Government measures in key jurisdictions 3rd edition final - Flipbook - Page 11
Belgium
The regional authorities also provide for premiums.
• In the Flemish region:
- The “nuisance premium” if the company is obliged to close completely (a daily premium
euro), and
- The “support premium” in the company suffers a heavy loss of turnover (2,000 euro).
Insolvency
of 160
•
In the Walloon region: the “nuisance premium” and “compensation premium” are no longer available.
Premiums for certain specific sectors, such as the cultural sector, remain nonetheless available.
•
In the Brussels region: the “nuisance premium” and “compensation premium” are no longer available.
Premiums for certain specific sectors, such as the cultural sector, remain nonetheless available.
•
For the relevant topics, please refer to section Personnel at our Corona Desk topics, please refer to
section Personnel at our Corona Deskwebsite.
•
On Friday 24 April 2020, Royal Decree n° 15 on the suspension of implementing executive
measures and other measures in favour of undertakings during the Covid-19 crisis entered into
force.
Has the government
made any changes
•
to insolvency
legislation?
Pursuant to the afore-mentioned Royal Decree, during the suspension period, undertakings are
protected against:
– conservatory seizure or executive seizure (with some specific exceptions),
– forced bankruptcy, compulsory winding up, compulsory transfer under judicial authority,
– unilateral or judicial dissolution of contracts due to non-payment of a monetary debt; however,
this does not apply to employment contracts, and
– revocation of the reorganization plan, i.e. the payment periods provided for in the approved
reorganization plan are extended for the duration of the moratorium.
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
•
The suspension period was between 24 April 2020 and 17 June 2020. This period was not extended.
•
On April 24, 2020, a number of measures were taken to ensure the continuity of companies
during Covid-19, which also have an impact on current contracts: agreements concluded
before April 24, 2020 cannot be (unilaterally) terminated or (judicially) dissolved, in case of
late payment as a result of Covid-19. The other contractual and/or legal obligations and/or
rights of the contracting parties remain in place, such as set-off, the exception of nonexecution, the right of retention, etc.
•
This measure expired on June 17, 2020 which means that the general legal and contractual
provisions apply.
•
No other specific legal regulations were taken to reinforce contracts.
•
The parties will have to analyse the applicable contractual provisions in order to establish
whether the current governmental measures can be invoked to suspend performance under the
contract or to lift liability for non or late performance. Contracts in Belgium often include clauses
relating to force majeure or hardship.
Government measures in key jurisdictions
11