Dáil Éireann Debate, Tuesday - 23 April 2024
248. Deputy Patrick Costello asked the Minister for Enterprise, Trade and Employment the actions being taken by the Companies Registration Office and the Corporate Enforcement Authority in relation to the owners’ management companies and ensuring that they are adhering to the necessary rules and regulations; and if he will make a statement on the matter. [17321/24]
View answerThe functions of the Corporate Enforcement Authority (CEA) include investigating suspected breaches of the Companies Act 2014 (the Act) and, where necessary, to enforcing the Act arising from non-compliance with it.
Owner Management Companies (OMCs) incorporated under the Companies Act 2014, come within the remit of the CEA. The CEA investigates all complaints received regarding alleged non-compliance with the 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, owner management companies are subject to the provisions of the Multi-Unit Developments Act 2011 (the MUD Act), which regulates the ownership and management of the common areas of multi-unit developments. The MUD Act provides that before a developer sells any units:
• an owners' management company must be set up, and
• the common areas of the development must be transferred to the owners' management company
A multi-unit development is a development of at least 5 residential units that share facilities, amenities and services.
Where many of the obligations arising under the MUD Act concern matters such as the management of common areas, sinking funds and charges, and where the MUD Act does not create any criminal offences, the CEA has no role in relation to alleged non-compliance with, or enforcement of, the MUD Act. The Multi-Unit Development Act 2011 is the responsibility of the Minister for Justice.
For clarification, the CEA does have a role where those companies fail to comply with their obligations under the Companies Act 2014 only.
Separately, the Companies Registration Office does not discriminate between companies in terms of filing obligations and treats OMCs of multi-unit developments no differently to any other company in terms of their filing obligations under the Companies Act 2014.
