Dáil Éireann Debate, Tuesday - 27 February 2024
329. Deputy Patrick Costello asked the Minister for Justice if she will establish an owners' management company (OMC) regulator on an interim non-statutory basis to address conflicts of interest issues where OMCs are still controlled by the original builder-developers and inappropriate procurement practices being used in terms of awarding of contracts and payments being made to directors; and if she will make a statement on the matter. [8684/24]
View answer345. Deputy Bríd Smith asked the Minister for Justice if she plans to establish an owners’ management companies regulator on an interim non-statutory basis with its operations funded by a levy on OMCs; the steps she will take to guarantee impeccable governance and transparency in this regard; and if she will make a statement on the matter. [8931/24]
View answerI propose to take Questions Nos. 329 and 345 together.
The Multi-Unit Developments (MUDs) Act 2011 was enacted with the primary purposes of reforming the law relating to the ownership and management of common areas of multi-unit developments, and facilitating the fair, efficient and effective management of owners' management companies (OMCs). Well-functioning OMCs are key to maintaining and sustaining higher-density residential developments, such as apartments.
As regards the establishment of a Regulator for OMCs, there are no plans at present to introduce a specific oversight and enforcement mechanism for OMCs. However, it should be noted that OMCs are subject to company law provisions, including their own memorandum of association, and are subject to oversight by the Companies Registration Office and the Corporate Enforcement Authority. Furthermore, the Competition and Consumer Protection Commission also plays a role in providing information and advice to intending purchasers of residential units in multi-unit developments.
The MUDs Act acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions and makes provision for the resolution of such disputes. For example, section 24 provides that a person, including any member of an OMC, may apply to the Circuit Court for an Order to enforce any rights conferred or obligations imposed by the Act. Section 24(2) allows the Court to take into account whether the parties have tried to resolve their differences by mediation or other alternative dispute resolution. While section 27 provides for court-directed mediation if the court considers that a ‘mediation conference’ between the parties would assist in reaching a settlement of the matter.
