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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?

S.150 Practice Direction: From the 24th day of March 2003 the following procedures and prescribed forms shall apply.

20 June 2003

From the 24th day of March 2003 the following procedures and prescribed forms shall apply in respect of restriction applications to the Court under section 150(1) of the Companies Act 1990 for a declaration that one or more directors of an insolvent company which is in voluntary liquidation be restricted. 
 
 Click here to download the S.150 Practice Direction 
 
S.150 Practice Direction - Forms:
There are 3 Forms referred to in the S.150 Practice Direction. 
 
 Form 1 is the Originating Notice of Motion that is to be utilised by liquidators, the Director and receivers as appropriate for applications for declarations pursuant to section 150 in accordance with the practice directions above. 
 
 Form 2 is the Grounding Affidavit that is to be utilised by liquidators, the Director and receivers as appropriate to ground applications for declarations pursuant to section 150 in accordance with the practice directions above. 
 
Form 3 is the form of Appearance that must be filed in the High Court by company directors or by solicitors acting on their behalf within 10 days of the service of the papers by the liquidator, the Director or receivers upon the company directors if the company directors if the company directors wish to defend the application.

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