Coronavirus - Government measures in key jurisdictions - Flipbook - Page 80
The Netherlands
The bill has now been adopted by the House of Representatives and must be adopted by
both the House of Representatives and the Senate.
Once the Emergency Act is adopted and in effect, it is expected to have a retroactive
effect from 16 March 2020, and will apply until 1 September 2020, unless an extension
is necessary due to the continuing consequences of COVID-19. The regulation on
presumptions of proof in the event of late filing of annual accounts expires on 1 September
2023, as a directors’ liability in bankruptcy can be invoked for up to three years.
More information can be found here.
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Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
There has been no expressive Government intervention into the workings of contracts
in the Netherlands and the normal rules apply.
•
Delays in production, supply and transportation may result in delay or failure to
perform a contract. Therefore, particular attention has been given to existing
force majeure clauses within contracts. Contracts usually include a list of force
majeure events, including events such as natural disasters, wars, government acts,
etc. Whether a ‘pandemic’ such as the coronavirus and the resulting government
measures, is deemed to fall within the scope of the ‘force majeure’ clause will have to
be examined on a case-by-case basis.
•
Absent contractual clauses to this effect, Dutch law allows a contracting party to
invoke ‘force majeure’ by relying on various grounds under the statutory provisions
of the Dutch Civil Code in case of absence of fault, by virtue of law, a juridical act, or
based on common opinion.
Tenants
•
The Dutch Government has come to an agreement with housing corporations and
associations that tenants will not be evicted during the COVID-19 crisis. For tenants
who are unable to pay the monthly rent despite these measures, landlords will
endeavour to provide custom solutions. Evictions may only take place in case of
criminal activity or extreme nuisance.
•
Furthermore, the Dutch Government has initiated an emergency act allowing
temporary lease contracts to be extended during the course of the crisis. Currently,
Dutch law prescribes that any extension of a temporary lease will automatically be
converted into a permanent lease, causing landlords to terminate the contract at the
end of the lease. The emergency act will allow landlords to extend the lease with a
maximum of three months and until 1 September 2020 at the latest. The aim is for
this legislation to enter into force as soon as possible.
Businesses
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•
The Dutch Ministry of Economic affairs has drawn up guidelines with real estate
companies on how to cater shop owners in financial distress. The most important
guideline is for real estate companies to (partially) suspend the rent in April, May and
June, upon request.
•
Real estate companies are urged to act in accordance with the guidelines, however
they are not legally binding.
Government measures in key jurisdictions
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