Afik News 245 06.12.2017

Afik News 245 06.12.2017


Legislative Updates

November 14, 2017

The doctrine of piercing the corporate veil applies also to not-for-profit societies

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...

November 20, 2017

Representation as to chances of an investment will usually not be obligating as it is a representation as to the future

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...

August 9, 2017

Legal Updates: Increase of maximal interest for loans

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 ...

November 14, 2017

‎‎‎‎‎‎‎‎Monitory compensation to an employee for non-issuance of options will be taxes as work income if there was no right to receive options

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 bonus or issued the options the manager filed a claim at the Labor Court, which was settled...

November 14, 2017

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

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. Exhibiting a high certainty that other relevant evidence ...

November 21, 2017

Lessor may demand eviction if lessee expressed its intention not to vacate upon expiration of the lease

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...

November 13, 2017

‎‎‎‎‎‎‎‎A public body is obligated to equality when purchasing services even if it is not subject to a duty of public tender

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...