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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?

In the Matter of Eurofood IFSC Limited and In the Matter of the Companies Acts 1963 - 2003, Supreme Court Record Number, 147 / 04.

27 July 2004


In the Matter of Eurofood IFSC Limited and In the Matter of the Companies Acts 1963 - 2003, Supreme Court Record Number, 147 / 04.
Judgment of the Supreme Court and separate (unanimous) Judgment of Mr Justice Fennelly delivered on 27th July 2004 on foot of an appeal taken from a Judgment of Mr Justice Kelly (delivered on 23rd March 2004) dealing with an application for the winding-up, under the Companies Acts 1963 to 2003, of Eurofood IFSC Limited - a wholly-owned subsidiary of Parmalat SpA.

This case (in which the Director of Corporate Enforcement was one of the Notice Parties) was the first to be dealt with by the Irish courts where issues arose concerning the interpretation of the European Insolvency Regulation (Council Regulation (EC) 1346/2000 of 29 May 2000 on Insolvency Proceedings). As appears from these Judgments, the Supreme Court has decided to seek preliminary rulings (pursuant to Article 234 of the Treaty Establishing the European Community) from the Court of Justice of the European Communities. The questions to be referred to the Court of Justice are specified at page 24 of the Judgment of the Court

Click here to access the Judgment of the Court (PDF)(236Kb)
Click here to access the separate (unanimous) Judgment of Mr Justice Fennelly(PDF)(165Kb)
Click here for a link to the High Court Judgment of Mr Justice Kelly
• Click here for a link to the website of the Court of Justice of the European Communities

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