Written answers
Tuesday, 9 July 2024
Department of Justice and Equality
Legislative Measures
Patrick Costello (Dublin South Central, Green Party)
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556. To ask the Tánaiste and Minister for Justice and Equality if her Department will compile an official guide outlining the rules and responsibilities of all stakeholders under the Multi-Unit Developments Act 2011; how to ensure fair, efficient and effective management of owners' management companies ; to detail the parameters and powers of the Companies Registration Office and the Corporate Enforcement Authority to provide legal oversight related to the Act; and if she will make a statement on the matter. [29844/24]
Helen McEntee (Meath East, Fine Gael)
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The Multi-Unit Developments (MUDs) Act 2011 facilitates the fair, efficient and effective management of owners' management companies (OMCs).
The MUDs Act sets out a number of obligations on OMCs, such as in relation to the management of annual service charges by OMCs and expenditure incurred of a non-recurring nature by OMCs (ie ‘sinking fund’ expenditure). The MUDs Act and the obligations contained therein can be read in full at the following link: Multi-Unit Developments Act 2011 (irishstatutebook.ie)
In addition, the Housing Agency which is a statutory body under the aegis of the Department of Housing, Local Government and Heritage, already provides extensive information and guidance relevant to residents and OMCs in dealing with their obligations and rights under the MUDs Act.
Further information can be found on the Housing Agency website at the following link: Multi-Unit Developments / Managed Estates | The Housing Agency
As regards legal oversight of OMCs, it should be noted that OMCs are subject to company law provisions under the Companies Act 2014 (‘2014 Act’), including their own Memorandum of Association and are subject to oversight by the Companies Registration Office and the Corporate Enforcement Authority (CEA).
The CEA investigates all complaints received regarding alleged non-compliance with the 2014 Act. In that regard, the principal obligations imposed by the Act on companies and their directors include those relating to the holding and conduct of annual meetings of the members, proper record keeping, financial statements and audit (where applicable), the conduct of directors, and the filing of required documents with the Companies Registration Office (CRO).
Where non-compliance with the Act is identified, the CEA takes appropriate action, which can include securing voluntary rectification, civil enforcement (such as requiring company directors to take certain action) and criminal prosecution. Anyone who suspects that company law is not being complied with can make a complaint to the CEA.
The Authority is also a prescribed person to receive protected disclosures concerning relevant wrongdoings under the protected disclosures legislation.
Separately, the Companies Registration Office treats OMCs of multi-unit developments no differently to any other company in terms of their filing obligations under the Companies Act 2014.
Furthermore, the MUDs Act also acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions on OMCs. Section 24 of the MUDs Act makes provision for the resolution of such disputes.
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