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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?

High Court Decision not to disqualify Mr Patrick McCann.

17 January 2007

High Court Decision not to disqualify Mr Patrick McCann 

The Director of Corporate Enforcement and Patrick McCann. In the matter of Kentford Securities Limited (under investigation) and in the matter of the Companies Acts 1963 - 2001 and in the matter of an application by the Director of Corporate Enforcement pursuant to Section 160(2) of the Companies Act 1990.

Details of Respondent:
Patrick McCann, Certified Public Accountant and Registered Auditor of McCann and Associates, 48 Upper Drumcondra Road, Dublin 9.

Venue:
High Court, Dublin.

Judge:
Mr Justice Michael Peart.

The Application:
Under section 160(2)(b) and (d) of the Companies Act 1990 (as amended), the Director of Corporate Enforcement sought the disqualification of Mr Patrick McCann from being appointed or acting as an auditor, director or other officer, receiver, liquidator or examiner or being in any way, whether directly or indirectly, concerned or involved in the promotion, formation or management of any company or industrial and provident society. This application followed an investigation by the Director of the circumstances reported by an authorised officer (appointed under section 19 of the Companies Act 1990 by the then Minister for Enterprise Trade and Employment) who had examined the books and documents of Kentford Securities Limited.

Outcome:
In a written judgement delivered judgement today, the High Court determined that the requested order should not be made.

Related Case:
See also the earlier High Court Judgement of 7 March 2006 where the Court rejected an application by Mr McCann to dismiss the Director's disqualification proceedings against him.

Appeal:
Subsequent to the making of the High Court Order refusing to disqualify Mr. McCann, the Director successfully appealed to the Supreme Court and the Supreme Court ultimately disqualifed Mr. McCann for a period of twoyears. Details of the outcome of the Supreme Court hearing can be seen under the entries at Tuesday the 30th November 2010 and 1st February 2011 on our website.

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