Dissolved Management Companies – A More Efficient Approach?

Insolvency practitioners often encounter difficulties when trying to sell properties in residential developments because an original management company has been struck off the Register of Companies. The standard approach can be laborious and costly. A more cost efficient alternative is often available.

Insolvency practitioners attempting to sell unsold units in developments frequently encounter difficulties where the owners' management company has been struck off the Register of Companies, usually for failure to file annual returns.

Typically, such dissolved management companies were incorporated before the commencement of the Multi-Unit Developments Act 2011 (the "MUD Act"), and do not comply with its provisions.¹