« 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?

– Director publishes Information Notice I/2003/1 recording certain “relief” in respect of various liquidator reports received in 2002

23 May 2003

Mr Paul Appleby, the Director of Corporate Enforcement, has today published in the attached Information Notice certain decisions made by his office (ODCE) in respect of various liquidator reports received up to 31 December 2002.
The Information Notice lists 155 companies in respect of which the liquidator was relieved of an obligation to apply to the courts for a section 150 restriction order in respect of the directors of the insolvent companies. Such relief was granted where the ODCE was satisfied, on the basis of information provided by the liquidator or otherwise, that the directors of the insolvent company had acted honestly and responsibly in the conduct of the company's affairs. In a minority of decisions relief was granted "at this time" in cases where the ODCE was satisfied that the liquidator needed more time to investigate the circumstances giving rise to the company's demise.

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Office of the Director of Corporate Enforcement
 16 Parnell Square, Dublin 1
Telephone: +353 1 858 5800
Email: info@odce.ie