Afik News 271 05.12.2018

Afik News 271 05.12.2018

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Legislative Updates

November 7, 2018

Selling an activity of a company does not cancel obligations under existing agreements

A company entered into an agreement for the purchase of 1,500 tons of frozen vegetables from another company. After receiving approximately 900 tons, the entire activity was sold to a third party and it was no longer able to supply the rest of the goods...
October 20, 2018

In a closely-held company that violated employee rights it is more plausible to pierce the corporate veil

An employee was employed as a cook in an events venue, when every few years she was passed to be employed by another company of the family.  After about 10 years the employee resigned due to her medical condition and demanded her rights both from the company which employed her and from its shareholder...
October 17, 2018

The use of money from customer trading deposits for current payments may cause the corporation’s veil to be raised

An investor deposited money in the company for a guaranteed yield. The company did not inform the investor that regulatory changes were expected in the market and when these went into effect, it stopped its activity. Moreover, the company did not separate the money from the deposit into its own money and its shareholder, who was also its manager. After the cessation of its activity, he also used ...
November 1, 2018

A memorandum of understanding may be binding even without execution of an elaborated agreement

A landowner and entrepreneurs signed a short three-page document headed “memorandum of understanding” (MOU) stating that an elaborated contract containing material commercial conditions will be signed within 60 days. An elaborated contract was never signed but the entrepreneurs sought to see the MOU as a binding one...
November 1, 2018

A company may fire a disabled employee based on legitimate considerations

An employee with a significant medical disability, which did not affect his work, worked as a security officer of a company. It was decided to cancel the security officer position and because there were no other relevant positions for the employee in the company, the employee was called for a hearing, after which it was decided to terminate his employment...
September 16, 2018

One may not install an air condition unit on the external wall of a neighboring apartment

Tenants in a condominium installed an air condition system on the outer wall of their neighbors' apartment...
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