Membership of a Management Company
When you buy your unit and receive your membership certificate you legally become a member of the property management company.
The Membership or Share Certificate is a key legal document which your solicitor should obtain for you. It confirms that you as the owner of a unit are, under the terms of your purchase agreement, a member of the management company.
Day-to-day running
As a corporate body, the management company owns the freehold of the common areas of the development. The company, on behalf of the owners, is the legal owner of these areas, and the owners share collective responsibility for them.
Membership of the management company should allow you to have a say in how the common areas are managed. But you should not personally need to be involved in the day-to-day running of the company’s affairs or put your name to contracts entered into by the company. Companies generally appoint directors to do this work.
Memorandum and Articles of Association
The Memorandum and Articles of Association is an important document which every company must have. It is important as it sets out how the company will be run, and what rights you as a member will have.
The Memorandum and Articles of Association must be open to inspection to every member free of charge. It must also be submitted to the Companies Registration Office where the public may view it.
Your rights as a member
The use of a company structure means that members have certain rights under company law, in particular the Companies Acts. All company members are entitled to:
- Adequate notification of the company's general meetings
- Timely information about the company’s operations and finances
- Participate and vote in the annual general meeting (AGM)
You are also entitled to inspect and obtain copies of:
- The company's Memorandum and Articles of Association
- Minutes of general meetings of the company and resolutions
- Various registers kept by the company, including the register of members and the register of directors and secretaries and their interests
- Periodic financial statements, directors’ reports and auditors’ reports about the company's financial affairs
The company must hold a general meeting at least once a year, and all members must be invited to attend. It must also file an annual return with the Companies Registration Office; this must contain certain fundamental information about the company and its financial activities.
Service charges
Members of the management company are entitled to information from the company to substantiate the level at which the rate is being set.
The company should provide you with as much information as possible on how last year's budget was spent, and how it has calculated the charge for the forthcoming year.
The directors should also consider providing detailed income and expenditure information in relation to service charges.
Learn more
Read about how management companies should operate
Download our guide summarising the typical categories of company income and expenditure which can be adopted by a management company
How well are you doing?
Answer this simple question to see how well you understand this section.
Question: If you pay service charges to a property management company, are you allowed to attend its AGM?
Answer A: Yes, because you are a member
Answer B: No, because you are not a director
Answer C: Don't know