The deadline for transferring the common areas into Owner Management Companies was 1st October 2011 yet many Developers have not yet acted. If the transfer has not been completed, the members are open to go to the Circuit Court and secure an order forcing the Developer to transfer the common areas.

As business advisors, you should advise both your developer clients and Directors of Owner Management Companies of the obligations under the new Act and to take the necessary steps to comply.

If you want a sample letter to send to your developer clients and to the Directors of the Owner Management Companies, send an email to csweeney@omnipro.ie for a copy of the letters.

Valid AGM’s

A requirement for all companies is to hold an Annual General Meeting in each calendar year. The Directors are required to lay the accounts of the company before the members, re-appointment the Directors of the Company, re-appoint the Auditors and fix their remuneration.

The Multi-Unit Development Act also imposes a requirement on Owner Management Companies to prepare an Annual Report to contain prescribed details and to lay this report before the members at a meeting. The members must be given 21 days’ notice, given the annual report 10 days before the meeting and the meeting must be held close to the Multi-Unit Development.

One of the main issues with AGM’s for Owner Management Companies is who are the members that are entitled to receive notice and attend and vote at the AGM??? Prior to the enactment of the Multi-Unit Development Act, the developer and their nominees were often still listed as the members of the company and they were the only persons entitled to attend and vote at the AGM.

The new Act gives owners of units in a Multi-Unit Development Act automatic membership of the Owner Management Company and no other person is entitled to attend and vote. The unit owners will now be the only persons entitled to attend and vote at meetings of the OMC.

OMC’s with a 31 December 2010 year end have recently held (or should have held!) their AGM and if notice was given to the wrong members, the meeting is invalid and is an offence under the Companies Acts.

If you are an Accountant or Auditor of an Owner Management Company, it is important that you advise Directors of the OMC’s that they comply with the new membership rules, give notice to the correct members, update the register of members and hold valid meetings for the company.

Was the last AGM you attended validly held???

Conor Sweeney,
Director,
Omnipro Corporate Consultants,
Block D, Iveagh Court,
Harcourt Road,
Dublin 2.

Mobile - 087 2434384
E-mail - csweeney@omnipro.ie
Web   - www.omnipro.ie.