Aegean Management Tasks

Main tasks for managing a 100-unit residential property in Hong Kong focus on the common parts (as defined in the Deed of Mutual Covenant (DMC) and Schedule 1 to the Building Management Ordinance (Cap. 344) (“BMO”)). These typically include:Core Operational Tasks

• Maintenance and repair of common parts and facilities (e.g., external walls, roofs, lobbies, corridors, staircases, lifts, water pumps, electrical systems, drainage, fire services installations, and structural elements). This includes regular inspections, preventive maintenance, and responding to defects or statutory orders (such as under the Mandatory Building Inspection Scheme or Mandatory Window Inspection Scheme).
• Cleaning and environmental hygiene — daily/weekly cleaning of common areas, refuse collection and disposal, pest control, and ensuring a clean and hygienic environment.
• Security and safety — provision of security personnel or systems (subject to the Security and Guarding Services Ordinance), access control, CCTV (if any), fire safety compliance, emergency preparedness, and crime prevention.
• Financial management — preparing annual budgets and revised budgets; collecting management fees and contributions from owners (based on shares or management shares in the DMC); maintaining proper books of account, bank accounts (interest-bearing, segregated trust/client accounts where required); preparing income/expenditure summaries and balance sheets; establishing and managing a special fund for non-recurrent expenditure (e.g., major repairs); and arranging audits when required (generally if annual income or expenditure exceeds HK$500,000).
• Insurance — procuring and maintaining third-party risks insurance for the common parts and the property of the corporation (mandatory under section 28 of the BMO), plus other relevant cover (e.g., employees’ compensation if staff are employed, property insurance).
• Procurement of supplies, goods and services — following statutory tendering and procurement rules under the BMO (especially for higher-value or large-scale items), Codes of Practice, and good practice for transparency and value for money. This covers cleaning, security, maintenance contracts, insurance, etc.
• Administration and governance — enforcing the DMC and house rules; handling owner communications and complaints; convening and conducting meetings (Management Committee and OC general meetings); keeping records; displaying required notices and documents; and complying with all applicable laws and Codes of Practice issued under the BMO.
• Staffing or contractor management (if not fully self-managed) — employing caretakers/cleaners or engaging contractors/service providers, and supervising their work.
• Compliance with government requirements — implementing any works ordered by public officers/bodies, fire safety, building safety, and environmental regulations.

For a 100-unit building these tasks are manageable but still require organised effort, proper record-keeping, and often professional support for technical or specialised work (e.g., lift maintenance, major structural repairs).Legal Requirements for Management by the Owners’ Corporation (OC)An OC is a body corporate formed under the BMO. Once properly formed and registered, it has the legal status to represent all owners in managing the common parts. Key points:

1. Formation and registration of the OC (prerequisite):
   • Owners convene a meeting under section 3 (or alternative routes under sections 3A, 4 or 40C) of the BMO to appoint a Management Committee (MC).
   • For a building of this size, the MC composition requirements under Schedule 2 apply (generally not fewer than 7 members for buildings with more than 50 but not more than 100 units, subject to exact rules).
   • The MC applies to the Land Registry within 28 days for registration of the owners as a corporation. Upon issuance of the certificate of registration, the OC is formed.
   • There is no legal obligation to form an OC, but it is strongly encouraged and provides clear legal capacity.
2. Once the OC is formed:
   • Under section 16 of the BMO, the rights, powers, privileges and duties of the owners in relation to the common parts are exercised and performed by the OC (to the exclusion of the individual owners for those purposes). Liabilities relating to the common parts are enforceable against the OC.
   • Section 18 of the BMO sets out the core duties: maintain the common parts (and property of the corporation) in a state of good and serviceable repair and clean condition; carry out works ordered by public authorities; and do all things reasonably necessary to enforce the DMC obligations for control, management and administration of the building.
   • The MC performs the day-to-day duties and exercises the powers of the OC on its behalf (section 29).
   • The OC may decide to engage paid staff, a property management company (PMC), or other professionals, or it may manage the building itself (self-management).
   • Mandatory third-party risks insurance must be in force (section 28).
   • Financial, accounting, meeting, and procurement rules in the BMO (including Schedules) and the Codes of Practice must be followed.
   • Resolutions passed at properly convened OC general meetings on management matters are binding on the MC and all owners.
3. Self-management by the OC (without a PMC):
   • Fully permissible for a 100-unit building. Under the Property Management Services Ordinance (Cap. 626), an owners’ organisation that self-manages a property with fewer than 1,500 flats without engaging a PMC or licensed property management practitioner is generally not required to hold a PMC licence. (The 1,500-flat threshold is the main exception that triggers licensing for self-managed large properties.)
   • The OC/MC must still fully comply with all BMO duties, DMC terms, and other applicable laws. Members of the MC are not treated as property management practitioners requiring licences for performing their statutory functions under the BMO.
   • Practical challenges for pure self-management of 100 units include the time commitment of volunteer MC members, technical expertise, continuity, and potential personal liability risks (though section 29A provides certain protections for MC participants acting in good faith).

Additional notes:

• The specific DMC of the building remains important and must be observed (subject to mandatory terms in Schedule 7 of the BMO that override inconsistent DMC provisions).
• Codes of Practice issued by the Secretary for Home and Youth Affairs under the BMO (on building management and safety, and on procurement) provide detailed guidance that OCs should follow.
• Owners remain ultimately responsible for their individual units and for contributing to common expenses according to their shares.
• Professional advice (legal, surveying, accounting) is recommended, especially for major works or disputes. The Home Affairs Department and District Offices provide support and guidance on OC formation and operations.

In summary, a 100-unit residential property can be effectively managed by its OC either directly or by appointing a PMC. The OC’s core legal obligation is proper management and maintenance of the common parts in accordance with the BMO and the DMC.