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COMMERCIAL TENANCY (RETAIL SHOPS) AGREEMENTS ACT 1985 - SECT 13A

13A .         Head lease modified if inconsistent with lease affected by s. 13(1)

        (1)         Subject to subsection (3), where —

            (a)         the landlord under a retail shop lease holds the premises concerned under a head lease with which it would be inconsistent for the retail shop lease to continue until the day provided for by section 13(1); and

            (b)         the head lessor and the head lessee under the head lease are related within the meaning given to that expression by subsection (4); and

            (c)         the continuation of the retail shop lease as referred to in paragraph (a) would be consistent with the interest of the head lessor in the premises concerned,

                the head lease shall be taken to be modified, by operation of this subsection, to the extent necessary to remove the inconsistency referred to in paragraph (a).

        (2)         Where agreement has not been reached upon any question as to the extent to which a head lease is modified by operation of subsection (1), a person having an interest in the resolution of the question may refer the question to the Tribunal and Part III applies in relation to the hearing and the agreement or determination of the matter as if —

            (a)         the question were a question arising under a retail shop lease; and

            (b)         the parties to the head lease and, where the person referring the question to the Tribunal is not a party to the head lease, that person were the parties to the retail shop lease.

        (3)         The Tribunal may, upon application made to it by the head lessor notice of which has been given to the head lessee and the tenant, determine that there are bona fide commercial reasons, other than the desire to avoid the operation of any provision of section 13, for the head lease and the provisions thereof giving rise to the inconsistency referred to in subsection (1)(a) and, if the Tribunal so determines, subsection (1) is of no effect in relation to that head lease.

        (4)         For the purposes of this section the head lessor and the head lessee under a head lease are related if —

            (a)         one of them is, or is the spouse or de facto partner of, a lineal descendant of a grandparent of the other;

            (b)         one of them is a related body corporate of the other within the meaning of the Corporations Act 2001 of the Commonwealth;

            (c)         one of them is a corporation within the meaning of the Corporations Act 2001 of the Commonwealth and the other —

                  (i)         is an officer, within the meaning of the Corporations Act 2001 of the Commonwealth, of that corporation; or

                  (ii)         is a shareholder of, or holds a beneficial or contingent interest in a share in, that corporation; or

                  (iii)         is a discretionary or other beneficiary of a trust, the trustee of which is a shareholder of, or holds a beneficial interest in a share in, that corporation; or

                  (iv)         is, or is the spouse or de facto partner of, a lineal descendant of a grandparent of a person described by subparagraph (i), (ii) or (iii);

            (d)         one of them is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the other in relation to the premises the subject of the head lease;

            (e)         one of them is —

                  (i)         an employee; or

                  (ii)         an agent, a principal, a partner, a nominee, a solicitor, an accountant or an auditor,

                of the other or of a person bearing to the other any of the relationships mentioned in subparagraph (ii);

            (f)         one of them is —

                  (i)         a trustee for the other; or

                  (ii)         a trustee of a trust of which the other is a discretionary or other beneficiary.

        (5)         For the purposes of this section, where the head lessor or the head lessee, or each of those parties, comprises more than one person, a relationship of a kind mentioned in subsection (4) shall be taken to be established with a party if such a relationship is established with any of the persons of whom or of which that party is comprised.

        [Section 13A inserted: No. 49 of 1985 s. 5; amended: No. 48 of 1990 s. 11; No. 10 of 2001 s. 39; No. 28 of 2003 s. 17; No. 55 of 2004 s. 125.]



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