Report on Multi-Unit Developments - Law Reform Commission

developments and (b) all multi-unit developments of 4 units or less, whether
already in existence or developed in the future.
3.101 The Commission has already indicated that it would not be possible,
from a constitutional perspective, to limit the property rights of those involved in
multi-unit developments to the extent of imposing all the recommendations
proposed in Part C to existing developments. In particular, the Commission
considers that, where the memorandum and articles of association of existing
owners‘ management companies have created weighted voting arrangements
which greatly favour a developer – which is not in itself prohibited under the
current company law code – it is not appropriate to interfere retrospectively with
these arrangements. This is so even though they do not appear, in the
Commission‘s view, to conform to good governance standards and as a result
the Commission has recommended that future owners‘ management
companies must operate on a ―one unit one vote‖ basis.
3.102 Apart from this particular aspect of existing multi-unit developments,
the Commission considers that the essential thrust of its other
recommendations for governance set out in Part C should be applied both to
existing multi-unit developments operating under a corporate structure and to
smaller developments, notably the developments of less than 5 units which are
generally operated under co-ownership arrangements. The Commission
considers that, for those operating under the existing company law code or the
statutory code for co-operatives, these other recommendations will not impose
any burden, other than requiring minimum standards, such as that an annual
meeting occur at a time and location that is convenient for unit owners, rather
than a time and location which is, as at present, sometimes chosen (perhaps
deliberately) because it is unsuited to unit owners. The Commission
acknowledges that, in setting out these minimum requirements, it must state
them in a manner that applies to all multi-unit ―undertakings‖, whether
incorporated or unincorporated. The Commission now turns to set out these
minimum requirements, based on the key elements set out in Part C.
3.103 On the basis of the general approach set out above, therefore, the
Commission has concluded that the following obligations should apply to (a)
existing multi-unit developments and (b) all multi-unit developments of 4 units or
less, whether already in existence or developed in the future.
3.104 In terms of general governance, the Commission recommends that
each multi-unit developments referred to in this Part must: (a) hold an annual
general meeting every calendar year and provide each unit owner at least 21
days notice of the annual general meeting; (b) hold the annual general meetings
within objectively reasonable proximity to the location of the multi-unit
development and at objectively reasonable times (unless otherwise agreed by a
majority of the members); (c) establish and maintain a scheme of annual
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