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The Companies (Amendment) Act 2017 and its Impact on Landlord’s Rights in the Event of Tenant Insolvency

Alexander Yeo

[2018] SAL Prac 10

The Companies (Amendment) Act 2017 introduced new provisions which may prevent landlords from enforcing their rights against a defaulting tenant. For example, landlords may be prevented from exercising their rights of re-entry under a lease if the defaulting tenant goes into judicial management or proposes a scheme of arrangement. These provisions are new and have not yet been commonly utilised by defaulting tenants against their landlords. However, in time to come, defaulting tenants may increasingly utilise these new provisions against their landlords. This article discusses the risks to landlords arising from these new provisions, and proposes contractual and practical ways in which landlords may overcome such difficulties.