« 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 Public Prosecutions v Thomas Clarke

16 March 2016

Tuesday
15 March 2016

Details of Defendant:
Thomas Clarke

Address:
Wheelam Milltown Newbridge Co Kildare
1 McElwain Terrace, Newbridge, Co Kildare

Venue:
Naas Circuit Court

Judge:
Judge Michael O’Shea

Alleged Offences:
38 alleged offences against the defendant related to his having produced false Audit Reports contrary to section 242 (1) of The Companies Act 1990 by using the name, address and signature of a person  who he falsely held out to be a qualified Auditor.  These false Audit reports were all for Limited Companies.

19 of these related to producing a false report in purported compliance with the Companies Acts, contrary to Section 242(1) of the Companies Act 1990 and as provided for by Section 240(1)-(b) of the Companies Act 1990.

The remaining19 related to delivering a false report in purported compliance with the Companies Acts, to the Registrar of Companies contrary to Section 242(1) of the Companies Act 1990 and as provided for by Section 240(1)-(b) of the Companies Act 1990.

Outcome:
The defendant was arraigned before Naas Circuit Court on 15 January 2016 where a plea of guilty was entered to five charges on the indictment. 

On the 15 March 2016 the defendant was sentenced as follows:

1.      On count one for producing a false Audit Report contrary to Section 242(1) of the Companies Act 1990, on which he entered a guilty plea, the defendant was convicted and sentenced to 2 ½  years in custody suspended for a period of two years from 15 March 2016

2.      On count two  for producing a false Audit Report contrary to Section 242(1) of the Companies Act 1990, on which he entered a guilty plea, the defendant was convicted and sentenced to 2 ½  years in custody suspended for a period of two years from 15 March 2016 .

3.      On count three for producing a false Audit Report contrary to Section 242(1) of the Companies Act 1990, on which he entered a guilty plea, the defendant was convicted and sentenced to 2 ½  years in custody suspended for a period of two years from 15 March 2016.

4.      On count four for producing a false Audit Report contrary to Section 242(1) of the Companies Act 1990, on which he entered a guilty plea, the defendant was convicted and sentenced to 2 ½  years in custody suspended for a period of two years from 15 March 2016.

5.      On count  five for producing a false Audit Report contrary to Section 242(1) of the Companies Act 1990, on which he entered a guilty plea, the defendant was convicted and sentenced to 2 ½  years in custody suspended for a period of two years from 15 March 2016.

Having been convicted on indictment of an indictable offence in relation to a company Thomas Clarke  is deemed, pursuant to Section 839 of the Companies Act 2014 to be the subject of a disqualification order, the effect of which is that he is disqualified from being appointed or acting as auditor, director or other officer, receiver, liquidator or examiner or being in any way, whether directly or indirectly, concerned with or taking part in the promotion, formation or management of any company or society registered under the Industrial Provident Societies Acts 1893 to 2014 for a period of 5 years commencing from the date of his conviction on 15 March 2016.

Theme picker


Search

Office of the Director of Corporate Enforcement
 16 Parnell Square, Dublin 1
Telephone: +353 1 858 5800
Email: info@odce.ie