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 and Patrick McCann

30 November 2010


Supreme Court decision allowing the Director’s appeal against a decision of the High Court refusing 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:
Supreme Court, Dublin.

Judges:
Mr Justice O’Donnell, Mr Justice Finnegan and Mr Justice Fennelly

The Appeal:
The Director successfully appealed against an Order of the High Court refusing to disqualify Mr. McCann under section 160(2)(b) and (d) of the Companies Act 1990 (as amended), 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. The Director’s application in the High Court followed an investigation by the Director of the report of an authorised officer who was appointed to Kentford Securities Limited 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.

The Outcome:
In a written judgment delivered today, the Supreme Court allowed the Director’s appeal. The decision of the Supreme Court was unanimous. However, the Supreme Court indicated that it would hear submissions from the parties at a later date as to (i) the appropriate period of disqualification and the conditions that might be attached to it by way of limitation to specific clients or limitations on sole practice or otherwise and (ii) in relaiton to the issue of costs.

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. And also the High Court Judgment refusing to disqualify Mr. McCann. See also the entry at ‘Tuesday 1st February 2011’ on our website in relation to the two year disqualfication term imposed.

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