MOK PING CHEONG ADOLF AND ANOTHER v. THE INCORPORATED OWNERS OF MA’S MANSION

MOK PING CHEONG ADOLF AND ANOTHER v. THE INCORPORATED OWNERS OF MA’S MANSION

Once owners have incorporated, the corporation may legitimately maintain its own bank account under s20 and management fees may be deposited into the IO's account; paragraph 3 of the Seventh Schedule does not require continued use of a manager's account after incorporation. The HK$30 levy was a valid contribution to a special fund under Seventh Schedule paragraph 4 and was properly resolved by owners in general meeting.

Citation
MOK PING CHEONG ADOLF AND ANOTHER v. THE INCORPORATED OWNERS OF MA’S MANSION
Parties
Applicant/respondent: Mok Ping Cheong Adolf; Applicant/respondent: Chan Sau Chun; Respondent/applicant: The Incorporated Owners of Ma's Mansion
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
26 January 2005
Case Number
LDBM339/2004
Procedural Posture
Building Management Application (lands Tribunal) / Judgment (reasons for Judgment Delivered 26 January 2005)
Outcome
Applicants' declarations dismissed; IO's claim for arrears and interest granted; applicants ordered to pay costs.
Legal Topics
Bank Account for Management Funds, Validity of Owners' Resolution, Seventh Schedule of BMO, Sections 20 22 BMO and Fifth Schedule, Special Fund Versus General/contingency Fund
Source Language
EN
Building Management Property Law Contract Law Statutory Interpretation Bank Account for Management Funds Validity of Owners' Resolution Seventh Schedule of BMO Sections 20 22 BMO and Fifth Schedule +1 more

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Parties

Mok Ping Cheong Adolf

Applicant/respondent

Chan Sau Chun

Applicant/respondent

The Incorporated Owners of Ma's Mansion

Respondent/applicant

Procedural Posture

Building Management Application (lands Tribunal) / Judgment (reasons for Judgment Delivered 26 January 2005)

Legal Issues

  1. 1 Whether management fees must be paid into a bank account maintained by the manager under Seventh Schedule para 3 or may be paid into the incorporated owners' account under BMO s20
  2. 2 Whether the owners' general meeting resolution of 20 August 1999 increasing management fees by HK$30 was valid or should have been made by the management committee under s22
  3. 3 Whether paragraph 3 of the Seventh Schedule displaces statutory scheme once owners incorporate

Ratio Decidendi

Once owners have incorporated, the corporation may legitimately maintain its own bank account under s20 and management fees may be deposited into the IO's account; paragraph 3 of the Seventh Schedule does not require continued use of a manager's account after incorporation. The HK$30 levy was a valid contribution to a special fund under Seventh Schedule paragraph 4 and was properly resolved by owners in general meeting.

Court Disposition

Applicants' declarations dismissed; IO's claim for arrears and interest granted; applicants ordered to pay costs.

Orders

  • First declaration that management fees are not being handled in accordance with the BMO refused
  • Second declaration that the 20 August 1999 resolution was null and void refused