OMCs Part 2: Directors Report vs MUD Annual Report
This article is a part of our series on Owner Management Companies (Management Companies).
OMCs' Directors required to prepare Annual reportSection 17 of the Multi-Unit Development Act 2011 imposes the requirement on directors of Owner Management Companies to prepare and furnish to each member an annual report. Although many of the requirements will overlap with the Directors’ Report (prepared under Companies Act 1963-2013 and UK & Irish GAAP) included in the company’s annual statutory financial statements, these two reports are separate.
What to include in the MUD Annual Report?It is the directors’ responsibility to ensure that the company comply with the requirements prescribed in the Multi-Unit Development Act 2011. The MUD Annual Report should include:
- Statement of income and expenditure;
- Statement of assets and liabilities;
- Details with regards to the company’s sinking fund;
- Statement of the amount of annual service charge and basis of same in respect of the period the report covers;
- Statement of the projected or agreed annual service charge relating to the current period;
- Statement of any planned expenditure of a non-recurring nature (refurbishment etc);
- Statement of the insured value of the development and overview of the policy including premium paid;
- Statement setting out in general terms the fire safety equipment in place and arrangements for same;
- Statement fully disclosing any contracts entered into or in force between the owners’ management company and a director or shadow director (or connected person to these people) of the company.