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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?

Re Silken Construction Limited

21 November 2003


Re Silken Construction Limited - The Director of Corporate Enforcement (“the Director “) wishes to draw attention to a recent judgement of Ms. Justice Finlay Geoghegan which was delivered in the High Court on the 14th November 2003.

Following consideration of the facts of that case, Finlay Geoghegan J determined that a director of a company who was the subject of a section 150 application following a 'section 56 report' was entitled to an Order for Discovery pursuant to Order 31 rule 12 in relation to the provisions of the section 56 report which would enable the director to enhance his own case or save costs in defending a section 150 application, namely the answers to questions 21 (if answered), 22 and 31 (including separate sheets and appendices to the report in which those questions are answered).

On the basis of this judgement, the Director has no objection to the voluntary disclosure to company directors (if considered appropriate by the liquidator) of the answers to questions 21 (if answered), 22 & 31 and any memorandum attached to the report, which may form replies to these questions. However, the Director considers that the remainder of the report should remain confidential unless in the circumstances of a particular case the High Court indicates otherwise.

•Click here to access the judgement.
Click here to access Order 31 rule 12 which is referred to in the judgement.

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