Afik News 257 23.05.2018

Afik News 257 23.05.2018


Legislative Updates

May 7, 2018

In an in rem claim to execute a maritime lien regarding a ship, the actual litigant is the ship’s owner

A German company filed an in rem claim to the Maritime Court against a ship that owed it money for the supply of fuel (the proceeding was filed in Israel because the ship was detained in the Ashdod Seaport). It should be noted that a Court in Germany held in a conclusive judgement that the owner of the ship (and not the ship itself) is not obliged to pay the company. What is the law...

March 22, 2018

A historic real estate transaction may be recognized even in lack of a writing

A land transaction was executed about 60 years ago without a written document. The holders of the land demanded to be recognized as the legal owners of the land despite lack of a written proof...

April 24, 2018

A non-Jew who was adopted by a Jew and who maintains a meaningful relationship with him may be entitled to Israeli citizenship

A Jew married a non-Jewish in Uzbekistan and adopted her son who was close to 18 at the time.  The authorities in Uzbekistan registered the son as Jewish but when he sought to receive an Israeli citizenship he was refused...

March 23, 2018

Payment for non-compete that enables continue of employment will be classified for tax as revenue

A company sold its business operations and entered into a non-competition agreement with some of the managers, including a one-time payment for the non-competition for each of them...

April 23, 2018

A general manager is to report to the board of directors any material unusual issue

A general manager of a company manufacturing and marketing construction products discovered that one of the two shareholders (each holding 50% and also acting as a director) is using company business data and trade secrets and hired an attorney to file a claim against him by the company...

April 26, 2018

A derivative claim for the benefit of a shareholder and not for the company will not be approved

A company owned by two brothers was ran for 30 years as it does not exist, with its only asset being the right to register in the future as an owner of a store.  For years the company has no income tax file and a family partnership reported revenues from leasing out of the store.  In the context of a family dispute, one of the brothers sought to file a derivative claim on behalf of the company ...

May 6, 2018

A company able to pay its debts in the short run may distribute dividends with approval of the long-term creditors

A private technology company wanted to distribute dividends to its employees, who are also its main shareholders. The Company can meet its liabilities for the short-term, but the dividend distribution raises concerns about the ability to repay its long-term liabilities...