Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeThe business judgement rule prevents intervening with a board decision even if it may be erroneous
Business, Corporate and Joint Ventures
Dispute Resolution
A shareholder of a company that develops aviation products demanded that the company’s board of directors submit a derivative claim against a third party but the board refused. The Court rejected the claim and held that the business judgement rule applies in Israel and as long as the decision of the board of directors was […]
So how do you “inflate” a claim against a prior employer? Easily!
Labor Law and Immigration
Dispute Resolution
We often encounter the filing of inflated claims by employees against their former employers. While for many contentions there is no dispute that if it turns out that they are baseless then the claim will be dismissed, there is one contention that could turn the table – breach of the duty to give notice to […]
Issuance of options in a foreign company to employees of its Israeli subsidiary may be deemed an income of the Israeli subsidiary
International Transactions and Dispute Resolution
Taxation and Government Incentives and Funding
Business, Corporate and Joint Ventures
An Israeli company wholly owned by a US company acted as a research and development center for the parent company in exchange for reimbursement of costs with a defined profit (Cost Plus model). In addition, the parent granted the employees of the Israeli subsidiary options to purchase shares of the parent company. The Tax Authority […]
An individual guarantor shall be exempt from the guarantee if the guarantee does not stipulate a fixed amount
Commercial, Banking and Financial
Business, Corporate and Joint Ventures
Dispute Resolution
A bank demanded immediate repayment of debts of a company which ceased its activity and demanded the funds also against the signatory of the company who signed a guarantee. The Court held that the law sets special defenses for an individual guarantor – one who is not a corporation or an interested party in a […]
An arbitration award given against a company that entered liquidation will be reviewed by the liquidator as any other debt
Business, Corporate and Joint Ventures
Dispute Resolution
A company and a third party held arbitration proceedings but prior to the company paying its debt it entered into stay of proceedings status. The Supreme Court held that after a company enters liquidation proceedings (or a stay of proceedings) the authority to clarify a debt claim is transferred to the trustee or liquidator. Within […]
A receiver may not act to convince purchasers to make low offers in order to finalize the sale as soon as possible
Intergenerational Law (Trusts, Estates, Lasting Powers of Attorney, Parenting)
Commercial, Banking and Financial
Dispute Resolution
For the purpose of realizing an apartment two lawyers were appointed as receivers to carry out an auction and one of them approached a bidder to make a bid considerably lower than the appraiser’s assessment of the apartment telling him that it is intended to quickly finalize the sale. The Court accepted the request to […]
Tips received by restaurant employees are salary including for purpose of tax payment and employees benefits
Labor Law and Immigration
Taxation and Government Incentives and Funding
Dispute Resolution
Many employers in the restaurants industry do not pay the service providers (waiters and others) but only pay the minimum wage to the extent that the “tips” the waiter receives do not reach that amount. Amounts above the minimum wage reach the waiter, but are not reported to the Tax Authority. The National Labor Court […]
