The Association's request for a stay of proceedings was discussed at its meeting on April 7, 2019. At the end of the hearing, counsel for the applicants declared that he would agree to a stay of proceedings for the purpose of the committee's action under three conditions: ")1) that the members of the committee shall be Judge Alsheikh, Applicant 1 and another member to be determined by the Court; (2) that the powers of the committee shall be unlimited; (3) The court will determine the fees of the applicants' counsel" (minutes of the April 7, 2019 meeting, at p. 232, paras. 3-7).
- In the decision of April 7, 2019, I addressed the parties' arguments regarding the possible appointment of a claims committee and the delay of the proceedings until the end of the work of such a committee. The decision clarified the background to the establishment of a claims committee in the framework of a hearing on a request to certify a derivative claim, and the advantages and disadvantages of establishing such a committee. With regard to the current committee, it was determined that the question of the timing of the establishment of the committee is important, as well as its composition and the inherent doubts regarding its ability to operate free from extraneous considerations.
It was further noted that when a respondent in a derivative action proceeding wishes to establish an independent committee during a hearing on the application for approval, it is preferable that it do so while obtaining the court's approval of the proceeding. This is so that the committee's conclusions will have legal significance. Moreover, it was noted that the establishment of the committee stems from the outline set out in the Sol Report, an outline that was prepared and formulated even before the application for approval was submitted. It was also taken into account the fact that the outline in the Sol Report stipulated that the decision to initiate proceedings should be made "as soon as possible, without further delay" (paragraph 22 of the Sol report).