« back 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?

The Director of Corporate Enforcement v Deneview Management Company Limited

Monday

26 May 2014


Details of Defendant:
Deneview Management Company Limited

Registered Office/Address:
11 Malahide Road, Swords, County Dublin

Venue:
Dublin Metropolitan District Court

Judge:
District Judge John O’Neill

Alleged Offences:
The Defendant company was charged with two contraventions of Section 119(3) of the Companies Act 1963, as amended, of refusing to facilitate an inspection of its Register of Members and failing to send a copy of its Register of Members to an entity entitled to its disclosure.

Outcome:
In the absence of an appearance by or on behalf of the company, the Defendant was convicted and fined the sum of €2,000 on each of the two Charges, ordered to pay the prosecution Costs of €1,250 and was allowed 1 month from the 26th May 2014 to pay the Fines and Costs or suffer Distress in default.

The Court also made an Order in accordance with Section 119(4) of the Companies Act, 1963, as amended, that the company provide an immediate inspection of its Register of Members and for a copy of its Register of Members to be sent to the Complainant.

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Office of the Director of Corporate Enforcement
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Telephone: +353 1 858 5800
Email: info@odce.ie