Government measures in key jurisdictions 3rd edition final - Flipbook - Page 129
The Netherlands
Insolvency
Has the
government
made any
changes to
insolvency
legislation?
•
Entrepreneurs can apply to their municipality until 30 September 2020, for a maximum of three
months in the period between 1 June and 31 September 2020. Applications can therefore also be
submitted retroactively. You can find the eligibility criteria here.
•
As of June 2020 the Dutch government launched the Temporary Bridging Scheme for Flexible Workers
(TOFA). The TOFA is designed to support 'flexible workers' who have lost at least 50% of their income
and are not eligible to receive unemployment benefits. Examples include: employees with a zero-hour
contract, temporary workers, and students with a part-time job.
•
Eligible applicants have earned at least EUR 400 in February 2020 and not more than EUR 550 in April
2020. The entitlement amounts to a one-off allowance of EUR 1,650, being EUR 550 per month over
the course of March, April, and May 2020. Click here to view more information.
The Dutch Ministry of Justice and Security published a bill on 8 April 2020 on temporary
provisions in the area of the Ministry of Justice and Security in connection with the
coronavirus (Covid-19) outbreak (the “
”) and an accompanying
Explanatory Memorandum.
The Emergency Act provides for, among other things:
•
a temporary limitation on the ‘presumptions of proof’ for directors’ liability in case of
bankruptcy if filing the annual accounts is delayed as a result of Covid-19, and
•
the extension of the period for preparing annual accounts by the management board
instead of by the general meeting.
Certain provisions have a retroactive effect from 16 March 2020. The bill 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.
Contractual
Issues
•
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.
What measures
have been taken
to reinforce
contracts?
Government measures in key jurisdictions
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