« 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?

Supreme Court Order for Disqualification: Mr Jim Lacey, former Chief Executive and non-executive director of National Irish Bank, should be disqualified for four years and six months

17 December 2015


Appeal

On the 17th December 2015, the Supreme Court made an Order on consent, that the Order of the High Court (Mr. Justice Murphy) made on the 7th June 2011 disqualifying Mr. Lacey for a period of nine years pursuant to section 160(2) (b) (d) and (e) of the Companies Act 1990 be vacated and in lieu thereof the Court made an Order disqualifying Mr. Lacey for a period of 4 years and six months commencing on the 7th June 2011.  The Supreme Court further ordered that all previous Orders for costs be vacated and ordered that Mr. Lacey pay the amount of €142,768. 50 to the Director as a contribution to the Director’s legal costs.

The approved written Judgment of the High Court is available to read.



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