Director of Management Company stalling sales

April 2022

https://www.boards.ie/discussion/comment/119185350#Comment_119185350

We have questioned this, but we’re told he can still be a director

carfinder

https://www.boards.ie/discussion/comment/119185428#Comment_119185428

Hi April 2022, if you wish, you can PM me with the name of the management company and I'll review their memorandum and articles i.e. constitution and annual return and let you know what the requirements are for a director in that company

Caranica

https://www.boards.ie/discussion/comment/119185428#Comment_119185428

I think you need a better solicitor

April 2022

https://www.boards.ie/discussion/comment/119185543#Comment_119185543

Thank you so much, will do that now

April 2022

https://www.boards.ie/discussion/comment/119185543#Comment_119185543

I’m not sure how this works with messaging. Ms I able to message you even with so little posts?

Dav010

https://www.boards.ie/discussion/comment/119185591#Comment_119185591

https://www.boards.ie/discussion/comment/119185350#Comment_119185350

This is incorrect.

”A property owner in an estate with an OMC is automatically made a member of the OMC. Directors of an OMC are usually, but not required to be, members of the OMC.”

https://www.charteredaccountants.ie/docs/default-source/technical-documents/governance/omc-director-governance-guide-may-2021.pdf

carfinder

An interesting excerpt from the document link above:

Regulation 18 of the Property Services (Regulation) Act 2011 (Minimum Standards) Regulations 2020 prohibits a property management agent from being a director of an OMC to which the agent provides services, unless the agent is also a property owner in the estate.

i think this is what some posters have alluded to and appears to be relevant to the OP's situation as it appears that the problematic director is a propwrty management agent and a director but not a property owner - a breach of regulation 18

Dav010

https://www.boards.ie/discussion/comment/119185802#Comment_119185802

I agree, the OP needs to clarify if the issue is with a Director or Managing Agent.

I kinda get what you are saying, but I’m not sure it applies here, but I could be wrong because the op seems to be making lots of claims/allegations which appear contradictory. The “Director” in question no longer owns a property, but can still be a Director as Directors are not required to be members. He also can be a managing agent, but not a Director if that is what he is, by virtue of the fact that he is not an owner. Managing Agents are usually estate agents/auctioneers in my experience and are paid by the OMC, whereas Directors are not, but the op said he is not an EA.

So the op is probably receiving good advice from his/her solicitor in relation to the Directors legitimacy and how it relates to the question of ownership.

April 2022

Just to clarify this person has put himself in this position of “power” since 2010. I actually used to think he was a maintenance person!

He has been a director since 2010, an owner since 2007. He sold his property (without any issues of course) in January of this year. He is still involved in this complex and seems to be earning a living carrying out maintenance work, cleaning, gardening. He makes all the decisions himself down you the last flower pot. Before AGM’s he gathers proxies from the older residents who think he’s wonderful and just bored himself back in as director.

None of these older residents care what he does, as it doesn’t affect them. I think I mentioned this before, but the three separate owners have court cases pending against him currently.

Dav010

https://www.boards.ie/discussion/comment/119186064#Comment_119186064

Okay, so he is a Director, not a managing agent, so does not have to be an owner.

Three separate owners have court cases pending against the OMC (EGM in May to discuss) in all likelihood, rather than him personally, it is therefore not surprising that the OMC members, including you, have legal bills.

Just in relation to proxy votes, if the constitution allows it, nothing wrong there, and as long as he declares to the members that he is doing the maintenance work for a fee, that is allowed. What wouldn’t be allowed is for a contract to be awarded to a party which a Director has an interest in, without it being declared. He may well be providing the services for less than an outside contractor and as long as he has the support of the majority of members, there may be little you can do.

You mentioned you are selling to a Government Body, is there a possibility that your fellow owners may be trying to block this sale?

10-10-20

Sounds horrific.

What progress has been made in relation to the topics suggested above such as an EGM and ousting the director in lieu of him not being a property owner?

April 2022

https://www.boards.ie/discussion/comment/119186127#Comment_119186127

No, it isn’t known who the purchaser is. This information is not common knowledge. This government body have already purchased two apartments in my block. It was a decision I came to, as I felt this director would bully any new owners buying. He won’t be able to bully a huge institution although he has threatened them already.

April 2022

https://www.boards.ie/discussion/comment/119186330#Comment_119186330

It is impossible to set up an EGM as nobody wants to get involved unless there is an impact on them personally. At the last EGM in May only 15 people turned up

eusap

Hand him a cheque, get the letter to say all clear, cancel cheque

April 2022

https://www.boards.ie/discussion/comment/119200497#Comment_119200497

I would be very tempted to do this! We’ve decided no to let him blackmail us. If he causes the sale to fall through, he can pay the solicitor’s and agent’s fees, as well as any mortgage repayments until the place is sold!! We are currently paying two mortgages and the strain is beginning to show at this stage. How this person can jeopardise the livelihoods of other people baffles me

Dav010

https://www.boards.ie/discussion/comment/119200585#Comment_119200585

He really won’t.

April 2022

https://www.boards.ie/discussion/comment/119200945#Comment_119200945

I’m not sure what you mean

Dav010

https://www.boards.ie/discussion/comment/119201075#Comment_119201075

He won’t pay your solicitors/agents fees nor mortgage until it is sold.

If he has a mandate from the other owners to be a Director of the OMC and you have outstanding fees which must be paid to the OMC before the letter can be issued, I’m not sure why you think he would be liable for any costs to you. What seems to be in dispute is whether these fees are actually owed. Given the fact that there are three legal cases pending, which were initiated whilst you were an owner, it is understandable that some legal fees would be due from members, so far you haven’t given any detail of what was discussed/decided on at the May EGM in relation to those legal issues.

How much is the delay costing you in monthly mortgage repayments, how long more will it take to settle this even if you take a court case? Now compare that to what the outstanding OMC fee is. You can either take a principled approach, or you can be objective, get the letter, sell the property, then let your solicitor chase the OMC for any overpayment.

April 2022

https://www.boards.ie/discussion/comment/119201292#Comment_119201292

Ok, thanks for that

eusap

The only real option is to pay and be done with the place. After the house is sold you can talk to a solicitor about recovering money or report to the guards for Fraud or Elder abuse. I would also send a letter to all residents in the development to let them know this can happen to them if they sell

spaceHopper

https://www.boards.ie/discussion/comment/119200585#Comment_119200585

You have to do what is best for you here, it the medium term it will cost you more money and you can try to go after him but it would be a fool's errand. Pay the money get shot of the apartment, and mortgage costs, be free of it.

Then get your solicitor to draft to each of the residents outlining the demands how the sale was frustrated and delayed, that shortly legal papers will be filed seeking redress. Watch the sh1t hit the fan after that. Make a complaint to the companies office against the company and it's auditors. Write to the auditors pointing out that the director is legally barred from being a director.....

April 2022

https://www.boards.ie/discussion/comment/119201973#Comment_119201973

https://www.boards.ie/discussion/comment/119201383#Comment_119201383

He got rid of the accounts and auditor that were in place for the past 25 years and his friend acting as accountant and auditor. The company address also has the same address as his accountant friend

spaceHopper

https://www.boards.ie/discussion/comment/119202068#Comment_119202068

All the same pay up get free of it then later make a complaint for the companies office or Gardi for Fraud.

Dav010

https://www.boards.ie/discussion/comment/119202068#Comment_119202068

April, he can’t have done this in an OMC without the support of members. If he has that support, not much you can do. Owner apathy is the ruination of OMCs, people don’t attend, then complain about the decisions made.

April 2022

https://www.boards.ie/discussion/comment/119202416#Comment_119202416

Dav, it’s very difficult to even begin to explain what this place is like. He blocked us from attending in December 2020 (wouldn’t send us a link) and would only let my husband attend in December 2021. The reason he hates us is that we questioned outgoings on the accounts €20,000 going to him under a company name, which isn’t licensed). Since then when we receive our annual invoice, he adds other amounts in to them and when you question this he adds 15% interest on etc etc. A fair few of the apartments are now vacant, as he terrorised the tenants so much. I can’t even begin to get into what he has done, as I would be here all night. Our solicitor has said that if the sale falls through, he will be sued for all costs, this is not just an idea I came up with myself.

macvin

You and the others that are taking legal action need to create and sign a joint letter. Outline briefly the grievances and the fact that legal action will cost in the region of €10-€15,000 per case should it proceed to court.

These costs would have to be paid by the management company - effectively paid by you the other occupants. It will work out at a minimum of €xxxx per apartment.

Then add - a change to management would see significant savings to all occupiers of several hundred euro a year.

Then call an egm with the proposal that you switch to xxx management - and have a quote from a reputable management company.

With so many price rises, now is the time to get it changed

April 2022

Does anyone know if this bill could be offset against our CGT bill?

Mrs OBumble

https://www.boards.ie/discussion/comment/119202696#Comment_119202696

If you have an invoice for it, then likely yes. It's part of the cost of doing the sale

Lofidelity

What do the other directors and management agents have to say about this person?

Has he a job and the gardening etc is a tax free nixer?

He can't block you from the Agm either, the management agent organises this and sends the email link.

April 2022

https://www.boards.ie/discussion/comment/119202941#Comment_119202941

The other directors obey him, they have no say. He organises everything there including the links for the AGM. The older residents there think he’s fantastic. He needs them in his side to get votes. Unfortunately, there is no management agent, just this individual.

He does some cleaning and gardening. He goes out of his way to be horrible to people, he’s absolutely hideous. He’s demanding €10,000 from another owner, but said he would drop this if he rejoined the committee and dropped his case against him!!