A so called "management company" is a company registered in the CRO usually as a Company limited by Guarantee (CLG) or a Designated Activity Company (DAC), with an object clause to manage a multi-unit development. The "management company" owns the common areas of the development such as: car parks, green space, stairwells, lifts and communal hallways and maintains them for the benefit of all property owners and typically provides for insurance cover.
On acquiring a unit within the development, in addition to the apartment or house such person also shares ownership of the common areas. Stemming from this, it is usually a condition of the purchaser's contract that they sign a co-ownership agreement which obliged them to become a member of the management company. These co-ownership agreements are essentially rooted in the laws of contract and private property, rather than in any particular Act of the Oireachtas. Following on from this, it should be clear that the requirement to become a member of a management company is not a requirement under company law.
There is no special body of company law which applies only to so called "management companies" or is applied differently so far as management companies are concerned. The "FAQ" (Frequently Asked Questions) section of this website answers most general company law type questions in relation to all companies. Most of the issues arising in the so called "management companies" are not company law issues and the ODCE cannot assist. The attached document lists the breaches of company law where ODCE can assist with.
Author: Maria Leavy/24 April 2017/Categories: Prosecution Cases 2017
Woman pleads guilty to Fraudulent Trading
Acting on the directions of the Director of Public Prosecutions, Gardai from the ODCE this morning arrested a woman and charged her with one count of fraudulent trading contrary to section 297 of the Companies Act 1963 (as amended). The woman was brought before Limerick District Court, where, following evidence of arrest, charge and caution she entered a plea of guilty and was sent forward for sentencing to the next sitting of Limerick Circuit Criminal Court.
Full details of the charge are set out below:
"That you Mary Donnelly, between the 1st day of January 2013 and the 25th day of October 2013, both days inclusive, within the County of Limerick, were knowingly a party to the carrying on of the business of a company Shannonside Audio/Video Limited for a fraudulent purpose namely the dishonest solicitation of payments from Close Invoice Finance Limited trading as Close Brothers Commercial Finance by furnishing false or misleading invoices: Contrary to Section 297 of the Companies Act, 1963 as substituted by Section 137 of the Companies Act, 1990."
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