« 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 High Court disqualified Mr. Frank Brennan

22 April 2008


High Court decision in disqualification proceedings relating to Mr. Frank Brennan. 

The High Court today indicated that it was minded to make a Disqualification Order under Section 160(2)(d) and (e) of the Companies Act 1990 in proceedings taken against Mr. Frank Brennan by the Director of Corporate Enforcement arising from the Report of the Inspectors appointed by the Court to investigate the affairs of National Irish Bank Limited and National Irish Bank Financial Services Limited. The Court indicated that it would hear submissions from the parties at a later date as to the appropriate period of disqualification. 

The approved written judgment of Mr. Justice Roderick Murphy follows. 

See Attachment 'Update Brennan' for details of the subsequent fixing of the term of disqualification which the High Court determined as appropriate.

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Telephone: +353 1 858 5800
Email: info@odce.ie