The Multi-Unit Developments Act 2011 was enacted on 24th January 2011 which imposes new obligations on Developers and Owner Management Companies. As business advisors and particularly Auditors, you are in a position to advise these entities on their new requirements under the Act.
Auditors will be signing off accounts for these entities over the next few months and will have to confirm that the entities have complied with the Act.
The main deadline imposed by the Act is the requirement for existing developers to transfer the common areas to the Owner Management Company by 1st October 2011. Failure to comply the developers will be in breach of the Act.
The Owner Management Company should also be ready for the new deadline by reviewing the Memorandum and Articles of Association and make the necessary amendments as providing for in the Act. These amendments include:-
- Redefining the Objects Clause & definitions as per the Act
- Providing for the use of Proxy Votes
- Automatic Membership of OMC
- The Merging of Beneficial & Legal Interests
- The new Voting Rights
- Rules regarding Directors Appointments
- Approving the Annual Reports
- Providing for the Annual Service Charge
- Approving House Rules
If the Memorandum and Articles must be amended to provide for the changes it must be approved by special resolution at an EGM of the members.
We can make sure that a Property Management Client meets their Company Secretarial requirements under the new MUDS Act for just €400.00
Call Kate on 059 9183888 today to get the ball rolling before it's too late.
For a detailed review of the act please download our Multi-Unit Developments Act 2011 Brochure.
To view OmniPro's article on the Multi-Unit Developments Act 2011 plese visit AccountingNet.ie