In our case, no such special circumstances have been proven. Small companies are often characterized by a single party owning all of the company's shares, as well as proximity or identity in interests, and the actual fulfillment of executive functions on behalf of the company. However, this is not enough, in the absence of additional circumstances, to bring about a consolidation between the company and its shareholders with regard to the arbitration clause, while ignoring the company's separate legal personality.
Relying on the second circle of expansion, the applicants look to Cuba as Thai's suit. However, the rule is that "recognition of a person who is not a signatory to the arbitration agreement as a substitute is not appropriate in cases where the original party to the arbitration agreement is still involved in the proceeding, and therefore there is no room to recognize the alternatives in parallel with the original party to the agreement" (paragraph 13 of Ronen v. Cohen), as well as Civil Appeal Authority 2639/14 Adv. Uri Brimer-Ne'eman v. Meir Atar et al., [Nevo], where the addition of the trustee was not permitted,
Among other things, because the original party was involved in the proceeding.
As emerges from the cross-examinations, the cells are alive and active, even though they have emptied themselves of real estate assets, and in any case it has not been proven otherwise.
- Therefore, it remains to clarify the applicants' reliance on the third circle - the core of the dispute.
In the Ronen v. Cohen judgment, it was noted in the context of the Third Circuit that
"Its purpose is to prevent parties from evading participation in an arbitration proceeding to which they have substantially agreed to formalistic claims," while "the most typical cases of this circle are those in which it is requested that those who are closely connected to one of the parties who sign the arbitration agreement are requested but are separated by the principle of separate legal personality. Thus, for example, when a party to arbitration wishes to add to the proceeding the controlling shareholder of the company with which it has signed an arbitration agreement..." - As the situation in our case.