Dáil Éireann Debate, Wednesday - 20 March 2013
378. Deputy Terence Flanagan asked the Minister for Justice and Equality if there is a way for owners who are not directors of a management company to take control of their management company under the Multi-Unit Developments Act when AGMs are being held; and if he will make a statement on the matter. [14204/13]
View answerAn owners' management company in a multi-unit development is a company registered under the Companies Acts. Therefore, the position is that the appointment and removal of directors of a company are regulated, not under the Multi-Unit Developments Act 2011, but under the Companies Acts and under the Articles of Association of the company.
Section 16 of the Multi-Unit Developments Act 2011 deals with the issue of life-long or long-term directors of owners’ management companies. In certain circumstances, directors appointed by a developer were entitled to remain as directors for life. The section provides that this shall not be permitted after the coming into operation of the section (1 April, 2011). A director shall not be permitted to have a term exceeding 3 years in the first instance. Where such a situation exists at present, the director must relinquish the position within 3 years of the coming into operation of the section.
