Tenant Company Taken Over, Asking to Invoice Parent Company

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    Tenant Company Taken Over, Asking to Invoice Parent Company

    Hi, One of our tenants is a limited company which has been bought as a going concern. They have said that the tenant company will no longer be trading and its business will be undertaken by the new owner that has accquired it. They have now served notice giving 3 months notice as they are building a new base of operations closer to the new owner's existing operations. They have asked for the invoices to be made out to the parent compamy. Is there any implication in invoicing the parent company (as the kicence agreements are with the tenant company not the new owner).

    The tenant company has not been dissolved 6 weeks after the effective date it was due to be dissolved from, although i imagine these things are not processed overnight by Companies House?

    If anyone versed in these things can offer any sage words of wisdom that would be much appreciated.

    #2
    What does tenancy state about such a change please?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Sorry, should have stated that there is nothing explicitly stated in relation to a change of beneficial ownership..

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        #4
        They have served notice. Who they ? A human, old company, new company? Was wording of notice compliant with tenancy terms please?
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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          #5
          Ah yes, my bad. A director of the parent company, who is also a director of the parent company, albeit from an email of the parent company.

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            #6
            Where a tenant is a company and its shares are bought by another company, the landlord's consent is not normally required for the change in ownership (unless the lease states otherwise) because there is no change in the legal tenant.

            Where one company is a subsidiary of another company, or both are subsidiaries of a third, within the definition of "subsidiary" given by s1159 Companies Act 2006, that constitutes a "group" of companies.

            Provided the lease does enable the tenant to permit the occupation of the premises by or share the occupation of the premises with another company within the same group of companies as the tenant within the meaning of s42 (1) LTA54 so long as no relationship of landlord and tenant is created that is usually permitted without needing licence or consent from the landlord.

            Where a tenancy is held by one member of the group, occupation or the carrying on of a business by another member of the group is treated for the purposes of s23 LTA54 as equivalent to occupation or the carrying on of a business by the member of the group holding the tenancy

            Unless the licence agreement states otherwise, i would think it is ok for the parent company to be invoiced for the rent. Presumably under the licence agreement the tenant has to give 3 months notice to terminate the agreement?

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