The Hong Kong Bar Association has proposed a mechanism allowing apartment owners to seek court permission to bring enforcement actions in the name of their owners’ corporations to address critical safety issues, as the authorities prepare a bill for sweeping building management reforms following the deadly Wang Fuk Court fire in Tai Po last November.

The association’s submission on proposed amendments to the Building Management Ordinance, released on Sunday, expressed support for the overall direction of building management reform and the government’s commitment to enhancing transparency, accountability and governance standards in the sector.

Jose-Antonio Maurellet, who chairs the association, told China Daily on Saturday the mechanism, modeled on “derivative action” in company law, would give owners a safeguard short of the step taken at Wang Fuk Court, where the government disbanded the owners’ corporation. But, he said, taking that step would be “very drastic and expensive” and “may be unnecessary” in some circumstances.

The association says it is worth exploring whether the ordinance should “introduce a mechanism enabling relevant owners to seek permission to bring an enforcement action in the name of the owners’ corporation” when it unreasonably refuses to act on a safety-critical breach.

Maurellet stressed that permission, if granted, would be tightly limited to safety matters like fire hazards and structural defects, or cases where the corporation is shown to be acting unreasonably or improperly.

ALSO READ: Lee vows full reform, accountability after Tai Po fire report

The submission suggests that the Lands Tribunal could grant injunctions and order remedial works.

According to Maurellet, the main benefit may be that cases might never reach court. “Most of these things, if you have access to court, then people don’t need to go to court. That’s the beauty,” he said. He expects governance standards concerning owners’ corporations to rise just as companies sometimes change course once a shareholder threatens a derivative action.

Company law already provides for such action, and adapting it would not be “too difficult to legislate if the government is so inclined”, Maurellet said. “We’re proposing this as something that we think deserves serious consideration.”

The Home Affairs Department told China Daily it is reviewing the feedback from public consultations that ended last month, and aims to submit proposals to the Legislative Council this year.

ALSO READ: 25 charges levied against 7 people, 2 companies in deadly Tai Po fire

The authorities will also launch a three-tier dispute resolution mechanism next year, starting with District Council members and professional mediation, to be followed by court adjudication.

Experts in related sectors have also demanded stronger oversight.

Tse Wai-chuen — founding president of the Hong Kong Property and Facilities Management Association of the Greater Bay Area — said professionalism and transparency are key to governing owners’ corporations.

He said a government representative should be invited to oversee corporation’s meetings on critical issues, such as large-scale renovation projects, when at least five percent of owners request it.

READ MORE: Tai Po fire hearing identifies areas for improvement in safety, regulations

Tse and Maurellet said electronic voting to bypass proxies in corporations’ decision-making is needed, with strong backing from the government’s iAM Smart digital platform used to aid the voting process.

Concerns over concentrated proxy power in owners’ corporations have been widely raised since the Wang Fuk Court fire.

Lawmaker and barrister Alex Fan Hoi-kit said statutory safeguards for the decision-making process would help owners exercise their autonomy over private property.

The legislature should ensure that the provisions are “unequivocal and practically workable, and carry real deterrent effects”, he said.

Transparency is another shared theme to resist bid-rigging. “The sun is really the best disinfectant,” Maurellet said.

The HKBA proposed stricter interest declarations, saying consultants and contractors who are not necessarily covered at present should declare their direct or indirect interests, as well as non-interests.

Tse suggested widening the range of contractors and consultants required to declare interests in order to combat bid-rigging.

Criminalizing bid-rigging is another point of consensus between the government and legal professionals.

Maurellet also said that proxy forms should warn that falsifying a proxy is a crime.

He called for online classes to be conducted for members of owners corporations who are mostly volunteers and often lack relevant expertise.

Contact the writers at jessicachen@chinadailyhk.com