Afik News 225 01.03.2017

Afik News 225 01.03.2017


Legislative Updates

February 7, 2017

Loss of trust between holders of a closely held corporation is sufficient for an oppression claim even if not actual oppression happened

A shareholder in a company, holding 45% thereof (the remainder held by a father and son) raised a list of oppression arguments.  Inter alia he claimed that the control holder has other activities although one of them is the CEO of the company...

January 29, 2017

Exercise of right of first refusal does not require a final and binding agreement with a third party and a purchase offer is sufficient

A shareholder wished to sell his shares and notified the other shareholder so that he can exercise the right of first refusal mechanism set between then. The other shareholder argued that the share sale transaction is invalid because the right of first refusal mechanism was not duly exercise as a final agreement was not sent...

January 15, 2017

An employer is not entitled to compensation for former employee’s competition without a legitimate interest worthy of protection

A company filed a lawsuit against two former employees alleging violation of a written non-compete undertaking and larceny of trade secrets...

February 13, 2017

A foreign bankruptcy verdict may be enforced in Israel

An Italian company undergone bankruptcy proceeding while proceedings in Israel were open.  The Italian Court held that no proceedings may be opened against the company.  The Italian company sought to cancel the liens imposed in the Israeli proceedings...

February 15, 2017

Marché ouvert does not exist if at the date on which it was possible to register the right there was doubt ‎as to the identity of the rightful owners ‎ ‎

A person purchased real estate and recoded a cautionary note.  Another person claimed to be the owner, and not the seller, and that‏ ‏the rights, ‎as shown on the extract from the land registry, were‏ ‏recorded by fraud and therefore the ‎cautionary note must be removed...