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Management Company directors

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  • 10-11-2006 2:22pm
    #1
    John Wine
    Closed Accounts Posts: 134 ✭✭


    Hi,
    In a new appartment complex, the developers are the directors the management company and want to resign.
    What happens if none of the residents' wish to become directors can the developers still resign?
    What happens then if the developers remain directors for the next 50 years?


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    #2
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    By law, the directors must step down.

    Someone needs to become a director, and you need a very minimum of 2.

    Why would no one want to be a director? It gives you some more control over the management agent.

    If no one wants to become a director, then you are all in a very difficult legal situation.


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    #3
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    When you bought your apartment, you weren't really buying property, you were buying membership in a community. If no one is prepared to work to sustain the community, then there is going to be a big problem. It's not just a legal problem, it's bigger than that.

    You could appoint external NEDs (non-executive directors). This would cost you about 30,000 or 40,000 euros a year, I suppose. Would be a chunky addon to the service charge, but if nobody has the time maybe this is the thing to do. You would probably need to pass a special resolution to do this.

    If you don't appoint directors, the company will ultimately get struck off by the director of corporate enforcement and you will not be able to sell your property. At the same time your development to degenerate and the charge to ramp up.

    a.


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