Afik News 254 11.04.2018

Afik News 254 11.04.2018


Legislative Updates

March 24, 2018

A shareholder who undertook to pay a company debt may endorse to their account company cheques

Employees demanded that shareholders of a liquidated company be personally liable for payment of social benefits because the shareholders endorsed to their account cheques of the company to the shareholders' accounts before the full liability of the company is paid to the employees...

March 26, 2018

Failure to sign an amended Founders Agreement does not damage its validity unless the non-signature was intentional

A group of friends set up a joint venture to locate turbulences during flight. The signed founders agreement set that the application will be based on software developed by one of the entrepreneurs, but the company is granted unrestricted use of the software and ownership of all products produced therefrom. The agreement was later amended to add another entrepreneur but not signed and the ...

March 21, 2018

One who participated in an arbitration may not later contest the power of the arbitrator

A dispute between partners in a diamonds trading business was settled by an arbitrator in accordance with an arbitration agreement. One of the partners sought to void the arbitral award, inter alia, contending that the arbitration was conducted in lack of authority...

March 23, 2018

A “back to back” clause will not apply when the non-payment to the main contractor is not related to the sub-contractor

International companies engaged in the provision of energy services contracted with an Israeli company to serve as a main contractor for the construction of a natural gas-based power station. The contractor contracted with a subcontractor to carry out earthworks, infrastructure and roads in the project with the calculation to be by way of a measurement agreement with a payment demand at the end of...

March 25, 2018

A protected tenant may be entitled to compensation as a condition for evacuation even if in breach of agreement

An apartment seller terminated on a Friday the sale transaction by a laconic letter based on non-payment of consideration on time, ignoring the requirement of the agreement to give a prior notice and on Saturday already sold the apartment to another purchaser...

March 18, 2018

As long as a winner of a tender did not fulfil all tender conditions the agreement with it does not materialize and the tender process does not end

An entrepreneurial company won a tender to lease land for construction in the area of ​​the Be'er Sheva municipality. When it encountered difficulties with the municipality, it turned to the District Court, claiming that it was a lawsuit on the interpretation of a contract and not in tenders’ law...