Afik News 235 19.07.2017

Afik News 235 19.07.2017


Legislative Updates

June 5, 2017

No personal compensation shall be granted to a shareholder for breach of fiduciary duties unless the ‎shareholder can prove independent damage

 A company and a shareholder filed a claim against the other shareholder whom, after ceasing to work as a manager in the company and commenced working at a competitor arguing, inter alia, that the shareholder exploited the reputation of the company to promote the activity of the competitor...

June 29, 2017

‎‎‎‎‎‎‎‎‎‎A verdict fulfilment of which means change of control over a company will be stayed during an appeal

A verdict ordered shares to be issued so that after the issuance the recipient of the shares will become the control holder...

June 8, 2017

Agreement because of business considerations to payment lower than agreed due to pressure of the ‎other side is not economic coercion

An Israeli company was in contact with an American company that deals with venture lending, in which in addition to interest and commissions, options in the borrowing company are also received, so that the Israeli company will link customers to the American in exchange for participation in revenues. In the first deal, the Israeli agreed to a low commission due to the American's demand. The parties...

July 4, 2017

‎‎‎‎‎‎‎‎Purchaser of company’s activity will bear past social benefits payments even if otherwise agreed in the ‎acquisition agreement‎

In a transaction in which all assets of an active company were purchased, all employees were terminated and received severance pay.  A pregnant employee, at the beginning of her pregnancy, was rehired by the purchaser but terminated after two weeks.  The employee contended that she is entitled from the selling company and the purchaser to compensation and full salary until two months after she ...

June 15, 2017

‎‎‎‎‎‎‎‎Absence of a signature will prevent enforceability of contract if the language thereof leads to the interpretation that it will become binding only upon signature

A person brought a big evacuate and build project to a company dealing with real estate entrepreneurship.  After an agreed draft was reached the company signed it but the person replied that he will sign only upon return from holiday.  After a few days he notified that he withdraws from the agreements...

July 2, 2017

Contractor may foreclose ‘registration fees’ upon termination of negotiation in bad ‎faith

A contracting company refused to refund registration fees paid to it upon the execution of an application form for the purchase of an apartment in a residential project contending that the purchasers terminated the negotiations in bad faith and under the application form it may foreclose the registration fee as liquidated damages if the purchaser decides not to purchase the unit or fail to execute...