Afik News 250 14.02.2018

Legislative Updates

February 1, 2018

In order to remove discrimination against a shareholder, the Court has full independence in choosing the appropriate remedy

In a family company founded by two brothers, a dispute broke out between one of the brothers and the heirs of the other. The heirs contended that their rights as shareholders were oppressed by being excluded from company management and operations and transactions. The heirs contended that the auction mechanism between the parties determined by the Court deprives them because they do not have all ...

January 2, 2018

A motion for liquidation filed in order to apply pressure is in bad faith and will be rejected even if technically the company is insolvent

An ILS 18 million dispute between a flour supplier and a food-producing company was settled by a mediation agreement. When the agreed amount was not paid, the supplier sent a demand letter and then filed a request to liquidate the company...

January 17, 2018

Prior to dismissal an employer need seek an alternative position for an employee who can no longer fulfill current position

An employer held a conversation with a veteran employee, during which it was explained that the employer wishes to remove the employee from his managerial position due to relevant considerations. It was agreed that the supervisor would consider future optional positions for the and that there would be a follow-up meeting within a few days. In addition, the supervisor clarified that if there is no ...

January 13, 2018

To obligate shareholders one need prove that company was managed to deceit creditors

An employee filed a claim against the employer as well as personal claim against its shareholders alleging that they tend to open companies and mix their private assets with company assets while hiding under the organizational-legal structure they created and using it to deprive the employee as a creditor of the employer...

December 15, 2017

Seller of land that does not terminate an agreement upon failure to receive payments may lose the right to terminate

Purchasers of land ceased paying the consideration to the sellers, after they paid only the first installment. A few years later, the purchasers turned to the Court to extend the time for performance of their obligations. The sellers, however, sought to declare the termination of the agreement in the light of a fundamental breach by the purchasers...