Companies Act 2014 section 558R

Further provision with respect to leases

Section 558R restricts what a rescue plan for a small or micro company can include in relation to property leases, protecting landlords' rights unless they give written consent.

• A rescue plan cannot reduce or eliminate rent or other regular payments due under a lease of land after the plan takes effect, without the landlord's written consent
• A rescue plan cannot restrict a landlord's rights to recover possession, forfeit the lease, recover unpaid rent, or claim damages for lease breaches occurring after the plan takes effect, without the landlord's written consent
• These protections apply to all covenants and obligations under the lease, not just rent payments
• These restrictions are lifted only where the landlord or property owner has consented in writing, in the prescribed form, to the inclusion of such provisions in the rescue plan