Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeAn alarming picture regarding the manner of employing employees in not sufficient for piercing the corporate veil
Business, Corporate and Joint Ventures
Labor Law and Immigration
Dispute Resolution
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. The Labor Court rejected the claim and held […]
A passenger whose flight was canceled is entitled to compensation except in exceptional circumstances out of the control of the airline
Commercial, Banking and Financial
Dispute Resolution
A flight was canceled a short time prior to the scheduled time due to illness of a crew member. The Court held that for a flight that was canceled, passengers are entitled to compensation as stipulated by law. The exemption stipulated in the law provides three cumulative conditions – the circumstances of cancellation were out […]
An escrow agent for investment funds need not supervise the project and is exempt of liability once the money is released from the escrow
Real Estate
Commercial, Banking and Financial
Business, Corporate and Joint Ventures
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. The Court held that the […]
A management company of a building may not grant usage rights of the common property unless specifically approved by the apartments owners
Real Estate
Dispute Resolution
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. The Court held that a condominium’s house committee (or a management company in this […]
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
Business, Corporate and Joint Ventures
Dispute Resolution
Commercial, Banking and Financial
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. The Court rejected the claim and held that the Court should adopt the holding at Autostyle Plastics, Inc. 269 F. 3d 726, 750-751 (6th Cir […]
The right to a hearing applies also to a hired employee who has not yet started working
Labor Law and Immigration
Commercial, Banking and Financial
Dispute Resolution
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. The Labor Court held that the candidate should be regarded as an employee for the purpose of the duty of hearing, even if his […]
The Employer’s Responsibility to Prevent Sexual Harassment
Labor Law and Immigration
Sexual harassment in general, and sexual harassment at the workplace in particular, is a topic that has recently risen intensely to the public agenda. Israeli law establishes a series of actions that an employer must take in order to prevent sexual harassment and deal with events, and an employer may find itself responsible if it […]
