Second, the fact that a TASE skeleton is in fact worth millions of shekels (as appears from the petition) as it is an attractive target for takeover and entry into "backdoor" trading, does not mean that it is supposed to have such value, or that the TASE and the ISA are obligated to allow entry to trading "through the back door". The way for a company to become public is by publishing a prospectus, by virtue of the provisions of the Securities Law, 5728-1968 (hereinafter: the Securities Law). The reason for the need for a prospectus, the Supreme Court clarified:
"In 1929, the American stock market collapsed, pulling down the U.S. economy - and the economies of the entire world - in a way that led to a difficult and long-lasting economic period, known as the 'Great Depression.' . . . One of the lessons learned from that crisis was that the stock market should not be left unsupervised... The main tool by which supervision is carried out is the imposition of a prospectus obligation... within the scope of full disclosure..." (Appeal of Petition/Administrative Claim 7313/14 Israel Securities Authority v. Kedem Group Reinforcement and Renewal of Buildings in a Tax Appeal at paragraph 14 (October 12, 2015)).
As it appears from the Listing Rules of the TASE Regulations, the way to become a public company is by way of publishing a prospectus (see: Kedem case, supra, and Amir Wasserman, "The Obligation to Publish a Prospectus as the Defense of the Investor Public," Yoram Danziger 171 (Limor Zer-Gutman, Ido Baum eds., 2019)). If an object nevertheless purchases by entering an activity into a public company that is essentially a "shell company", he has the right to do so (subject to the approvals required by the company's institutions), since the company has not ceased to exist, and has not ceased to be public. However, it can do so even when the company's shares are on the preservation list, while then attempting to act within the framework of the rules that allow the return of the shares to the main list, under the proper supervision of the ISA and the TASE. It should be noted that according to the Authority's count, half of the companies that found themselves on the conservation list, due to their transformation into "shell companies", also found their way back to the main list.