Afik News 233 21.06.2017

Afik News 233 21.06.2017


Legislative Updates

June 4, 2017

An active manager of a corporation that could have prevented a tax offence may be personally liable to it

A company and its manager were indicted for non-filing of tax returns.  The manager contended that his wife is registered as a manager in the company and she is the one who signs tax returns...

June 5, 2017

Where the purpose of the existence of a corporation has not been proven personal debts may be imposed for of execution of transactions through a corporation

A dispute arose due to non-payment of brokerage fees as agreed between a middleman and an entrepreneur.  The entrepreneur contended that he is not personally liable because he was not a party to the agreement but a corporation under his control. In addition, the entrepreneur contended that the middleman is not entitled to payment because the agreement included a condition precedent setting tht the...

June 11, 2017

In apprehension of larceny of trade secret one may even receive an order to seize a private G-Mail account of an employee

A dismissed employee sent to himself by email the database of the employer.  The employer approached the Labor Court which appointed a receiver to seize the computer, cellular phone and personal G-Mail mailbox of the employee...

June 4, 2017

‎‎‎‎‎‎‎‎ A bank may close an account upon suspicion of money laundering using the account

A bank froze an account of a client after suspicion that the client extends services of checks clearance and over-the-counter loans without a license and money laundering activities...

May 28, 2017

An arbitration clause will be valid even if the whole agreement is subject to a condition precedent that has not yet been met

An agreement between a contractor and a group of apartment owners regarding a TAMA 38 buildings refurbishing plan included an exclusive arbitration clause and a condition precedent under which the agreement enters into force only after the contractor receives building permits. The contractor did not receive building permits and the owners sought to cancel the agreement...

June 6, 2017

Dissolution in kind of land held by tenants in common requires furnishing a drawing showing that it is possible

A Court ordered on disassembly of a land held in common by sale by mutual bids. One of the co-owners in the land contended that this was a mistaken resolutoin and that it would be preferable to dismantle the co-ownership by division in kind...