However, a participant is not entitled, as stated in section 260 of the Ordinance, to submit a request for liquidation, unless, inter alia, the shares were allocated to him from the outset "or he had at least six months of the eighteen months preceding the commencement of the liquidation or were transferred to him due to the death of their previous owner" (according to section 260(a) of the Ordinance).
The Respondents claim that the Applicant is not a person in whose name the shares were registered at least six months prior to the commencement of the liquidation proceeding, and therefore she is not a participant, she is not a member, and she is not entitled to request the liquidation of the company. In this regard, the respondents hold on to the ruling of the Supreme Court Other Municipal Applications 1673/92 Yitzhak Lev v. David Shani et al., Takdin (2), 955. In the aforementioned Lev case, the question of what is the law of a deed for the transfer of shares that was signed, but the transfer was not recorded in the register of shareholders – members. The District Court held that the transfer takes place between the transferor and the transferee and has the power to remove the shares from the creditors' grasp. The Supreme Court, which was in doubt as to whether this conclusion was legally correct, did not need to rule on it, but overturned the ruling of the District Court, due to the provisions of Regulation 17 of the Second Appendix to the Ordinance, according to which as long as the name of the transferee was not registered in the register, and saw the transferor as the shareholder (also inCivil Case 795/60 in the case of Subi (Home Decks) Ltd., Judgment 26, 245).
However, what is the law of a shareholder who is not registered in the Register of Members, due to an unlawful refusal on the part of the company to register him? We asked this question in the discussion above, and we brought the position of the scholar Z. Cohen in her book "Shareholders in a Company – Rights of Claims and Remedies" (5751-1990, at pp. 361-362, and see also Z. Cohen, "Liquidation of Companies", ibid., pp. 155-157).