Catherine Murphy (Kildare North, Independent)
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Question 135: To ask the Minister for Enterprise, Trade and Employment the changes he anticipates will be needed in company law in order to deal with the specific circumstances of licensing management companies; and if he will make a statement on the matter. [15701/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Residential 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 is a matter for determination by the company members, who generally are the owners of the properties in question.

The Companies Acts do not seek to regulate for specific areas of activity in which companies may engage, nor do they seek to provide for the licensing of companies to undertake specific activities. Such regulation or licensing is seen as a matter for the Department or Agency with sectoral responsibility for the activity concerned.

However, the General Scheme of the Companies Consolidation and Reform Bill, which has recently been finalised by the Company Law Review Group, proposes to include certain provisions in company legislation which will facilitate the operation of residential management companies. These provisions include an exemption for such companies from the normal limit of 99 members which applies to private companies limited by shares, and a provision whereby the membership of a residential management company will transfer automatically from the vendor to the purchaser of the underlying property to which the membership relates, upon the sale of that property.

I expect to receive a copy of the Company Law Review Group Report and its General Scheme shortly, at which point I will consider the proposals therein in consultation with my Government colleagues.