Director of a Managment Company

godtabh

If you become a director of a management company can you be liable for an losses/actions taken against the company?

As per the norm our management agent is a load of crap and as a way to have more influence it maybe possible to elect a resident as a director.

If that is possible what would that person be leaving themselves open to?

stovelid

Is the estate finished? The builders are usually the directors until then.

If it's finished and they didn't hand over to the residents, then they probably still are.

When the estate is handed over, all residents (who have paid fees) can vote in a board of directors.

You should note that all residents comprise the management company; the management agent are merely hired by the company to run the estate on behalf of the company. If you are running it yourself, you could fire the agents and either get new ones in or do everything yourselves.

I don't really know about legal issues, but AFAIK, the management company is a bona fide registered company, so it probably is up to the directors to ensure that you file accounts, are solvent etc.

Victor

kearnsr wrote: »

If you become a director of a management company can you be liable for an losses/actions taken against the company?

There are responsibilities yes, especially if you trade recklessly.

You need to get up to speed if you are to take on the role.

Cantab.

Victor wrote: »

There are responsibilities yes, especially if you trade recklessly.

You need to get up to speed if you are to take on the role.

Never fear! There are always plenty of those types out to establish their own empires.

You might want to get the other residents to pay for a Directors' liability insurance policy. Getting 'em to pay out is another kettle of fish altogether.

godtabh

What experience would you need then to make sure things are done right or even just above board?

What's expected from the directors? As far as I can see they've very little to do on a day to day bases

Victor

Directors would meet as a board at least several times a year and perhaps as often as weekly in some companies. They give direction to the MA on what to do on a day to day basis. The MA may seek direction from time to time on particular points from a managing director.

How Strange

Victor wrote: »

Directors would meet as a board at least several times a year and perhaps as often as weekly in some companies. They give direction to the MA on what to do on a day to day basis. The MA may seek direction from time to time on particular points from a managing director.

Exactly, a good management company will lead and direct a managing agent not the other way around which is quite often the case.

In my former life as a property manager, the best MC's were the one's that met me regularly, went through finances, who needed to be paid, what owners hadn't paid, instructed me to take legal action against overdue owners, managed renovation projects etc.

There are legal obligations on a director of a MC but the obligations are common sense for the most part i.e. you can't defraud the company, you have to file statutory with the CRO in good time.

godtabh

I'm considering doing it but I want to try and get some info on what I would be doing and what responsibilities I would have before I commit myself to anything

Cantab.

kearnsr wrote: »

I'm considering doing it but I want to try and get some info on what I would be doing and what responsibilities I would have before I commit myself to anything

First off, you're mad.

If you're feeling civicly minded, you'd be better off volunteering for a charity.

If you do feel the urge to go ahead:

- make sure you get everyone to pay your directors' insurance
- make sure you're not very busy around October when the accounts are due
- make sure you have a good relationship with a good accountant who you trust and won't screw you over
- delegate as much work as possible
- don't deal with anyone on the phone/in corridor/etc. -- make 'em write you a letter. Better still: install a letter box in a communal area that you check twice a week. Don't get into emails.

bobbysands81

kearnsr wrote: »

I'm considering doing it but I want to try and get some info on what I would be doing and what responsibilities I would have before I commit myself to anything

Has your builder handed over the running of the estate to the unit owners yet? You guys will eventually get control of the running of the estate and will therefore have to appoint your own Directors, this should not be undertaken lightly and it may even have knock-on effects in other business dealings which might be nothing to do with the Management Co.

Here's a few helpful links/info...

Some stuff from the Office of the Director of Corporate Enforcement on Management Co's:
http://www.odce.ie/en/media_press_releases_article.aspx?article=773f6d99-bdf1-413e-b21e-a96f73696327

Another link to their website and what a director of a company should do - this should be quite relevant to you:
http://www.odce.ie/en/company_companies_booklets.aspx

Some background info on Management Companies from the National Consumer Agency:
http://www.consumerconnect.ie/eng/Hot_Topics/Campaigns/Property_Management_Companies/

I'd recommend a book from a fella called Robert Gogan - The Essential Guide to Apartment Living in Ireland, a near flawless and excellent book. Eason's did stock it.

I'd also keep an eye out for further reports due from both the National Consumer's Agency and the Law Reform Commission, both due this month. Both should provide you with a decent bit of knowledge in the area.

Not been posting in this sub-forum long but there seems to be a good few knowledgable folk here who I'm sure will help any way they can with queries etc... so ask away.

Paulw

I've just be re-elected as a director of our management company. We actually removed the developer as directors at an EGM, and elected ourselves as directors.

There are legal duties and responsibilities, without doubt.

BUT, it is really not that major a deal. You just ensure work is done, accounts are properly maintained and that they are audited by an independent accountant at the end of the year.

If you've questions, feel free to PM me.

We have a very good MA, and I deal with him regularly. Sometimes it can be as little as once a month, and at other times it can be twice a week. It really depends on the work going on. We're not getting to a stage where things just tick over, and there's not much for the directors to do/decide.

I have dealt in person with queries from shareholders, I've deal with them on the phone, and dealt with others by email. Do what suits you.

The most important thing - hire a good, reliable and responsible management agent. They will take so much work away from you. Read as much as you can about management companies, management agents, company law, director's responsibilities etc.

Don't be intimidated. It's not an occupation. It can anything from a few hours a week, to an hour a month. With proper control and direction, the MA will deal with the vast majority of stuff.