Claims of corporate misconduct against property management companies are expected to treble this year, it was disclosed today.
At the publication of the 2006 annual report of the Office of the Director of Corporate Enforcement (ODCE), director Paul Appleby said his office has received hundreds of inquiries over property management companies and that the number of formal complaints lodged has "grown significantly."
In 2006, the ODCE received 26 formal complaints against property management companies but with 33 received to date this year, Mr Appleby said the office is expecting to see "a trebling" by the end of the year.
Mr Appleby said although many inquiries "have little or no relation to company law issues, the level of inquiry does show that there are serious problems in the area".
He said many property owners "are effectively unaware" of the management company and "what service charges are being used for".
In many cases, property owners are "not seeing the report on the accounts of the company, they're not being invited to the annual general meeting, they're not getting the opportunity to elect directors to represent them".
He said this was an area that was being looked at by the Government and that the ODCE is developing of a draft guidance on the governance of the area - which he said should be available later in the year.
In 2006, the office resolved over 1,000 cases and forced the repayment to companies of some €160 million in loans taken by directors, and the referral to the Revenue Commissioners of 86 large cases involving over €48 million.
The personal use by company directors and others of company assets was the default most reported by auditors in 2006.
Some 28 companies, company directors and other persons received convictions in the courts over breaches of the Companies Acts, and the ODCE cautioned 896 company directors over personal use of company assets over the legal limit.