An escrow agent submitted a motion to the Court to approve the liquidator's wage at a rate higher than that set forth in the regulations, retroactive, after doing their work. The Court held that although the good and complex work, the rule is that the wage of office holders will be terminated in accordance with the regulations. Furthermore, wage regulations should not be bypassed by other mechanisms, and this is even where the position holder has invested a significant effort in managing the process. A higher fee than prescribed in the regulations is for cases in which the position holder conducted a complex procedure of legal action from beginning till end, and the wage mechanism was determined in advance and not retroactively. Therefore, and since the request for high fees came retroactively, and since this proceeding ended in compromise at its beginning, the Court rejected the request.
Published in Afik News 246 20.12.2017
Related articles
A Company is not obligated by a shareholders agreement unless it adopted it into its articles of association
Business, Corporate and Joint Ventures
Dispute Resolution
Minority shareholders in a company sought to halt the implementation of a board of directors’ resolution to establish a data center requiring a major investment by the company, as they contended that the decision breaches the shareholders agreement, constitutes a deviation from the company’s fields of activity and amounts to minority oppression. The Court held […]
Even a ‘finder’ type middleman is required to prove being the efficient factor of the transaction to be entitled to a commission
Business, Corporate and Joint Ventures
Dispute Resolution
Commercial, Banking and Financial
A company entered into a finder’s fee agreement with a middleman, under which it committed to pay him a commission in exchange for establishing a connection between the company and an investor who would invest in it or its affiliates. Approximately seven years after the contact initiated by the middleman between the company and a […]
Pulling corporations with external shareholders into family legal proceedings necessitates caution to prevent business harm to third parties
Business, Corporate and Joint Ventures
Criminal Law
Domestic Relations
A divorce dispute led to a motion to include real estate corporations managed by the husband as direct parties to the proceedings, within the framework of the joint property, with the intent of preventing the dissipation of assets. The Court partially granted the motion for the joinder of the corporations. The Israeli Family Court Law […]
A director in a closely held company owes a fiduciary duty to the shareholders
Business, Corporate and Joint Ventures
Dispute Resolution
As part of a dispute between siblings who are shareholders and directors in a family-owned company, the sister (in her capacity as a director) proactively contacted the real estate taxation director and provided inflated, unsubstantiated valuations of the company’s assets. This action was taken to increase the tax liabilities of her brother regarding a share […]