Report on Multi-Unit Developments - Law Reform Commission

3.67 The Commission recommends that the articles of association for an
owners‟ management company should specify an alternative requirement in
terms of the information to be included in the directors‟ report in the annual
return for owners‟ management companies.
3.68 In the Consultation Paper, the Commission also provisionally
recommended that directors‘ reports should include a list of the assets of the
owners‘ management company, its insurance details and whether the
development is fully compliant with fire and safety legislation. 66 The
Commission confirms that recommendation in this <strong>Report</strong>. The Commission
considers that it is particularly important from the perspective of countering the
understanding deficit and also in terms of transparency generally. This
information is also important to potential purchasers of units in the development.
3.69 The Commission recommends that the annual directors‟ report for an
owners‟ management company should include a list of its assets, its insurance
details, and whether the development is fully compliant with fire and safety
legislation.
3.70 To sum up the Commission‘s approach in this area, the form and
content of the annual returns of an owners‘ management company should, the
Commission recommends, therefore include the following:
the accounts of the company in the form of a statement of income and
expenditure,
a statement of the annual service charge or charges,
a statement of the current level of the building investment fund and the
annual contribution to it,
a statement of any planned expenditure for the following calendar year,
a statement of the assets of the company,
a statement of the content of and extent of cover provided by any
insurance policy held by the company, and
the fire safety certificate issued under the Building Control Acts 1990
and 2007 for the multi-unit development.
3.71 The Commission recommends that the form and content of the
annual returns of an owners‟ management company should include the
following:
the accounts of the company in the form of a statement of income and
expenditure,
a statement of the annual service charge or charges,
a statement of the current level of the building investment fund and the
annual contribution to it,
66
Op cit, para 4.49.
79