Afik News 248 17.01.2018

Afik News 248 17.01.2018

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Legislative Updates

December 26, 2017

Classification of funds injected into a company as investment or shareholders loan will be made pursuant to a list of tests and not only the name given to it

Upon incorporation of a company, a shareholder invested hundreds of thousands as a loan against allocation shares. The company refused to repay the loan, arguing that it is in losses...

December 25, 2017

An alarming picture regarding the manner of employing employees in not sufficient for piercing the corporate veil

Employees demanded to pierce the corporate vail and personally sue a shareholder, contending that they were deprived of their social rights, did not give pay slips or notice of their employment conditions, and were transferred to be employed by another company, which was only a straw company...

December 26, 2017

The right to a hearing applies also to a hired employee who has not yet started working

A candidate for a job successfully passed a job interview and completed admission procedures. Prior to commencing employment, the supervisor informed him that she would not be able to commence working...

December 10, 2017

An escrow agent for investment funds need not supervise the project and is exempt of liability once the money is released from the escrow

A group of investors in a collapsed real estate transaction in Costa Rica sued the lawyer of the entrepreneurial company, who was an escrow agent for the deal, contending that he had to transfer money only after supervising the events in Costa Rica and acted in a conflict of interest...

December 28, 2017

A passenger whose flight was canceled is entitled to compensation except in exceptional circumstances out of the control of the airline

A flight was canceled a short time prior to the scheduled time due to illness of a crew member...

December 21, 2017

A management company of a building may not grant usage rights of the common property unless specifically approved by the apartments owners

A condominium’s house committee forbade a shop owner to put a sign on the front of the building in an area which is a common property.  The shop owner contended that the building's management company approved the hanging of the sign...

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