Cheung Chau Estate Managed 27 Years Without Owners' Meeting; Firm Fined HK$125,000
On.cc · 1 SOURCESabout 2 hours ago2 MIN
Summary
The Property Management Services Authority (PMSA) has penalized Cheung Sang Property Agency and Management Limited HK$125,000 and issued a severe reprimand after finding the company failed to form an owners' committee and convene owners' meetings for approximately 27 years at Kwei To Garden on Cheung Chau. The disciplinary committee also found the company made materially false statements in minutes from the estate's inaugural owners' meeting held last year. This marks the first enforcement case involving a licensed property management company for such violations since the industry licensing regime came into effect in August 2020 .
Key Points
- Cheung Sang Property Agency and Management failed to fulfill deed manager duties at Kwei To Garden for about 27 years without establishing an owners' committee .
- The estate comprises 26 blocks with 192 units and was completed in 1998, with Cheung Sang managing the property since its inception .
- During last year's first owners' meeting, the company recorded minutes with key discrepancies from the actual proceedings .
- The disciplinary panel heard the case on June 26, found the company guilty of professional misconduct under the Property Management Services Ordinance, and ordered the fine plus costs .
- Three additional property management firms were each fined HK$30,000 to HK$40,000 for failing to maintain required licensed manager staffing ratios .
Why It Matters
This case sets a significant precedent for Hong Kong's property management industry, demonstrating regulatory enforcement against companies that neglect basic obligations to residents. The PMSA's action signals that property managers can face substantial penalties for failing to uphold transparency and accountability in building administration, particularly regarding owners' democratic rights to participate in management decisions .
This case sets a significant precedent for Hong Kong's property management industry, demonstrating regulatory enforcement against companies that neglect basic obligations to residents. The PMSA's action signals that property managers can face substantial penalties for failing to uphold transparency and accountability in building administration, particularly regarding owners' democratic rights to participate in management decisions .