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Multi Unit Developments - Operation of OMC’s
All of the provisions of the Multi Unit Developments Act 2011 came into effect from 1 April 2011.
The Act provides a statutory framework for multi-unit developments and for the governance of the property management companies which own and manage the common and external areas in these developments. “Multi-unit development” means land having a building or buildings with not less than 5 residential units and where it is intended that amenities, facilities and services are to be shared. “Residential Unit” means a unit designed for use and occupation as a house, apartment, flat or other dwelling, and with self-contained facilities. It also includes a unit designed and used as a childcare facility where the facility is not intended to primarily share amenities, services and facilities with commercial units in the development.
There have been a number of further developments in relation to the legislation:
- The Companies Registration Office (CRO) have published a new Form H1-OMC for use to restore an owners management company (OMC) operating as such which has been dissolved within the last six years where the common areas or a part thereof of the multi unit development in respect of which the company was incorporated was vested in the company immediately prior to the date of the company’s dissolution.
- The CRO have also note the requirement under Section 14 of the Act in respect of the name of an owners management company that comes within the scope of the section. This requires that the words " Owners Management Company" be used within the company name and this may be abbreviated by the company in practice to "OMC".
- The CRO has also drawn attention to the fact that in the determination of any matter by the members of the company, one vote is attached to each residential unit in the multi unit development to which the company relates and that no other person has voting rights in respect of such a determination. Each vote is to be of equal value.
- New Circuit Court Rules set out procedures in respect of proceedings under the Multi Unit Developments Act 2011. The rules came into effect on 14 April 2011.