South African commercial property owners not only have to deal with the Consumer Protection Act, the new Companies Act is another law to deal with.
According to Rael Levitt, chief executive officer of Auction Alliance, commercial property owners need to quickly brush up on Chapter 6 of the new Companies Act.
This is whereby a Business Rescue Practitioner can suspend a lease agreement.
The uptick in business rescue by commercial tenants makes it vital to know what happens to a commercial lease when the landlord goes into business rescue, he says.
He explains that unfortunately this adds strain to landlords and although business rescue is new and untested, South Africa may soon see tenants with heavy lease commitments going into business rescue in order to restructure their lease agreements.