What is an owners corporation?  latest news
An Owners Corporation (OC) is a body corporate established under the Ordinance to legally manage the common parts of a building on behalf of all owners.
 

Why set up a corporation?
Hong Kong has less land and more people, and most of the citizens live in multi-storey buildings or private housing estates composed of multiple buildings. Since the owners jointly own the common parts of the building, they are also jointly responsible for the management and maintenance of the common parts.
 

However, managing and maintaining a building is not an easy task and involves a lot of work. Whether it is a small matter, such as the cleaning of public areas, garbage disposal, or a major event, such as hiring a property management company, hiring a maintenance company for large-scale repairs, etc., all involve the decision-making process. A large housing estate may have hundreds or even thousands of owners. If every decision on building management requires the unanimous consent of all owners, it is not only time-consuming, but also almost impossible. Therefore, owners need a mechanism to facilitate their collective decision-making on building management matters.
The Ordinance is providing such a mechanism for owners to register as a corporation to act as a legal person on behalf of all owners in matters related to building management. The formation of a corporation allows owners to discuss all matters relating to building management at a general meeting of owners of the corporation duly convened and held under the Ordinance,
And make collective decisions that are binding on all owners.
If the DMC contains any provisions preventing the owners from being incorporated as a corporation, these provisions shall be void and void.
Section 34J(1) of the Ordinance
 

Chapter 2 Owners' Corporation

Powers and duties of corporation
 

After the establishment of the corporation, the rights, powers, privileges and duties of the owners in relation to the common parts shall be exercised and executed by the corporation. And the legal responsibility of the owners for the common parts must also be enforced against the corporation.
 

Article 16 of the Ordinance
Therefore, the OC has a legal responsibility to properly manage and maintain the common parts of the building and to take all reasonably necessary measures to enforce the responsibilities of the DMC in relation to the control, management and administration of the building. In order to reduce the risk faced by the owner in the event of an accident, the corporation must purchase third-party risk insurance for the common parts of the building and the property of the corporation, and must keep the insurance policy valid.
Section 18(1) of the Ordinance Section 28 of the Ordinance
 

The corporation may decide whether to employ salaried employees, property management companies or other professional bodies or personnel to assist the corporation in performing its duties or powers. In addition, the corporation can make decisions on matters related to the common parts, such as the acquisition of facilities in the common parts, renovation, improvement or decoration works of the common parts, etc.
 

Section 18(2) of the Ordinance
The Corporation shall be guided by the Code of Practice for Building Management and Maintenance in the performance of its duties and powers. The relevant code of practice can be obtained from all District Offices, or from the Home Affairs Department Section 18(2A) The corporation may pass a resolution on the common parts of the building at the OC: Section 14(1) of the Ordinance Article‧      in relation to the control, management and administration of the common parts;
‧      Refurbishment, improvement or decoration of common parts.
These resolutions are binding on the management committee and all owners.

Management Committee
 

Building management matters are numerous. If every decision must be made by the owners' meeting, it will be difficult to deal with building management matters quickly and properly. Therefore, the day-to-day affairs of the corporation are mainly delegated to the management committee (the management committee). In general, the powers and duties conferred on a corporation by the Ordinance shall be exercised and performed by the Management Committee on behalf of the corporation.
 

Regulation 29
All owners of a building are members of a corporation, and can appoint owners they deem fit to serve as members of the management committee through a resolution passed by the owners' meeting. The members of the management committee have a fiduciary duty to all owners, and should handle corporate affairs and perform relevant duties in an open, transparent, sincere and faithful manner.