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Management Company to resign!!??

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  • 22-10-2010 9:25am
    #1
    Colonel_McCoy
    Registered Users Posts: 751 ✭✭✭


    Is it legal for A Management company to resign and stop managing an apartment block (which they built) without finding another company to take over?


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    The Management Company cannot "resign". The Management Company is a company made up of the property holders in the apartment block.

    The Management Agent is a 3rd Party company, employed by the management company to carry out the day-to-day tasks of the company. And they can resign if they wish. The Board of the management company will have to meet to find and appoint a new management agent, or take over the role themselves.

    Really need more information here. The builder usually remains in control of the management company until the development is done and all apartments are sold. Some builders will also take over the role of management agent in this regard too. As the board is usually made up of members of the building company, they are free to step down from the board and resign as management agents. The management company (i.e. the propertyholders) then has to call an EGM to appoint a new board and discuss getting a new management agent.


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    #3
    Colonel_McCoy
    Registered Users Posts: 751 ✭✭✭Colonel_McCoy


    The builder took the role as Management Company and they are looking to resign without appointing anybody.


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    #4
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    So, the directors are resigning. Very different.

    Now, you need to elect a minimum of 2 directors from the members of the management company (unit owners). This will give you direct control of how your money is spent and how your development is managed.

    You need to be clear on management company, management agent, and then the directors of same.


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    #5
    mathepac
    Banned (with Prison Access) Posts: 4,991 ✭✭✭mathepac


    If the current directors resign before new directors are appointed, they may be in breach of company law. They need to call an AGM / EGM and inform the members of the company (the property owners in the development) in order to allow for continuity and compliance.

    Is the management company being struck off by the DOCE / Revenue for any reason?


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    #6
    Colonel_McCoy
    Registered Users Posts: 751 ✭✭✭Colonel_McCoy


    No they just got fed up of collecting money from the owners and complaints about their lack of work i.e. cutting grass, general maintenance. They manage a couple of other sites and do the less than minimum there too.


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    #7
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    That sounds like the management agent has resigned.


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    #8
    whippet
    Registered Users Posts: 7,685 ✭✭✭whippet


    Colonel_McCoy wrote: »
    No they just got fed up of collecting money from the owners and complaints about their lack of work i.e. cutting grass, general maintenance. They manage a couple of other sites and do the less than minimum there too.

    sound like the contracted Managment Agent (employed by the Mgt Company) have resigned as they are unable to do the work expected of them due to problems getting people to pay.

    There is such a catch 22 with Managment Companies, people won't pay their dues which makes it difficult for the work to be done and then use the lack of work done as an excuse not to pay.


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