In the ever-evolving legal landscape of property management, staying up-to-date with regulatory changes is essential for industry professionals. On April 9, 2025, our firm’s solicitor, Ms. Law Kit-yee, was invited to deliver a professional legal training session to Citybase Property Management Company Limited (“Citybase”), a leading name in Hong Kong’s property management sector. The training focused on the latest updates to the 2024 Building Management (Amendment) Ordinance and their practical implications.

Citybase is one of the largest property management companies in Hong Kong and a founding member of the Hong Kong Association of Property Management Companies. Known for its professionalism and meticulous approach to property management, Citybase actively monitors legislative developments and is one of the few companies in the industry that proactively promotes compliance training. This session reflects the company’s strong commitment to legal responsibility and its high level of professionalism toward clients and property owners.

I. Background to the Amendments: Why the 2024 Revisions?

Since its inception, the Building Management Ordinance (Cap. 344) has served as the cornerstone of building governance in Hong Kong. However, changing social dynamics and the aging building stock have highlighted shortcomings in the original provisions. The 2024 amendments aim to:

• Enhance the transparency and accountability of Owners' Corporations (OCs)
• Strengthen oversight of the relationship between property owners and management companies
• Clarify the legal responsibilities and boundaries between OCs and management firms
• Address public concerns regarding dispute resolution in building management

II. Key Highlights from the Training

Ms. Law delivered the session in a clear and accessible manner, combining legal analysis, case studies, and real-world practices to explain the following core topics to Citybase’s management team and frontline staff:

1. New Rules for Organizing and Operating Owners' Corporations

• OCs must now hold regular meetings and publicly disclose financial reports under new guidelines
• Clear eligibility criteria for committee members introduced, along with mandatory conflict-of-interest declarations

2. Reform of Tendering and Contracting Systems

• All major maintenance and service contracts must be publicly tendered
• A mandatory “Tender Evaluation Committee” system must be established to prevent conflicts of interest

3. Strengthening Oversight of Management Companies’ Roles

• Legal responsibilities of management companies toward both OCs and owners are clearly defined
• A formal complaint and arbitration mechanism is introduced to handle service disputes

4. Enhanced Enforcement and Penalties

• New penalty provisions introduced for violations such as non-disclosure of accounts or unauthorized board appointments
• Expanded investigative and enforcement powers granted to the Buildings Department and related authorities

III. Strategic Response: Legal Advice from Ms. Law

Ms. Law emphasized three key strategies for OCs and management companies to navigate the new legal landscape:

• Regular Legal Compliance Reviews: Evaluate existing operations to ensure alignment with the updated legal framework
• Institutionalized Internal Training: Educate every staff member on their duties and statutory responsibilities
• Maintain Legal Counsel Contact: Seek timely legal advice when facing complex cases to minimize legal risks

IV. Citybase’s Commitment to Professionalism and Forward Thinking

Citybase remains steadfast in its mission to deliver high-quality, transparent, and efficient services to property owners. The organization of this training session illustrates:

• A Commitment to Continuous Professional Development: Legal training equips staff with updated knowledge and raises service standards
• Keen Awareness of Legislative Changes: Ensures all operations comply with current laws
• A Culture of Proactive Compliance: Going beyond statutory requirements to set a positive example for the industry

In facing the challenges brought by the 2024 amendments, Citybase chose to take initiative by fortifying its legal foundation—ensuring its services continue to operate within a sound legal framework.

V. Conclusion: Proactivity is Key in Adapting to Legal Reform The passing of the 2024 Building Management (Amendment) Ordinance signals the government’s intent to standardize building governance in Hong Kong. Ms. Law underscored that both OCs and property management companies must stay ahead of legal developments and cultivate a management culture grounded in legal awareness. Doing so not only safeguards their own interests but also enhances service quality across the board.