Deputy Paul Murphy asked the Minister for Justice the remedy available to residents who discover that their owners’ management company has not established a sinking fund contrary to the Multi-Unit Development Act 2011. [4617/21]
199. Deputy Paul Murphy asked the Minister for Justice the remedy available to residents who discover that their owners’ management company has not held an AGM within the timeframe set out in the company constitution and according to the relevant legislation. [4618/21]
Minister for Justice (Deputy Helen McEntee): I propose to take Questions Nos. 198 and 199 together.
In the Programme for Government, the Government has committed to conduct a review of the existing management company legislation. My Department will engage with relevant Departments in relation to advancing this matter.
The Multi-Unit Developments 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). These are companies registered under the Companies Acts, the members of which are the owners of residential units within the development, which are established for the purposes of ownership and management of such common areas.
Insofar as the enforcement of any right conferred, or obligation imposed, by the Act is concerned, sections 24 and 26 provide that a person may apply to the Circuit Court for an order to enforce any such right or obligation. Section 25 defines the persons who may apply for, or appear and be heard at, an application for a court order under section 24. They include the developer, the OMC, an owner of a residential unit in the development (i.e. a member of the OMC) or such other person as the court sees fit. The Court, if satisfied that a right has been infringed or an obligation has not been discharged, may make such remedial order as it deems appropriate in the circumstances with a view to ensuring the effective enforcement of the right or the effective discharge of the obligation in respect of the development concerned. The Act also contains provisions which encourage the resolution of disputes that may arise between parties by means of mediation rather than recourse to court proceedings.
More generally, statutory provisions governing the regulation of companies, including those concerning the memorandum and articles of association, the appointment and responsibilities of directors and requirements for submitting annual financial returns, are set out in the Companies Acts.