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.
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.
The legal source from which management companies derive their operational and functional role is set out in the title deeds of the property as well as the contract of purchase of the property. The fact that the intended functions of a management company have their roots in the title deeds is one from which an important legal consequence flows. They do not flow from the company law relationship that exists between the management company and its members.