Companies Act 2014 section 544

Provisions with respect to leases

Section 544 sets out protections for lessors (landlords) and property owners whose leases or hiring agreements might otherwise be adversely affected by a compromise or scheme of arrangement during an examinership.

• A scheme of arrangement cannot reduce or extinguish future rent or periodic payments under a land lease unless the lessor gives written consent
• A scheme cannot restrict a lessor's rights to recover possession, forfeit the lease, recover unpaid rent, or claim damages for breach of lease obligations
• Similar protections apply to leases or hiring agreements for non-land property of substantial value, where the court must also consider the unexpired term of the agreement
• All of these restrictions can be set aside if the lessor or property owner provides written consent to the inclusion of the relevant provision in the scheme proposals