Afik News 221 04.01.2017

Afik News 221 04.01.2017


Legislative Updates

January 19, 2016

A public company need not report rumors or unverified news items published by the media ‎

A motion to approve a class action was filed against a public company, arguing that the company had to report a suspicion of existence of a cartel in the company’s field of business, significantly effecting the entire market and particularly the profits of the company...

December 28, 2016

Financing a corporate take-over by future dividends distribution is a legitimate transaction

  Motions were submitted for approval of a derivative action due to a board of directors resolution to approve the controlling shareholder to make future distributions of dividends to allow the controlling shareholder to finance the transaction for the taking over of the Company. The argument was that this is an extraordinary transaction with a controlling shareholder contrary to the Company’s interests. The Supreme Court held that reliance of the controlling shareholder on future distributions of dividends in order to finance the transaction for the purchase of the company is not unacceptable by itself and does not meet the definition of "extraordinary transaction with a controlling shareholder." Thus, the transaction does not require special procedures under law.  A decision to change the Company's capital structure while making a transaction of acquiring the company should be reviewed under strict scrutiny due to the apprehension of decision making in order to promote the best interests of the controlling shareholder over the best interests of the company. In this case, the decision was taken in a reasonable business manner under the circumstances and thus, the Court rejected to motion for a derivative claim.  

December 22, 2016

The tort of passing off requires does not require the existence of a registered trade mark

A reputable dresses designer who received his special recognition on a unique dress design, moved the Court for an injunction against a company manufacturing the same dress design...

December 20, 2016

Not any accident during a benefit activity of employees will be deemed a work accident

The National Labor Court held that the constitutional provisions of the Basic Law: An employer leased a football field for two hours a week as part of the benefits given to the employees outside working hours. During one of the games an employee was injured and moved to recognize the accident as an accident at work...

December 13, 2016

Avoidance from publishing proper pricing data is grounds for a class claim

A request to approve a class action was filed arguing non publicity of correct pricing and non-publicity of the option to purchase cheaper products...

January 1, 2017

Law Update: Change of dates for filing declaration on purchase or sale of real estate / land association action

On December 21, 2016, the Economic Plan Bill (legislative amendments to implement the economic policy for fiscal years 2017 and 2018), 2016, was enacted by third reading amending Article 73 of the Income Tax Law which states, inter alia, the date for filing a declaration ‎ to the land taxation Administration...