Afik News 213 14.09.2016

Afik News 213 14.09.2016

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Legislative Updates

August 11, 2016

Declaration of a retroactive bonus after a shareholders dispute arises in oppression

A shareholder of a company filed a claim against the other for oppression due to withdrawal of company funds as management fees and transactions with related parties.  The defendant argued, inter alia, that the claim is of the company and not the other shareholder and thus a derivative claim must be filed...
September 8, 2016

A Controlling shareholder is personally liable for the company’s property city ‎tax debts ‎

A municipality filed a lawsuit in respect of city tax debt and claimed that the shareholders and directors of the companies holding the property should be personally accountable...
August 30, 2016

An employer must prove a relevant motive to terminate an employee

An employee was surprisingly terminated after 15 years of employment, due to the deteriorating in her health situation and without the employer raising any argument regarding her professional performance. The Court held that although the employee was the one to file the claim, the burden of proof to show legitimate reasoning for termination is on the employer. The employer did not meet the burden ...
August 17, 2016

Cancelation of a distribution agreement due to its mutual abandonment requires unequivocal behavior of the parties

An Israeli company sought to release itself from an agreement with an exclusive distributor for the Chinese market claiming, inter alia, that the agreement was abandoned by the distributor who did not commence distribution activity despite over 3 years that passed...
August 17, 2016

Filing of motion for status in Israel only after an arrest raises concerns of being fictitious

A foreign citizen entered Israel with a work permit valid only until termination of her employment in Israel. Upon termination of her employment, the foreign citizen remained in Israel and was arrested. At the hearing she made it clear that she does not intend to return to her homeland. After her arrest, the foreign citizen filed a motion, together with an Israeli citizen, to schedule an ...
May 15, 2016

A purchaser that a material information had been hidden from him is entitled to compensation for damages

A person purchased an apartment via a tender on “AS IS” terms and after seeing it. After the purchase of the apartment and its renovation it was discovered that the apartment is uninhabitable due to severe water and flooding damage...
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