LEUNG WAI CHING AND OTHERS v. THE INCORPORATED OWNERS OF HIP LEE BUILDING

LDBM 196/2013

IN THE LANDS TRIBUNAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

BUILDING MANAGEMENT APPLICATION NO. 196 OF 2013

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J U D G M E N T

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1.  The 1^st to 11^th and 13^th to 16^th Applicants are registered owners of various units in Hip Lee Building, 12-30 Hang On Street, Kowloon, Hong Kong (“the Building”).  The total undivided shares held by them comprises 11% of the total undivided shares therein.

2.  The Respondent was incorporated and registered as a corporation under the Building Management Ordinance on 25 January 1996.

3.  The immediately preceding Management Committee of the Respondent consists of: -

	(1)	Mr. Yeung Chiu Po, the Chairman;
	(2)	Ms. Leung Ching Ping (deceased), the secretary; and
	(3)	Mr. Chan Sze Keung, the treasurer.

4.  On 17 June 2009, a general meeting convened whereby it was resolved that all the said members of the Management Committee of the Respondent resigned from their respective posts.  The said resignation was registered in the Land Registry against the Respondent on 9 July 2009.

5.  Since then, the positions in the Management Committee became vacant and all operation of the Respondent was in effect stalled.  No general meetings could be convened and no resolutions regarding the management of the Building could be discussed and passed.

6.  There are certain management problems persisting until now: -

(a)	Annual general meetings cannot be held pursuant to the BMO;
(b)	the third party risks insurance policy pursuant to the Building Management (Third Party Risks Insurance) Regulations (Cap. 344B) could not be taken out as the bank account opened with the Bank of Communications in its name could not be operated;
(c)	the demand by the Building Department cannot be complied with and as a result the Government Contractor was instructed by the Building Department to carry out emergency drainage work and again it is not possible to effect payment due in the sum of HK$32,663.10 as the bank account could not be operated.  The Respondent shall therefore risk heavy burden of interest while owners shall risk a first charge against their titles if the said costs and charges are not settled in good time;
(d)	the demand by the Electrical and Mechanical Services Department to carry out relevant test for certificates for fixed electrical installations under the Electricity (Wiring) Regulations (Cap. 406E) could not be complied with.

7.  By way of the present application the Applicants seek to have an owners meeting to be convened by the 1^st Applicant so that new members can be elected to the Management Committee.

8.  For obvious reasons, there was no one representing the Respondent and the Respondent was regarded as absent at the trial.  I am satisfied that the present proceedings had been served on each and every of the owners and occupiers of all units of the Building and the same had been posted up at the 5 main entrances of the building pursuant to my orders dated 10 September 2013 and 11 October 2013; the proceedings had as such been brought to their attention.  I order the trial to proceed in the absence of the Respondent.

9.  After hearing evidence of the 1^st Applicant as set out in the above.  I am satisfied that she is truthful and reliable.  I agree that an owner’s meeting has to be convened to elect new members to the Management Committee.  I make an order in terms of the application.

Order

10.  The 1^st Applicant is hereby appointed to convene a meeting of owners to appoint a Management Committee within 1 month.

Costs

11.  Costs be to the Applicants; such costs are summarily assessed at HK$27,000.