Report on Multi-Unit Developments - Law Reform Commission

8.14 The Commission recommends that, in the case of smaller multiunit
developments, of less than 5 units, the appropriate legal structure is a coownership
arrangement. [Paragraph 3.18]
8.15 The Commission recommends that the Companies Registration
Office facilitate NACE categorisation for owners‘ management companies on
incorporation. [Paragraph 3.34]
8.16 The Commission recommends that the developer must
incorporate an owners‘ management company prior to any conveyance of a unit
in a multi-unit development. [Paragraph 3.38]
8.17 The Commission recommends that the costs (including preincorporation
costs) of incorporation of an owners‘ management company
should be borne by the developer. [Paragraph 3.39]
8.18 The Commission does not recommend the adoption of a statutory
definition of an owners‘ management company. [Paragraph 3.41]
8.19 The Commission recommends that owners‘ management companies
conduct their business under a statutory standardised name formula of ―‗X‘
Owners‘ Management Company (OMC) DAC‖. [Paragraph 3.43]
8.20 The Commission recommends that, during the development
stage, the objects of an owners‘ management company shall be to convey the
legal title of a unit in the multi-unit development to each unit purchaser and that
it shall not prevent or frustrate any such conveyance, and that it shall ensure, to
the extent required during that stage, the management and maintenance of the
common areas of the multi-unit development and otherwise to comply with the
obligations imposed on the company. The Commission also recommends that,
after the development stage, the objects of an owners‘ management company
shall be to ensure the management and maintenance of the common areas of
the multi-unit development and otherwise to comply with the obligations
imposed on the company. [Paragraph 3.46]
8.21 The Commission recommends that the memorandum of
association of an owners‘ management company should make provision for the
following:
the name of the company, ― X Owners‘ Management Company (OMC)
DAC‖;
an objects clause for the developments stage and the postdevelopment
stage on the basis of the recommendations to this effect
already made;
that each unit owner shall be a member of the company;
that each member of the company holds one vote of equal weight as
each other member ;
175