Afik News 143 08.11.2017

Afik News 143 08.11.2017


Legislative Updates

October 3, 2017

A founders agreement defining responsibilities of shareholders in the company may be terminated if a party did not fulfill its responsibility

Two friends, a business man and a fashion designer, established a business for sale and lease of evening dresses and bridal gowns and executed a founders agreement under which the businessman was in charge of all the administrative and economic aspect of the business and the designer was in charge of all the designing and manufacturing aspect.  A Tax Authorities investigation revealed serious ...

October 18, 2017

One may make service of process in a shareholders’ dispute to the representative of the shareholder to the shareholders meeting

A company's shares were held by an Israeli company and two Chinese companies. The Israeli company opened a shareholders’ dispute against the Chinese companies and made service of process to one of them by handing it to a representative who came to Israel to visit the company offices and participate in the shareholders meeting as the representative of the defendant shareholder...

October 15, 2017

An employer may disclose reasons for termination of an employee

An employee developed in his free time a project with a partner and actually offered it to the employer who refused the opportunity.  The employee was called for a hearing because of a clause in the employment agreement forbidding any other activity without the written agreement of the employer and thereafter was terminated and his computer, containing also private data, was taken from his room.  ...

October 3, 2017

A distributor may sell in the local market the goods that remained with it at the end of the distribution agreement

A company acted as a distributor of Beluga Vodka for Israel's duty-free shops only, and for this purpose purchased goods at a price 5% lower than the one purchased by Beluga’s exclusive distributor in Israel. After the distribution agreement was terminated by the manufacturer, the manufacturer moved the Court for an injunction preventing the distributor from selling the remainder of the goods in ...

October 10, 2017

A significant delay in filing a libel claim can indicate that things never happened

A dispute between two people assault led to a battery, followed by an e-mail about the incident sent to several recipients. The assailant contended that this was a defamatory e-mail message, while the other party contended that it was a credible and factual record of the incident...

November 6, 2017

User of facilities on the roof is required to pay lease to the owner of the rights in the roof

A restaurant leased a property to which various facilities (such as a chimney) were connected and are, inter alia, on the roof of the building in an area that is not owned by the lessor. The restaurant refused to pay usage fees in respect of the use in the roof area, arguing that the facilities belonged to the landlord and a lawsuit was filed against it for eviction...