Government measures in key jurisdictions 4th edition - Flipbook - Page 138
The Netherlands
Insolvency
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
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 "Emergency Act") 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;
•
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.
•
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?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
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.
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