# MUDB - Next Steps



## Lyndan (20 Jul 2011)

Hi All,

Now that the Multiunit Development Bill is in place and I believe the commencement starts 1st Oct, what are the next steps for apartment holders?

So the developer/director has to step down but how do you go about making this happen?

Anyone any details?

Thanks
Lynn


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## RonanC (20 Jul 2011)

The Multi-Unit Developments Act 2011 has been commenced in its entirety since 1st April. 

http://www.irishstatutebook.ie/2011/en/act/pub/0002/index.html


See here for more info


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## Lyndan (20 Jul 2011)

I thought it was 6 months after the bill was commenced that it comes into effect.

Either way thanks for the links...I noticed it has a section on long term directors and how they must be gone 3 years after the bill - 1st April 2014

Does this technically mean a developer can stay on till this date?

I am just wondering how as a member of a management company do we get our director who is the developer to stand down...is an EGM still needed or does it just happen?


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## zenga (20 Jul 2011)

There are many new rules set out in MUD Bill

1. There is now a requirement to call a general meeting to agree the budget before the service charge is decided for the coming year
2. Directors can be elected for a maximum term of 3 years, then they must resign and look for re election at the AGM.
3. There is a requirement to include the basis of how the service charge is calculated and this must be put on all financial documentation
4. All Directors have their names and confirmation of any service charges outstanding, under the MUD act no owner with outstanding service charges can serve as a director
5. The common area's must be handed over by the developer to the property management company within 6 months of the MUD Bill being enacted (30th Sept 2011)


Whilst this does mean that the developer can be an acting director until 1st April 2014, it is highly unlikely that this will happen, most developers were on the board as they had responsibility for the common areas etc, generally once this is handed over they will step aside.

If you want to become involved in the management company I would urge you to attend the AGM, There will be people only too delighted to see another pro active person involved.

If you wish to know any further information feel free to pm me.


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## Pondering (26 Jul 2011)

zenga said:


> There are many new rules set out in MUD Bill
> 4. All Directors have their names and confirmation of any service charges outstanding, under the MUD act no owner with outstanding service charges can serve as a director



 Hi Zenga,

  Where in the MUD Act is this? Is this not in the articles of association of the company? Can’t find it in the act.

  Reason I’m asking is I have a query from a vexatious member who is in arrears asking if he can put himself forward as director. Answer I gave was I was unaware of any reason why he couldn’t put himself forward but because only paid up members can vote at an EGM/AGM (citing Appendix IV "Table C" - Regulation 23 of the Company Law Handbook) they would be unlikely to vote him in.

  If you have the specifics on where it says he is in fact disqualified anyway that would be great. I mean, it makes obvious sense but I just would like to see it in writing if anyone can point me to it.

  Thanks


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## zenga (27 Jul 2011)

Hi Pondering,

Il have to take a look at the report we recieved again as im not a solicitor but I have been informed by one that conducted the report for us that this is the case.

If and when I get the extract il post it here for you


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## purpeller (27 Jul 2011)

Pondering,

Does your lease not already prevent this person from doing that?  It's a fairly standard clause in a lease that you must be a paid up to date member to vote or attend an AGM.  If s/he can't come, then s/he can't be nominated and elected.


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## Pondering (27 Jul 2011)

Cheers guys. The lease... of course... I'll check the lease. Sometimes it's staring you in the face and all that .


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## Pondering (27 Jul 2011)

Back again... Should have remembered this!!!

 There’s nothing in the lease about voting rights. Because what I am about to print below renders any discussion of membership, voting rights etc. in the lease completely pointless. A clause in our lease effectively prevented us being members of the management company. 

  See the following excerpt from “Report on Apartment Management” by Evelyn Hanlon of DCC to the Chairman and Members of the Housing Social and Community Affairs Strategic Policy Committee back in 2009. This “Clause H” is exactly as it is outlined here in our leases. We are not this development in Dublin 17 mentioned here. So it was not just in our place this happened.

  Anyway… because of this there is damn all in our leases on voting rights or who could attend the AGM. It may be in this “Management Company Agreement” which we are probably now entitled to see as we are now members thanks to MUD.



> From Page 10 of the Report on Apartment Management by Evelyn Hanlon.
> 
> [FONT=&quot]Example 1[/FONT]
> 
> ...


P.S. This report is still available out there in the Google  if you type in "Clause H. Membership of the Management Company" and hit "Pages from Ireland" it is the first hit on Andrew Montague's website (he's the new mayor right?). I can't post the link as I am too green here and don't have 15 posts yet .


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