Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeMonitory compensation to an employee for non-issuance of options will be taxes as work income if there was no right to receive options
Taxation and Government Incentives and Funding
Commercial, Banking and Financial
Business, Corporate and Joint Ventures
The employment agreement of two senior managers of an internet service provider (ISP) included a bonus in case of a merger and they also contended that they were entitled to employee stock options in the merged company. After the merger of the ISP with two other ISP’s and the merged company did not pay the […]
The doctrine of piercing the corporate veil applies also to not-for-profit societies
Commercial, Banking and Financial
Business, Corporate and Joint Ventures
Dispute Resolution
A lender of money to a not-for-profit society, which ceased operation, and when the sum was not repaid, sued not only the society but also seven people who were registered as its founders. The Court found the society responsible but not its founders and held that a not-for-profit society is a legal corporation with a […]
Lessor may demand eviction if lessee expressed its intention not to vacate upon expiration of the lease
Real Estate
Dispute Resolution
A lessor and a lessee negotiated the renewal of the lease at the end of the year, but when the negotiations failed, the lessee announced that as far as it is concerned an agreement had been executed and it does not intend to vacate the property at the end of the year. The Court held […]
An employer who showed that an employee took its material may receive a search and seizure order that is not limited to certain key words
Commercial, Banking and Financial
Labor Law and Immigration
Dispute Resolution
A dismissed employee sent to himself by email the database of the employer. The employer approached the Labor Court which appointed a receiver to seize the computer, cellular phone and personal mailbox of the employee. The findings revealed that the employee took the employer’s database several times and acted to sell it to third parties. […]
Valuation of ordinary shares and preferred shares by using OPM method (Option Pricing Method)
Business, Corporate and Joint Ventures
Mergers and Acquisitions
In order to evaluate the value of holdings in the Company’s share capital, for purposes of sale, taxation, revaluation in the financial statements and other needs, we often find companies with a capital structure consisting of various types of shares with different rights on their holders. In order to assess the value of the holdings, […]
Maritime Lien and Ship Arrest in Israel for Maritime Bunkering Debts
International Transactions and Dispute Resolution
Maritime, Aviation and Transportation Law
Dispute Resolution
When a car fuels at a gas station and “neglects” to pay, it is a debt of dozens of dollars at most and it is relatively easy to locate the vehicle owner and collect the money. In contrast, when a ship is refueling, the cost may reach hundreds of thousands of dollars, the payment is […]
Representation as to chances of an investment will usually not be obligating as it is a representation as to the future
Business, Corporate and Joint Ventures
Commercial, Banking and Financial
Dispute Resolution
Investors lost their money in investing in commercial real estate in Latvia and sued, among others, the managers of the entrepreneurial company, inter alia, due to misrepresentations made in presentations and mismanagement of investments. The Court rejected the claim against a manager of the entrepreneurial company and held that in order to raise a contention […]
Legal Updates: Increase of maximal interest for loans
Commercial, Banking and Financial
Business, Corporate and Joint Ventures
Competition
The Knesset approved a legislative amendment applying similar obligation to any lender, including institutional lenders (banking corporation, ancillary corporation, a clearing house, etc.) and anyone engaged in operating a credit intermediation system. The law protects non-corporate borrowers but does not protect corporations. The amendment raises the maximum possible interest rate, which may now reach as […]
A public body is obligated to equality when purchasing services even if it is not subject to a duty of public tender
Public Law, Environment and Tenders
Dispute Resolution
A local newspaper moved the Court to order a municipal company to publish equally in local newspapers and contended that the reason for the municipal company avoiding publishing in it is criticism in the newspaper on such municipal company. The Court held that the tender obligation does not apply to municipal companies because regulations to […]
