Afik News 270 21.11.2018

Afik News 270 21.11.2018

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Legislative Updates

October 25, 2018

A shareholder of a company that finished its business activity may not object to its liquidation

After a dispute broke between two shareholders of a company, the 49% shareholder moved for its liquidation. The company held a franchise of a coffee shops chain but finished its activity after losing a concession for managing coffee shops in the Ben Gurion Airport. The shareholder contended that the majority holder deprived such shareholder from all rights and took full control of the company...

October 23, 2018

An anti-dilution clause will not ordinarily applied in the event of allotment of options to employees or officers

Investors invested about USD 540,000 in a technology company that develops technologies in the field of cellular monitoring and positioning. The investment was made on the basis of representations regarding the company's status and profit forecast, and they agreed inter alia, to a 12 months full-ratchet anti-dilution mechanism in any diluting allotment of shares or options. Shortly after the ...

October 7, 2018

BMBY is the ideal solution for separation in a company equally held by two

A couple, each holding half of a company's shares of 80 employees, had a dispute, which led to problematic behavior in the company, including the non-payment of salaries, dragging employees into a conflict of trust between the shareholders, damage to the company's cash flow and bringing it up to the verge of a deficit despite a high turnover. This led to the appointment of an external special ...

November 4, 2018

A contract made for appearance sake only is void and establishes a right to restitution but a third party which acted in good faith will not be harmed

A fictitious transaction was signed between an employee and an employer, as if the employee sold an apartment to the employer who will take a mortgage on the apartment and the money will cover the employee's mortgage obligations while the rest of the funds may be used by the employer for his own purposes. The agreement stated that after a few years and after repaying the full mortgage, the ...

October 21, 2018

An employment agreement bettering the employee’s terms will be construed pursuant to the intent of the parties

A company that acquired another amended the employment agreements so that a manager that is dismissed or leaves due to material reduction of responsibility or position will be entitled to a grant. One of the managers quitted after he understood that there is an intent for a structural change, even though the company denied the intent and the change did not happen within such two years period...

October 15, 2018

Any partner in a land may demand the dissolution of the partnership.

Owners of rights in a lot on which an old house was built, with several cubicles serving together as a store, as well as a number of auxiliary buildings that serve as a warehouse for the same store, sought to dismantle the partnership in the land...

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