Is MC AGM valid if it is held in a public place?

M

man

Guest
I own an apartment, the developer runs the management compay he has just called an AGM to be held in a hotel lobby, is this location for the meeting deem the AGM is null and void as it is basically in a bar/public area?

Also this guy takes about €8000 per year from owners to manage (badly) a corridor and a small common area could this be possible?

Please Help!!
Man.
 
If you are an owner you are entitled to the audited accounts and annual budget of the management company, this should answer your financial question.

Re location, not sure if it would render it null and void unless non management company members were to attend/contribute.

Have you considered standing as a director at the AGM? It's the best way to protect your investment.
 
Thank you Shesells. How would I go about standing as a director? I checked out this management company on the CRO website and it has directors names that are not any of the current owners. We've asked for audited accounts but we just get figures listed as esb insurancecleaning etc., I really dont trust this developer (no surprise there eh?) thanks again
 
You may find that the developer is entitled to retain control of the MC until all units are sold, and he might well be retained a unit or two for himself, thus retaining control for ever.
 
Can that happen?, ie. can the developer put a clause into peoples contracts that until he sells all apartments he is in complete control, and then he keeps one or two apartments out of 100 say, and he has complete control?...

That is unbelievable if true.. I'd have thought he would only have voting rights in proportion to the units he owns.. i.e 2 votes from 100 in the above example..

If he retains control can he choose what companies to use for cleaning etc?, even it they're totally un-economic and owned by his brother for example?

Politicions need to act on that if it is the case.. that would be ridiculous in my view.

Clearly these contracts need to be read carefully...
 
I am so glad our developer was dying to get rid in our case but yes, owners can't get control until all units are sold.

In theory a nomination for director needs to be in writing at least 4 days before the AGM but so far we have elected our directors from the floor of all our AGMs.
 
man said:
Thank you Shesells. How would I go about standing as a director? I checked out this management company on the CRO website and it has directors names that are not any of the current owners.
Click to expand...

Unfortunatly (for you) your Management Company will probably have a list of subscribers who are all friends or employees of the developer. Their votes will no doubt combine to outweigh anything that can come from the owners.

You can oust the developer, it's not easy if he doesn't want to go but it will take organisation, legal advise and perseverance. You need to have the other owners on side and take it on collectively.
 
JoeBallantin said:
Can that happen?, ie. can the developer put a clause into peoples contracts that until he sells all apartments he is in complete control, and then he keeps one or two apartments out of 100 say, and he has complete control?...

That is unbelievable if true.. I'd have thought he would only have voting rights in proportion to the units he owns.. i.e 2 votes from 100 in the above example..

If he retains control can he choose what companies to use for cleaning etc?, even it they're totally un-economic and owned by his brother for example?

Politicions need to act on that if it is the case.. that would be ridiculous in my view.

Clearly these contracts need to be read carefully...
Click to expand...
Yes indeed - this does happen. At the initial stage, it makes perfect sense for the developer to be in control, as there are few owners around.

Those buying in new developments have a great opportunity to negotiate a time limit on the developer's control - e.g. 12-18 months.
 
so just to be clear- as an owner I am not automatically a director, but legally I am entitled to see audited accounts of the company, as an owner?
 
man said:
so just to be clear- as an owner I am not automatically a director, but legally I am entitled to see audited accounts of the company, as an owner?
Click to expand...

Exactly right. As an owner, you are a member of the Management Company and entitled to see accounts, vote at meetings and ofcourse recieve notification of meetings. You are not effectively a decision maker, this is done by the Directors on behalf of the owners. You (usually) waive the right to all this if you default on your management fees. It will all be laid out in the Articles of Association/Memorandum that you can download from the CRO for a few bob, last accounts will be there too if things are being done properly.

To be a Director you would have to be voted on, the developer usually holds this position while he maintains an interest in the estate.

Two things I would suggest to you. First, get yourself a copy of Robert Gogans "The Essential Guide to Apartment Living in Ireland" and second, try and get a Residents Association together, these things are best tackled en masse.

Good Luck.
 
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