« 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 today disqualified Mr Barry Seymour for nine years in consequence of the findings made by High Court Inspectors in their Report into National Irish Bank Ltd (NIB) and NIBFS.

20 March 2007


Re: Barry Seymour 

The High Court today made an order disqualifying Mr. Barry Seymour for a period of nine years under Section 160(2)(e) of the Companies Act 1990 in proceedings initiated by the Director on foot of a High Court Inspectors Report, together with an Order for costs in favour of the Director. However, the High Court granted a stay on the disqualification order and the order for costs pending an appeal by Mr. Seymour on the undertaking of the solicitor for Mr. Seymour during the stay, to give prior notice to the Director should Mr. Seymour intend to be appointed as a director of any company in this jurisdiction. 

Subsequent to the making of the High Court disqualification order, Mr. Seymour lodged a Notice of Appeal to the Supreme Court and in the circumstances, the disqualification order and the order for costs are stayed pending the determination of the appeal by the Supreme Court. 

Related Case 

See also the earlier High Court Judgement of 16 November 2006 where the Court directed that Mr Seymour attend the trial of the disqualification proceedings taken against him for the purpose of his being cross-examined on his sworn affidavits. 

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