Approval LetterThe terms and conditions for the development of Discovery Bay North (Siena, Chianti, Amalfi), dated 28 February, 2000.
Building Management Ordinance (BMO)The legislation that governs the management of buildings with multiple owners. The legislation enables owners to form a corporation to manage their buildings. It also imposes mandatory requirements on building managers to protect owners and promote transparency.
CityThe development on the Lot
City Management (CM)See, The Manager
City Owners' Committee (COC)The owners' committee for Discovery Bay. It is comprised of the Chairpersons of all Villages, as well as the representatives from the Developer (2); the Manager (2); the Schools (1); the Clubs (1) and the Hotel (1). The latter five are all controlled by the Developer; thus the Developer controls 7 seats on the COC directly. The COC has little formal power vis-a-vis the Manager under the Deed of Mutual Covenant. However, it is in the interest of all Owners to follow the work of the COC closely, as the COC has the draconian power to pass resolutions that are binding on all Owners. The COC and the VOCs also have the very important power to inspect the accounts prepared by the Manager, so as to ensure that the Owners funds are being managed carefully.
Deed Of Mutual Covenant (DMC)A contract between the Developer, the Manager and the Owners to set out their rights, obligations and responsibilities toward each other in respect of the land and the buildings within Discovery Bay City. Each Village is covered by a separate Sub-DMC, which may be further divided into separate Sub-Sub-DMCs.
DeveloperHong Kong Resort Company Limited (HKR). HKR is owned 50% each by HKR International Limited (HKRI), the company listed on the Stock Exchange (480), and CITIC Limited (267).
Discovery Bay Services Management Ltd (DBSML)See, The Manager. The company is a subsidiary of Hong Kong Resort Company Limited (HKR).
Discovery Bay Transit Services Ltd (DBTSL)The bus company. The company is a subsidiary of Hong Kong Resort Company Limited (HKR).
Discovery Bay Transportation Services Ltd (DBTPL)The ferry company. The company is a subsidiary of Hong Kong Resort Company Limited (HKR).
Hotel AubergeThe hotel. The company is a subsidiary of Hong Kong Resort Company Limited (HKR).
Land GrantThe document specifying the terms and conditions for the original grant of land to Hong Kong Resort Company Limited (HKR). Sometimes called the “lease”. This has been supplemented with a number of additional agreements between HKR and the Government, which are collectively known as the Conditions.
Legal Advisory and Conveyancing Office (LACO)The office under the Director of Lands that provides legal advice to the Department. The office is also responsible for approving all deeds of mutual covenant before a development may be put on sale. To this end, LACO has introduced a series of guidelines covering the standard format of DMCs.
Licence ClauseUnder the licence clause of the Deed of Mutual Covenant, the Developer may licence Retained Area to the Manager for use by the Owners as gardens or areas for recreation. In practice, there is no written agreement covering any of the licensed areas, and City Management (CM) has simply started to maintain an area and charge all costs to the Owners. Since the development of Neo Horizon Village, there is much stricter control of the licensing procedure (and almost no Village Retained Area). In 2012, the Developer signed an Undertaking in favour of the Government and the Director of Lands committing to terminate any existing licence over the Public Recreational Facilities and assume full responsibility for management and maintenance of such areas.
Master PlanThe purpose of the Master Plan for Discovery Bay is described in the Land Grant. Special Conditions 6 and 7 of the Land Grant require that the land at Discovery Bay be developed in conformity with the Master Plan. Thus, the Master Plan controls the extent and type of development. The current Master Plan is 6.0E1, dated 28 February, 2000. It is badly out of date, as may be seen when comparing with the current draft “6” series Master Plan, 6.0E7h(a).
Public Recreational Facilities (PRF)Under the Land Grant, the Developer is required to provide a non-membership golf course and a cable car facility for enjoyment by the public at large. After the Land Grant was signed but before the Deed of Mutual Covenant (DMC) was executed, the Developer and the Government agreed to waive the requirement for the non-membership golf course and replace it with so called Public Recreational Facilities (PRF). The provision (or lack of) PRF was the main subject of the Director of Audit investigation into Discovery Bay in 2002-03. The failure to properly distinguish between the PRF and the other developments on the Lot later became the subject of the Undertaking from 2012. The developer still has considerable unmet obligations to provide PRF under the Land Grant.
Registered OwnerAnother name for the Developer, and the name used in the Deed of Mutual Covenant (DMC). While it appears to be loaded with meaning, it is really just a name. The actual rights, obligations and responsibilities of the Developer are set out in – and are limited by – the DMC.
Supplementary Master Plan (SMP)According to the Director of Audit Report on Discovery Bay, the SMP provides the detail of the development on the Lot. SMPs were prepared as a matter of course during the 1980s and 1990s. Since the Outline Zoning Plan for Discovery Bay was approved, Lands Department has been much less strict about preparation of SMPs. Lands Department decided to dispense with SMPs altogether in 2012, and there is no SMP for the new development next to the Golf Course. This has left small owners in the rather unfortunate position of having neither an SMP nor an updated Master Plan to control development.
The ManagerCity Management (CM); Discovery Bay Services Management Ltd (DBSML); The manager for Discovery Bay under the Deed of Mutual Covenant (DMC).
UndertakingAs a condition for obtaining approval to sell flats at the Amalfi development, the Developer was required to sign an Undertaking in favour of the Government and the Director of Lands committing to bear full responsibility for the management and maintenance of the Public Recreational Facilities.
Village Owners' Committee (VOC)The owners' committees for each Village in Discovery Bay. Members are elected by the Owners at a Meeting of Village Owners, and serve for one or two years depending on the terms specified in the individual Sub-DMCs. The VOC has a number of important formal powers granted under the DMC and Sub-DMC. In addition to the power to pass binding resolutions, the VOC is empowered to direct the Chairman on any matter that is expected to be discussed at the COC and to inspect any of the accounts prepared by the Manager. Thus, the VOC has very strong powers of oversight over the management of the City and the Village.

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