaving it at the flat of the owner who made the proxy instrument, depositing it in the letter box for the flat, or producing it to the owner personally before the time for the holding of the meeting. For the avoidance of doubt, the issue of the acknowledgement receipt does not mean that the proxy instrument has been verified. |
MC Secretary |
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| 3.2.23 |
Owners are advised to check whether they have received the acknowledgment receipts of the proxy instruments before the time scheduled for the holding of the meeting to ensure that the MC Secretary has received the proxy instruments. If in doubt, owners should check with the MC Secretary. |
Owners, MC Secretary |
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Determination of the Validity of Proxy Instruments |
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| 3.2.24 |
The MC Chairman should handle the proxy instruments in a fair and transparent manner and in accordance with the provisions of the BMO. |
MC Chairman |
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| 3.2.25 |
In determining the validity of a proxy instrument – (a)
if the proxy instrument is in the form set out in Form 2 of Schedule 1A to the BMO, the MC Chairman should not reject the proxy instrument for the sole reason that it is not the printed proxy instrument provided by the OC;
(b)
the mere act of providing additional information such as Hong Kong Identity Card number or time of signing the proxy will not render the proxy instrument invalid; and
(c)
the MC Chairman should not reject the proxy instrument for the sole reason that the owner has crossed out the printed "name of proxy" and has put down the name of his / her own proxy with his / her signature .
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MC Chairman |
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| 3.2.26 |
If the MC Chairman has determined that a proxy instrument is invalid before the meeting, he should contact the owner concerned to explain the invalidity of the proxy instrument as early as practicable so that the owner may consider whether a fresh proxy instrument should be made before the deadline8 or to attend the meeting in person. |
MC Chairman |
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| 3.2.27 |
If there are two or more proxy instruments from the same owner with different dates for the purpose of a particular meeting of the OC, the proxy instrument with the most recent date is normally intended to supersede those with earlier dates. If no date is marked on the proxy instruments or the same date is marked but with different proxies appointed, the MC Chairman should contact the owner concerned to confirm with him / her which proxy instrument is intended to be used by the owner. If the MC Chairman has taken reasonable steps to ascertain their validity but failed, all such proxy instruments should be considered invalid. |
MC Chairman |
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| 3.2.28 |
The MC Secretary should assist the MC Chairman in contacting the owners concerned for verification of proxy instruments as soon as practicable, in any event no later than the time for the holding of the meeting, if there is any query or uncertainty arising from the proxy instruments. Owners should also cooperate with the MC Chairman as far as practicable to ensure that their proxies are properly appointed. |
MC Secretary, Owners |
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| 3.2.29 |
After verification by the MC Chairman, the MC Secretary / manager (where applicable) should affix the chop of the MC or manager on the proxy instruments to illustrate that such instruments have been verified. |
MC Secretary, Manager |
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Display of Information Concerning Proxy Instruments |
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| 3.2.30 |
The MC Secretary should give sufficient time for owners to check against the list showing flats with proxy instruments lodged ("list of proxy information"). The list of proxy instruments should be displayed in a prominent place of the building at least 72 hours before the time for the holding of the meeting, be updated after the close of the lodging time provided that the proxy instruments concerned are lodged at least 48 hours before the time for the holding of the meeting, and remain to be displayed until seven days after the meeting. |
MC Secretary |
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| 3.2.31 |
The list of proxy instrument should be displayed in a prominent place of the building in a clear and easily readable format with appropriate font size. Where feasible, the MC Secretary should provide additional means of dissemination of the list of proxy instruments (e.g. posting on the website of the OC) to facilitate checking by the owners. |
MC Secretary |
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| 3.2.32 |
The list of proxy instruments should also include – (a)
the total number of proxy instruments received;
(b)
a mark against the flat of the owner concerned who has submitted proxy instrument(s) but such instrument(s) has / have been determined as invalid by the MC Chairman; and
(c)
the total number of invalidated proxy instruments.
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MC Secretary |
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| 3.2.33 | The reason(s) for invalidation should be marked on each invalid proxy instrument and should be announced before the OC meeting, say, by displaying in the list of proxy instruments. For a proxy instrument which has been determined by the MC Chairman as invalid, the owner concerned, the proxy concerned, the MC Chairman, the MC Secretary (and the manager providing assistance), the Authority (i.e. the Secretary for Home and Youth Affairs) and an authorised officer under the BMO should be allowed to inspect the proxy instrument. |
MC Secretary | |||||||||
| 3.2.34 |
The MC Secretary should remind the owners to check the list of proxy instruments with a view to finding out if there are any unauthorised appointments of proxies. |
MC Secretary | |||||||||
| 3.2.35 |
The MC Chairman should confirm the undivided shares under each of the verified proxy instruments for the purpose of vote counting, unless otherwise specified in the DMC. |
MC Chairman | |||||||||
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3.3 |
Conduct of a General Meeting |
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| 3.3.1 |
The MC Chairman should – (a)
conduct the general meeting in an orderly manner;
(b)
explain clearly to the owners the background and facts of the issues to be discussed;
(c)
allow owners to have equal opportunity to speak at the general meeting; and
(d)
encourage owners to express their views so as to ensure that the items are thoroughly discussed before the items are put to vote.
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MC Chairman |
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| 3.3.2 |
The MC Secretary should – (a)
confirm that the quorum of the meeting is formed before the commencement of the general meeting;
(b)
keep track of the number of owners coming in or leaving the venue of the general meeting to ensure that the quorum is formed before putting a resolution to vote;
(c)
advise the MC Chairman to adjourn the general meeting if the quorum is not formed;
(d)
tear off the voting instructions (if any) given by the owner in Part B of the form of "Declaration by Proxy and Owner's Voting Instructions" and give it to the proxy of the relevant owner. The proxy should use that part of the form as a ballot paper to vote on the resolution concerned; and
(e)
in connection with (d) above, if the proxy asks for an extra ballot paper despite the owner has given voting instructions to the proxy in advance, enquire the proxy about the reasons behind and, contact and notify the owner at once as far as practicable. If the owner cannot be contacted immediately, another attempt should be made after the meeting.
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MC Secretary, Proxies |
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| 3.3.3 |
The MC Secretary should avoid giving an extra ballot paper to a proxy in the case where voting instructions were given by the owner in respect of a "major procurement". |
MC Secretary |
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| 3.3.4 | Relevant parties should make reference to the "Corruption Prevention Guide for Property Management Companies" issued by ICAC for common corruption risks, corruption prevention alerts and preventive measures in the conduct of owners' meetings (including the handling of proxy instruments). |
Owners, OC, MC, managers |
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3.4 |
Actions after the Conclusion of a General Meeting |
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| 3.4.1 |
The MC should keep all the documents related to the appointment of proxies, i.e. – (a)
the lodged proxy instruments;
(b)
the copies of the completed forms (i.e. forms of "Declaration(s) by Proxy and Owner's Voting Instructions") affixed with chops;
(c)
voting instructions that have been used as ballot papers (see para. 3.3.2(d)) (if any); and
(d)
the list of proxy instruments displayed for at least three years.
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MC |
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| 3.4.2 |
The following person should be allowed to inspect the documents related to the appointment of proxies -
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MC, manager, owners, proxies | |||||||||
1 For the definition of "connection", please refer to section 2(5) of the BMO.
2 "Smart Tender" Building Rehabilitation Facilitating Services is available at the following link:
https://www.brplatform.org.hk/en/subsidy-and-assistance/smart-tender
3 Building Rehabilitation Company Database Search Engine is available at the following link:
https://brcrs.brplatform.org.hk/en/search-terms
4 "Building Management Toolkit" issued by the ICAC can be found at the following link:
https://bm.icac.hk/Building_Maintenance_Toolkit.html?lang=en
5 The sample is set out in Appendix 10 of "Corruption Prevention Guide for PMCs" issued by the ICAC and is available at https://cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=2816
6 See Form 2 in Schedule 1A to the BMO for the proxy instrument. The best practices under Part 2.2 should also be applicable to meeting of the owners for the appointment of management committee and Form 1 in Schedule 1A to the BMO, with necessary and suitable adaptations to be made.
7 Not including any garage, carpark or carport
8 At least 144 hours (i.e. at least 6 days) as a best practice (see paragraph 2.2.16), and at least 48 hours before the time for the holding of the meeting (see paragraph 4(3) of Schedule 3 to the BMO).
9 The "Corruption Prevention Guide for PMCs" issued by the ICAC is available at https://cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=2816