Afik News 240 27.09.2017

Afik News 240 27.09.2017


Legislative Updates

August 31, 2017

Transfer of shares at a shareholder will not be deemed transfer of shares of the company absent a specific language setting so

A corporation held shares in a company, which articles of association and shareholders agreement set a right of first refusal to the shareholders in case of sale of shares in the company. One of the two shareholders of the corporation sought to pledge its holdings in the corporation.  A shareholder in the company contended that this should be deemed a transfer of shares in the company - that ...

September 10, 2017

Transfer of a company asset to a shareholder is deemed dividend distribution that require fulfilment of the terms for such

A holding company sought to transfer the ownership in a subsidiary to its mother company...

September 17, 2017

A receiver in bankruptcy of a shareholder is not entitled to receive information beyond information given to other shareholders

A receive in bankruptcy of a shareholder of a company moved to Court to receive all information regarding the group of companies in which the bankrupt acted as a director, including information regarding future actions that the companies intend to make, alleging that the receiver "enters the shoes of the debtor"; Thus, the debtor’s right - as a director - to receive this information is also ...

August 21, 2017

‎‎‎‎‎‎‎‎ In breach of a non-competition undertaking the injured party is entitled to compensation for its losses as well as for the profits of the breaching party

A developer of a diamond evaluation software entered into a marketing agreement with a seller of diamond measurement systems. The agreement stipulated that the marketer may not develop or sell competing software during the period of the agreement and 18 months thereafter. At some stage, the marketer informed the developer of termination of the agreement and immediately began marketing a competing ...

August 29, 2017

Payment to employee from profits of a company does not render the employee a partner

A diamond dealer engaged with a company dealing with the manufacture and sale of diamonds in an agreement under which the diamond dealer acted as a salesperson and was entitled to a percentage of sales. At some point the diamond dealer was terminated, but the company contended that he is not entitled to rights of an employee because in practice the parties were engaged in a partnership. The ...

September 4, 2017

A lessor ‎is may not grant a right of use to a third party in a manner that contradicts Lessee’s rights

Lessees of an events hall discovered, one day after the transfer of a deposit given as guarantee to secure the lease, that legal proceeding with the previous lessee, who refused to evacuate the premises, ended by an undertaking of the lessor to enable the previous lessee to hold eight additional events during the rental period of the incoming lessees...