Tsing Yi residents take step closer to setting up corporation to tackle disputed renovation fee

Residents of a Tsing Yi private housing estate, faced with a disputed HK$160 million renovation contract, have moved a step closer to invoking a law to set up an owners' corporation to protect themselves.

Yesterday, the Lands Tribunal ordered a representative of the residents of Mayfair Gardens to set up a management committee to prepare for the establishment of the corporation.

It is the first time that residents of a housing estate have sought to form a corporation under section four of the Building Management Ordinance - which requires the endorsement of owners holding at least 10 per cent of the shares in aggregate. The calculation of shares is based on the floor area of each flat.

The tribunal heard the 690 applicants had garnered the support of 10.4 per cent of the 65,000 shares of the estate.

If a corporation is formed under two other sections of the ordinance, it must meet the threshold of 20 per cent to 30 per cent of the shares in aggregate.

Barrister Jeffrey Tam Chun-kit, representing the 690 applicants, said some residents had tried to form a corporation under sections 3 and 3(A) before, but in vain.

Kwai Tsing district councillor Andrew Wan Siu-kin, who is helping the residents with the legal proceedings, said outside court that they needed to proceed under section four because of the unique composition of ownership of the estate.