MA Director and OMC Development

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commelion

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Recently it has come to the attention of the OMC that the Director/Owner of the Managment Agent Company (MA) is also a Owner/Director of another ltd Company that is buying apartments in our complex with a view to renting/leasing them.

The Company is paying service charges into the OMC account and has one vote on the board as per 2011 SI but also has a significant amount of Apartments at the development. The MA company also takes money from the account for providing services as normal ect.

There is also an unwillingness to get value for money where contactors are concerned and the MA has there own preferred ones doing the work.

Having checked PSRA website our problem is hard to get correct info on, does the above seem right or is it a conflict of interest, the MA Director has never informed the board of this situation.

Regards OMC Member/Secretary
 
The members of the OMC have the right to appoint a chairman and directors to the board of the OMC. The board has the right to appoint whoever they want as managing agent.

Normally, each property has one vote - so if someone multiple properties, they will have multiple votes - no?

However, as it is a thankless task, not many members want to act as directors, so anyone who does, usually gets free rein to do what they want
 
jpd said:
The members of the OMC have the right to appoint a chairman and directors to the board of the OMC. The board has the right to appoint whoever they want as managing agent.

Normally, each property has one vote - so if someone multiple properties, they will have multiple votes - no?

However, as it is a thankless task, not many members want to act as directors, so anyone who does, usually gets free rein to do what they want
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Yes, this MA has been in place for 5 years now, no problem here except for reluctant to tender for value for money, just uses the same expensive contractors all the time.

Yes MUD 2011 act stipulated one member one vote, unless articles of association say other wise, this would be uncommon. So normally One member one vote.

Our issue here is lack of transparency, as I said the Director of the MA also has an interest as a member of the OMC (non director) through another company that he owns.

Regards OMC Member/Secretary
 
commelion said:
Our issue here is lack of transparency, as I said the Director of the MA also has an interest as a member of the OMC (non director) through another company that he owns.
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If the agent is not a board member he currently does not have a significant influence on the OMC side. If, as a board, you are not happy with the lack of transparency and unwillingness to tender why don't you look to appoint a new agent?

If the agent, using his OMC membership, makes moves to block this, it will at least solve the transparency issue.
 
commelion said:
Yes MUD 2011 act stipulated one member one vote, unless articles of association say other wise, this would be uncommon. So normally One member one vote.
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It's one vote per unit

14.— (1) The voting rights of members in an owners’ management company to which this section applies shall be structured in such a manner that in the determination of any matter by the members of the company one vote shall attach to each residential unit in a multi-unit development to which the owners’ management company relates, and that no other person has voting rights in respect of such determination.
 
jdwex said:
It's one vote per unit

14.— (1) The voting rights of members in an owners’ management company to which this section applies shall be structured in such a manner that in the determination of any matter by the members of the company one vote shall attach to each residential unit in a multi-unit development to which the owners’ management company relates, and that no other person has voting rights in respect of such determination.
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But our articles of association say I member one vote? OMC was formed before the MUD 2011 act, this changes things substantially, in our case as the MA through another company has a majority vote at any AGM ect.

Can a OMC do anything about this other than replace MA I guess...

Regards OMC Member/Secretary
 
Possible simple way of correcting this.

Introduce a condition in the contract for the MA to get quotes from two other companies for any expenditure heading that will total over €xxxx in a 12 months period.

And add that the OMC members may agree on one or more companies that should be approached.
 
peemac said:
Possible simple way of correcting this.

Introduce a condition in the contract for the MA to get quotes from two other companies for any expenditure heading that will total over €xxxx in a 12 months period.

And add that the OMC members may agree on one or more companies that should be approached.
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Yes I agree, this has been discussed with MA on numerous occasions with both BOA and at AGM's with members, there is a unwillingness to do so by the MA.

The more important question is the possibility of "conflict of interest" as laid out above?

Regards OMC Member
 
peemac said:
Possible simple way of correcting this.

Introduce a condition in the contract for the MA to get quotes from two other companies for any expenditure heading that will total over €xxxx in a 12 months period.
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Do that and you'll inevitably experience delays getting urgent and time sensitive works done.

The 3 quotes concept is a joke in any event, most common in the local authorities and public sector, where runway cost overruns are a daily occurrence.
 
llgon said:
Where is the conflict of interest? The MA isn't a member of the OMC board.
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Yes it turns out now that they are, The MA now actually owns a lot of property in the development and in turn has majority over smaller members, would like to know If this is allowed?
 
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commelion said:
Yes it turns out now that they are, The MA now actually owns a lot of property in the development and in turn has majority over smaller members, would like to know If this is allowed?
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You are secretary of the board and you didn't realise the individual you have concerns about was a board member?
 
llgon said:
You are secretary of the board and you didn't realise the individual you have concerns about was a board member?
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They are not a Board Member, they are a member of the MC (Management Company) as a significant owner (multiple units). They are also the MA (Management Agency) to the MC.
 
commelion said:
They are not a Board Member, they are a member of the MC (Management Company) as a significant owner (multiple units). They are also the MA (Management Agency) to the MC.
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This situation leaves the MA with majority control of the MC (votes at AGM/EGM) ect
 
I am now so confused about the situation, perhaps you can clarify

How many appartments?
How many owners?

The MA does not have any control over anything - it may be that the majority of the appts are owned by the controller of the MA but that is not the same thing
 
jpd said:
I am now so confused about the situation, perhaps you can clarify

How many appartments?
How many owners?

The MA does not have any control over anything - it may be that the majority of the appts are owned by the controller of the MA but that is not the same thing
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There are 23 apartments, the MA as of last count owns 12 of them, Mud act 2011 states one unit one vote.
 
I assume that Managing Agent (MA) does not own the appartments but rather the director or a company he controls/owns does.

As he owns or controls 12 of the 23, then yes he can more or less do what he likes as he has the majority of the votes. Looks like a lose/lose position for the other owners
 
Same company the MA, has two very similar names on accounts one crediting one Debiting, I've tried PSR website and housing agency for info but none seem to have a specific comment on COI, just a lack of transparency.
 
I presume PSR is Property Services Regulatory Authority
No idea what you mean by COI

Generally it is better to write out in full - most people here would not be aware of all the acronyms used by the various bodies
 
jpd said:
I presume PSR is Property Services Regulatory Authority
No idea what you mean by COI

Generally it is better to write out in full - most people here would not be aware of all the acronyms used by the various bodies
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COI is (Conflict of Interest)
 
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