Expertise

We are committed to keeping everyone safe from COVID-19. From 1 December 2021 until further notice, only people who have confirmed they’ve received two doses of the COVID-19 vaccine will be able to enter our offices – this includes all staff, clients, and contractors.

The COVID-19 Response (Further Management Measures) Legislation Bill (the Bill) provides, amongst many other things, for company directors to have asafe harbour in relation to certain obligations that directors have. The intention of the safe harbour is to enable companies to continue to operate through COVID-19 even if they temporarily have substantially reduced, or even no, revenue.

COVID-19, and the resulting restrictions on movement of people, has meant that manycontractual obligations are either not able to be complied with, or will be significantly more difficult or expensive to comply with.

So what do you do if you will not be able to comply?

COVID-19 threatens the viability of numerous New Zealand businesses. Despite the range of government assistanceavailable, it is anticipated that many will not survive.

The Auckland District Law Society’s Deed of Lease Sixth Edition (ADLS lease) is commonly used for commercial leases.

As a consequence of the Christchurch earthquakes the ADLS Lease was updated to deal with situations where a tenant could not have access to their premises where there is an emergency. That provision is set out in clause 27.5. The clause provides that a “fair proportion of the rent and outgoings shall cease to be payable from the period commencing on the date the tenant became unable to gain access to the premises to fully conduct the tenants business from the premises until the inability ceases”.