Afik News 236 02.08.2017

Afik News 236 02.08.2017


Legislative Updates

July 20, 2017

In a closely-held company it is possible to separate the shareholders even if no oppression is proven

Employment of a minority shareholder was unilaterally terminated, his mobile phone disconnected, access to company servers blocked and company financial information refused. The controlling shareholder contended that the minority shareholder competed with the company...

July 18, 2017

‎‎‎‎‎‎‎‎‎Not any misleading public announcement to the stock exchange is grounds for a class claim and one ‎need show linkage drop of the share price ‎

A shareholder of a public company moved the Court to approve a class action, contending that the misleading reports regarding experiments held by the company led to inflation of share price and the share price plummeted after the failure of the experiment...

July 5, 2017

A party contending that a draft constitutes a binding agreement cannot ignore an arbitration clause in the same drat

An Israeli company filed a lawsuit against a Jordanian company in which it claimed that although no contract had been signed, the exchange of drafts between the parties constitutes a binding contract between them regarding a business venture to fly Muslim pilgrims from Israel to the Haj and Khadra festivals in the holy sites in Saudi Arabia. The Jordanian company moved the Court for a stay of ...

July 20, 2017

‎‎‎‎‎‎‎‎Returning from the decision to dismiss an employee means that the employee has not been dismissed ‎and therefore will not be entitled to compensation ‎

An employee was terminated while pregnant without her employer knowing about the pregnancy. The next day, the employer withdrew her decision, but requested that the employee be transferred to another position at the same salary. The employee refused...

July 13, 2017

‎‎‎‎‎‎‎‎Failure to produce a due diligence form in a used vehicle transaction is a misrepresentation

A purchaser of a used car from a car dealer was forced to repair the motor shortly thereafter and ‎contended that certain details were not disclosed to her. The purchaser sold the vehicle at a ‎significantly lower price than the purchase price and sued the dealer...

July 5, 2017

Non-signing of an agreement does not necessarily negate its validity

Due to a disagreement purchasers of an apartment canceled the agreement by telephone and in a letter to the contracting company. The company did not sign the cancellation letter but sent an e-mail containing actions to be taken for the cancellation, including reports to the Tax Authority. Later, the purchaser sought to withdraw the cancellation of the agreement but the company refused...