Management Companies

01 What is a Management Company?

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.

02 Are management companies a product of company law?

No. It is important to stress that management companies have no special meaning and are in no way a requirement of company law. There is nothing in the Companies Act which states that a management company must be brought into existence in connection with any multi-unit development, and some multi-unit developments exist which do not have a management company associated with them. Furthermore, it is important to point out and emphasise that there is no special body of company law that applies solely to management companies.

03 Where can I find the legal source from which management companies operate?

Court Rulings

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The Director of Corporate Enforcement v Gerard Murphy

Tuesday

17 December 2013


 The Director of Corporate Enforcement v Gerard Murphy 
 
Details of Defendant:
Gerard Murphy

Address:
46 Saint Mary’s Road, Midleton, County Cork

Venue:
Dublin Metropolitan District Court

Judge:
District Judge John O’Neill

Alleged Offences:
The Defendant was charged with contravention of Section 56(1) and (3) of the Company Law Enforcement Act 2001 that in relation to Cork View One Limited (In Liquidation) (one Charge) and Ned Hogan Plant Hire Limited (In Liquidation) (one Charge) as Liquidator of each company he failed to provide to the Director of Corporate Enforcement Reports in the form prescribed by Regulation made under the 2001 Act relating to those insolvent companies.

Outcome:
On a plea of guilty, Section 1(1) of the Probation of Offenders Act 1907 was imposed on the Defendant in respect of each of the two Charges with the Defendant paying a sum of €500.00 on each of the two Charges to the Court’s Poor Box and agreeing to pay prosecution Costs of €1,250.00.

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