Afik News 237 16.08.2017

Afik News 237 16.08.2017


Legislative Updates

July 9, 2017

Company officer whom did not receive company approval for a transaction in which he was in a conflict of interest will reimburse the company for all his gains

An office of an Israeli company held himself and through his brother and a friend shares of a Romanian company that served as the company's middleman for transactions in Romania. The office contended that his registration as a shareholder was a mistake and that in fact he only lent money to the Romanian company and was mistakenly registered as a shareholder and that as a result of the connection ...

July 17, 2017

In a set of agreement that are part of an M&A transaction if one agreement does not cancel the other both will be in force

Two shareholders of the Company agreed on acquisition of the company by one of them and signed a frame agreement for the transaction, a share purchase agreement and an employment agreement under which the seller continues to be employed in the company. The frame agreement set that the employment will continue until the seller reaches the age of 60 in one manner and for additional seven year in ...

August 2, 2017

‎‎‎‎‎‎‎‎Summons for a hearing must include information about intention to terminate an employee and the reasons for it

An employee executed a fixed-term employment contract, which was extended from time to time. He was invited to a conversation with his direct manager who presented him with an unsatisfactory evaluation form. Following this, the employee announced that he intends to seek another position at the employer under another manager. A few days later, the employee received a summons for a hearing, the ...

July 25, 2017

‎‎‎‎‎‎‎‎ A new collective agreement anchors recuperation day pay on IL 378 per day

On July 25, 2017, a collective bargaining agreement was executed between the Coordinating Bureau of the Economic Organizations and the Histadrut, according to which the amount of the recuperation pay will remain unchanged at ILS 378 per recuperation day, despite the increase in the Israeli price of living index over the past year. The recuperation pay will be paid to full-time employees for actual...

August 7, 2017

Cancellation of tender will be done in exceptional cases only even if the conditions of the tender are not sufficiently explicit

The Israel Land Authority issued a tender to lease land for construction. The terms of the tender were unclear, in a manner that raises several ways of interpretation, each of which leading to a different outcome. In addition, among the bidders who participated were two groups that coordinated their offers so as to divide the land plots between them, and thus tried to increase their chances of ...

July 16, 2017

Where an apartment owner demands fixing of defects but to no avail it may fix the defects itself

An apartment owner filed a claim requesting reimbursement from the contractor who built his apartment for expenses incurred in fixing defects in the purchased apartment after the contractor's attempts to fix the defects failed and the apartment owner fixed the defects by himself, without first notifying the contractor...