Since the remaining claims are only claims for the provision of accounts, I will open the discussion in the relevant legal framework, and then I will address the claims of the parties in each of the claims and decide them.
Providing accounts to a shareholder
- The plaintiff owns shares in both companies (Greenberg Properties and Kedem Be'erot), and as aforesaid, petitions to receive for review various documents (accounts) of the companies. A shareholder's right to inspect the company's documents may be found in the company laws themselves, in the company's basic documents, as well as in general legal principles.
- As has been ruled more than once, a shareholder's right to information about the company can be anchored in a number of sources. The shareholder has property rights in the company, and therefore obtaining information about the company's business, activities and accounts is necessary for the shareholder in order to make informed decisions regarding his property; The shareholder needs the information to monitor the activities of the company's officers (see Civil Appeal Authority 741/01 Kot v. Estate of Yeshayahu Eitan z"l, P.D. 57(4) 171 (2003)); The information is required to enable the shareholder to vote and make decisions at the shareholders' meeting (see Civil Appeal Authority 981/18 Musa Drilling in Tax Appeal (Darryl King) v. Badarna [Nevo](2/5/2018); Opening Stimulus (Tel Aviv District) 29611-10-10 Regev v. Elyakim Herman Advertising in Tax Appeal [Nevo] (31/12/2012); Yoram Danziger Right to Information About the Company 270-269 (2000)); The collection of information by the shareholder is sometimes also necessary to determine its financial situation and to allow the shareholder to consider taking action against the company or its shareholders (see Civil Appeal Authority 2903/13 Intercoloni Investments in Tax Appeal v. Shkedi, paragraph 3 [Nevo] (27/8/2014); Civil Case (Central District) 713-04-18 Biran v. Tech-Sign Advanced Signage Systems in Tax Appeals [Nevo] (17/11/2020); Zohar Goshen Assaf Eckstein Corporate Law 289 (2023)).
- The provision of information to the shareholder is also based on the fiduciary duties of the officers to the shareholders (Article 254 to the Companies Law). A person who owes a fiduciary duty to the beneficiary is also required to provide all the relevant information that he has received in the course of his role as a trustee (see and compare Section 8(1) The Shlichut Law, 5725 - 1965, and Section 254(a)(4) to the Companies Law). The duty of fairness imposed on the officer also requires him to make available to the shareholders all the relevant information regarding the shareholder's property. In his book "The Right to Information About the Company (2000)", the author Y. Danziger clarifies that "The right of shareholders in a company to information is a basic principle in corporate law. The roots of this principle are rooted in the democratic concept that underlies the sharing of the company's capital." (ibid., p. 6) (See also Z. Cohen, Shareholders in the Company - Claim Rights and Remedies, Vol. 2, No. 45 (2008)).
- Granting the right of access to the shareholders is also intended to deter the officers of the company from making improper use of their powers and powers to act on the company's assets and rights (see, for example, Civil Appeal 5320/90 A. Z. Baranovitz Properties and Rental in a Tax Appeal v. Israel Securities Authority, P.D. 46(2) 818, p. 841 (1992); Civil Appeal 39037-02-25 Audacity - Fairchild Technology & Venture for TED. N' Man, paragraph 58 [Nevo] (2/7/2025)).
- Although the shareholder has the right to receive information from the company, this does not mean that he is entitled to review all the company's documents, since the interests of the shareholders are also opposed to other interests. Between The rest raises a concern that the shareholder will use the information given to him for purposes that are contrary to the company's benefit and act in bad faith. There is also concern that a shareholder will take advantage of the right to inspect in order to promote his personal interest, transfer information to the company's competitor, exert improper pressure on officers to make decisions that benefit him over the company or other shareholders, and more (See Z. Cohen above, at p. 47).
- The Companies Law enshrines the right of shareholders to review the company's documents in sections 184 - 185, However, the legislature chose to limit and limit the right, and this is stated in the following sections:
- Shareholders have the right to inspect the Company's documents detailed below:
(1) Minutes of the General Meetings, as stated in Article 90;