Afik News 216 26.10.2016

Afik News 216 26.10.2016


Legislative Updates

April 4, 2016

An employee registered as holder of the shares in escrow for the employer will be entitled to rights of an employee despite being registered as a shareholder

Part of the conditions for a tender of the Ministry of Defense the supplier was required to be held at least 50% by an engineer. For that reason an engineer working for a company was registered as a shareholder and received separate monthly consideration for the holding in escrow in addition to the salary.  Upon termination of the employment the company argued that the engineer is not entitled to ...

October 1, 2016

One may incorporate a special purpose vehicle for a transaction and liquidate it if the transaction falls through

A land owner sold real property to a company who breached the agreement, terminated by the seller due to a breach.  Three years thereafter the seller filed a claim against the company, which in the meanwhile was liquidated and erased.  Thus, the seller filed the claim also against the director who signed the affidavit at the liquidation process declaring that the company has no debts...

September 27, 2016

Enforcement of a non-competition clause will be made only where it was shown that the employer has ‎a legitimate interest

An employer filed a claim against an employee to enforce a non-competition clause and a contractually agreed compensation...

August 28, 2016

Well-known trade mark will not be protected if it is not recognized and identified by consumers in Israel

Commercial companies made commercial use of the famous artist Salvador Dali’s name for marketing clothing products in Israel. A claim was filed with the Court, claiming, inter alia, that such companies breached a registered trade mark and also a well-known trade mark...

September 1, 2016

Even if a person is not a proxy of a foreign company he may still be legally served for the company

A director and CEO of a company that owns shares of a non-Israel company was legally served for the company under the assumption that he is a licensed business manager of the foreign company...

September 15, 2016

Cancellation of a tender after opening the bids shall be made only in extreme and exceptional cases

A tenders committee decided to cancel a tender despite the fact that a large number of bidders duly submitted their bid...

October 8, 2016

A lessee has no duty to disclose on lessee’s own initiative past criminal records

A lessor terminated the lease after discovering that the lessee has a criminal record...