« 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?

Appeal - The Director of Public Prosecutions AND Ignatius Forde

Friday

28 November 2014


Appellant
The People (At the Suit of The Director Of Public Prosecutions)

Respondent:
Ignatius Forde, 54 Burrin Street, Carlow, Co. Carlow.

Venue:
The Court of Criminal Appeal, Courts of Criminal Justice, Parkgate Street, Dublin 8.

Judges:
Judge Birmingham; Judge Sheehan; and Judge Mahon.

Details of Sentence under appeal:
Ignatius Forde was charged on 1st May 2014 in Carlow Circuit Court on fifty counts arising from his having acted as an auditor when disqualified from so doing contrary to section 187 of the Companies Act 1990 and to his having produced false audit reports contrary to section 242 of the same Act. On the 15th May 2014, The Court directed in relation to the charges made against him on 1st May 2014, that Mr. Forde be convicted on one count of producing a false audit report contrary to section 242(1) of the Companies Act 1990 and fined €1,000. All other counts were taken into consideration.

Outcome of Appeal:
The Court of Criminal Appeal found that the sentence imposed by Carlow Circuit Court on the 15th May 2014 was unduly lenient and increased the penalties as follows: Mr. Forde was directed to serve 200 hours Community Service in lieu of a 12 month imprisonment term and the fine of €1,000 imposed in the Circuit Court was increased to €3,000.

Arising from his Circuit Court conviction Mr. Ignatius Forde is deemed, pursuant to Section 160 (1) of the Companies Act 1990, to be the subject of a disqualification order for a period of 5 years commencing from the date of his conviction on 1st May, 2014 and the Court of Criminal Appeal left that deemed disqualification order undisturbed. 

See Circuit Court Case
See 2007 Case

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