Implications of the Multi-Unit Developments (MUD) Act 2011
The Multi-Unit Developments (MUD) Act 2011 was fully commenced into law on 1st April 2011. This piece of legislation contains 34 sections of new laws for apartment management companies to comply with as well as providing a comprehensive legislative framework for multi-unit developments.
As well as providing a legal framework for multi-unit developments, the ‘MUD’ Act will enable apartment owners to take control of common areas and the management of the complex for the benefit of all residents.
The main features of the act are as follows:
- Common areas’ must be transferred into what’s termed an ‘owners management company’ (OMC) by 30th September 2011
- Apartments/Units cannot be sold until the OMC has been established
- Voting rights are one unit one vote’ unless circuits court provides otherwise
- No Director can be appointed for more than 3 years
- Annual Meeting must be held and report distributed to all members
- OMC must establish a sinking fund for the refurbishment, improvement and non-recurring maintenance of the development. The developer is obliged to contribute for all unsold units
- OMC’s struck off 6 years or less are exempt from having to go the High Court for reinstatement
- The developer, OMC or any member can apply to the court for an order to enforce the act
As stated above, the Act requires that common areas are transferred into the OMC by 30th September 2011. The existing management company can be utilised for this purpose, once the Memorandum & Articles of Association are changed and the company name is changed to include the term ‘owners management company’
Company Bureau can assist you with this requirement by changing the name of the company to include the term ‘owners management company’ in the name, and also replace the Memorandum & Articles of Association with our ‘OMC’ version which has been drafted by a commercial law firm and is approved by the CRO.
For more information, please don’t hesitate to call (01) 646 1625 or complete our contact form.Contact us now for further details