« 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 Supreme Court set aside an order of the High Court disqualifying a person

28 July 2009


The Supreme Court today made an order setting aside an order of the High Court disqualifying a person ("the Appellant ") under Section 160(2)(e) of the Companies Act 1990 for a period of four years, in proceedings initiated by the Director in the High Court on foot of a High Court Inspectors Report, together with an Order that the Appellant recover against the Director all of the Appellant’s costs of the High Court and Supreme Court proceedings. As a stay had been granted on the High Court disqualification order pending the determination of an appeal by the Appellant, the disqualification order made by the High Court never came into effect.

See attachment below for the approved written judgement of Fennelly J of the Supreme Court. 
 
See attachment below for the approved written judgement of Denham J of the Supreme Court 

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