Written answers

Wednesday, 28 September 2005

Department of Enterprise, Trade and Employment

Property Management Companies

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 177: To ask the Minister for Enterprise, Trade and Employment the status of his review of the law regarding the regulation of apartment complex management companies; and if he will make a statement on the matter. [22301/05]

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 660: To ask the Minister for Enterprise, Trade and Employment the progress which has been made on the promise contained in the programme for Government to consider the introduction of legislation to regulate the establishment and operation of apartment complex management companies. [24962/05]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 681: To ask the Minister for Enterprise, Trade and Employment the reason for the long delay in introducing new legislation to protect apartment owners against unscrupulous management companies; the action he intends to take in the short term to address this growing problem and curb overpricing of insurance, maintenance costs and so on by some companies; and if he will make a statement on the matter. [25697/05]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 177, 660 and 681 together.

Apartment complex management companies are generally constituted as companies limited by guarantee under the Companies Acts and are required to comply with the relevant provisions of company law. The operation of such companies under their relevant memorandum and articles of association, including choice of a management entity and of insurance provider, is a matter for determination by the company members, who are the owners of the properties in question.

The Company Law Review Group is currently reviewing the legal provisions relating to companies limited by guarantee with a view to simplifying the law in this as in other areas of company law. In its annual report for 2004, the review group indicates that among its recommendations it will propose that: there should be no limitation on the maximum number of members a guarantee company may have; and an audit exemption provision should be introduced for guarantee companies. I anticipate bringing the comprehensive set of proposals emerging from the review group to Government for approval to draft a Bill at the end of this year.

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