The Multi Unit Developments Act and CRO Forms
by Angela McHugh
Since 1st April 2011, the Multi Unit Developments Act 2011 (‘the Act’) has been in full force. We have discussed in previous articles the implications of this Act for developers, owners’ management companies (OMC) and property owners. Chief among these is that the Common Areas of a partly or fully completed Multi Unit Development (MUD) must be transferred to the relevant OMC within six months of the coming into operation of this legislation.
There are a number of questions that must be asked in relation to the Transfer of the Common Areas;
- Has the Deed of Transfer of the Common Areas been executed by all parties?
- Has control of the OMC transferred from the developer to the members of the OMC? and
- Has the OMC been struck off the Company Register?
Regardless of whether or not a Deed of Transfer of the Common Areas has been executed, it is vital to ensure that the OMC has not been struck off. In many cases the OMC is still under the control of the developer and no new directors drawn from the pool of owners of the properties within the MUD have been appointed. Therefore the owners are relying on the developer to maintain the OMC on the Company Register, to arrange for the transfer of ownership of the OMC to the members and to arrange to transfer the common areas to the OMC.
The Act has made provision for the restoration of an OMC which has been struck off the Company Register. Now there is an extended period of 6 years (as opposed to 1 year) within which to act.
Different procedures apply depending on who is making the application and how much time has elapsed since the OMC was dissolved.
If less than 12 months has elapsed since striking off and the application for restitution is being made by a member of the OMC, the Deed of Transfer of the Common Areas must be executed and a certified copy of it together with a solicitors/accountants certificate must be lodged with a Form H1-OMC.
If less than 12 months has elapsed and the application for restitution is being made by a director of the OMC, the standard Form H1 and the documents required under it are all that are required. There is no requirement in this instance for the Deed of Transfer to be executed.
If more than 12 months and less than 6 years has elapsed since the OMC was struck off, the Form H1-OMC procedure can still be used but only if the Deed of Transfer of the Common Areas was signed and dated prior to the date of the OMC being struck off.
If no such deed of transfer can be produced, the normal procedures for the restitution of a struck off company apply, namely an application must be made to the High Court and the consent of the Minister of Finance must be obtained. This is both costly and time consuming.
In all cases, the OMC must file all outstanding annual returns and accounts, in order to be restored to the Company Register.
If you require any further information in relation to this please contact a member of our Commercial Property or Corporate Law Departments.