5 minute read
The implications for
Commercial Leases
By Simon Wood, Barrister in the Dispute Resolution Department at Hart Brown
As well as various financial measures the Government has also sought to alleviate the problems of businesses during the current lockdown with specific legislation relating to commercial leases as set out in the Coronavirus Act 2020 (“the Act”).
Under section 82 of the Act a landlord may not enforce a right of re-entry or forfeiture under a relevant business tenancy for non-payment of rent by action or otherwise between now and 30 June 2020. This period may be extended.
In particular, this precludes the landlord from peaceably re-entering the property during this period; re-entry is a draconian remedy which can cause considerable problems for tenants who are unable to pay their rent within a reasonable period as they are immediately shut out of the property. Their only recourse is to apply to the court for relief from forfeiture.
The Act applies to all tenancies to which part 2 of the Landlord & Tenant Act 1954 applies. This will include contracted out tenancies as, of course, the 1954 Act does still apply to them. Where forfeiture proceedings have commenced before the Act came into force, any order for possession must ensure that the tenant does not have to give up possession until after the end of the relevant period.
It is very important to note that the Act does not provide a rent holiday. The tenant’s obligation to pay the rent on the due date still continues; it is just that any breach cannot be enforced. Accordingly at the end of the relevant period, the whole of the rent which has fallen due during that time will still be payable, and any failure to pay will then be subject to re-entry or forfeiture. vides that no conduct by or on behalf of a landlord, other than an express waiver in writing, will be regarded as waiving a right of re-entry. This obviates the difficulties landlords often face in inadvertently waiving the right to forfeit once the right has arisen.
Moreover, the Act only applies to non-payment of rent. Forfeiture for other breaches of the lease remains unaffected. However, there will clearly be issues with court hearings during the current lockdown period.
Accordingly, if a tenant foresees continuing difficulties over a longer period because of damage to their business, they would be advised to seek agreement with the landlord to either reduce the rent or obtain a rent holiday while the current restrictions remain in force.
By the same token landlords may consider it sensible to alleviate the problems of their tenants if they are not to be left with a significant void period if the tenant becomes insolvent.
It is also worth noting that the Act pro
If you require any further assistance with the new provisions under the Act and/or with negotiations for new temporary arrangements, please contact us on 01483 887766 or email us.
New Look Board for RSM
Local partner Zoë Rudling promoted to the RSM UK board
RSM UK announces the appointment of a new board, following its earlier announcement of the firm’s CEO, Rob Donaldson. Seven members of a new look board take up their roles alongside the CEO with immediate effect, including local partner Zoë Rudling.
The RSM Gatwick-based partner has been selected to represent a critical part of the firm’s shareholder interests. As a key part of the firm’s future direction and governance, Zoe will represent the interests of the most recently promoted and recruited partners at the firm.
As a homegrown talent with more than 15 years at RSM, and having been made partner four years ago, Donaldson commented that ‘Zoë has the insight and connections to help us shape our future leaders.’
Other new board members include Victoria Kirkhope in her capacity as HR and
Zoë Rudling
development director, with responsibility for people; David Punt as head of ethics and group compliance; Howard Freedman representing the interests of all past and present partners within the firm’s shareholding group; Simon Hart representing RSM’s international interests and Andrew Westbrook continues in his position as acting CFO. These imple, our clients and the communities in which we operate. We will now turn our attention to the wider senior leadership team, the regional teams, and the service lines and sectors that they serve. We look forward to making further announcements in the coming days.
portant new appointments complete the overall selection of RSM’s board.
Rob Donaldson, CEO of RSM UK, said: ‘I’m delighted to announce my new board of directors. These important roles, and the talented individuals I have chosen to come with me on this exciting new journey, represent the basis upon which RSM will continue to grow and flourish as a successful business. I believe this combined group offer the wealth of experience and diversity of thought to take advantage of the many opportunities that lie ahead.
‘Navigating the business through the current market conditions remains our absolute priority, supporting the wellbeing of our people, providing insight and advice for our clients and protecting the business to realise our future opportunities. For this reason, we are moving quickly to appoint these key roles that will be important to ensure swift and effective progress for our peochoice adviser to middle market leaders globally, our breadth of service and sector line capabilities, coupled with our unrivalled regional presence, make the prospect of leading this firm alongside my board colleagues a hugely exciting prospect.’
‘Looking to the future, as the first
Zoë provides assurance and business advisory services to a wide range of owner-managed businesses, private equity backed businesses, large private groups and International groups. She has a broad range of experience in a number of sectors including recruitment, technology and transport and logistics; she has significant experience in the engineering and manufacturing sector and is involved in the firm’s national manufacturing focus group.
www.rsmuk.com
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