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?

Court Rulings

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The Director of Corporate Enforcement v Brian Keogan Junior

07 January 2008


Details of Defendant: 
Brian Keogan Junior 

Address: 
35 Littlepace Way,
Clonee,
Co. Meath. 

Venue: 
Dublin District Court. 

Judge: 
District Judge Lindsay 

Alleged Offence: 
The defendant was charged with contravention of Section 161 (1) of the Companies Act 1990 in acting as; a) a director of BSK Construction Limited, Company No. 375424; b) a director of Crosskeys Construction Limited, Company No. 372308; and c) a director and secretary of Copanácht Management Company Limited, Company No. 403679, while subject to a restriction declaration made by the High Court pursuant to Section 150 of the same Act and failing to abide by the conditions prescribed in the Act for continuing to act as a company director or secretary. 

Outcome: 
On a plea of guilty, the defendant was convicted on each of three counts of acting as director, fined a total of €750 and ordered to pay prosecution costs of €684. The charge in relation to his acting as secretary of Copanácht Management Company Limited was taken into consideration.

Having been convicted of an offence under Section 161(1) of the Companies Act 1990, Brian Keogan Junior is deemed, pursuant to Section 161(2) of the same Act, to be the subject of a disqualification order. The Court granted an application from the prosecutor pursuant to Section 162 of the Companies Act 1990 that the period of disqualification to which Mr. Keogan is subject should be from the date of conviction (7/1/08) to 31st December 2011. The effect of this provision is that Brian Keogan Junior 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 or taking part in the promotion, formation or management of any company or society registered under the Industrial and Provident Societies Acts 1893 to 1978 for a period commencing 7th January 2008 and expiring on 31st December 2011

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