Report on Multi-Unit Developments - Law Reform Commission

system for economic activities 43 which is already used by the CRO on the
incorporation of a company. 44
3.34 The Commission recommends that the Companies Registration
Office facilitate NACE categorisation for owners‘ management companies on
incorporation.
(4) Incorporation of the owners’ management company
3.35 The Commission examines first the issue of when the owners‘
management company should be incorporated in the Companies Registration
Office (CRO). In the Commission‘s view, it is important that it is incorporated
before the completion of the conveyance of any unit within a multi-unit
development and that responsibility for incorporation should be a matter for the
developer. The Commission notes that, as a matter of current conveyancing
practice, the existence of an owners‘ management company is already a
prerequisite in order to satisfy the Law Society‘s standard requisitions on title for
multi-unit developments. 45
3.36 The Commission has also concluded that, in order to avoid any
ambiguity, the owners‘ management company should be incorporated at an
early stage of a development rather than (as happens currently in some cases)
just before conveyance of the first unit sold. In this respect, the Commission
considers that it is entirely appropriate that, during the early development phase
of a multi-unit development, the developer should have responsibility for
incorporation of the owners‘ management company and have effective control
over it. As units in the multi-unit development are sold, effective control will
begin to pass to the unit owners, who are also members of the owners‘
43
NACE is the European Community Classification System for Economic Activities
and is based on the International Standard Industrial Classification of all
Economic Activities, ISIC. See Regulation (EC) No.1893/2006 of 20 December
2006, establishing the statistical classification of economic activities NACE
Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as
certain EC Regulations on specific statistical domains, OJ No. L 393, 30
December 2006, p. 1. The 2006 EC Regulation requires EC Member States to
implement the NACE Revision 2 for statistical purposes.
44
The CRO requires those wishing to incorporate a company to use the NACE
classification system: see www.cro.ie/en/nace-code-classification.aspx. (LRC CP
42-2006) para 4.63.
45
See: Law Society of Ireland, Objections and Requisitions on Title.
69