Afik News 272 19.12.2018

Afik News 272 19.12.2018


Legislative Updates

December 2, 2018

One may not purchase shares of a public company even if the insider information does not come directly from the company

A consultant of a shareholder in a public company purchased shares of the company just before the announcement of information about the intent of the control holder in the company to make a tender offer for all shares of the company, and sold them at a large profit shortly after the share price rose following the announcement. The consultant was charged with a criminal offense of using insider ...

November 11, 2018

In a company that is “a sort of partnership” the shareholders are required to have increased trust between them

In a company held equally by two shareholders, one demanded compensation from the other shareholder claiming that the other was stole company's money...

October 9, 2018

The transfer of activity from one company to the other in order to avoid the return of state grants is a fraud and will personally obligate the shareholders

In the 1990s, a diamond trading company received state grants to encourage export, which under certain conditions were required to be repaid. The company ceased operations at a certain stage and transferred its activity to a newly established sister company and did not repay the grant even though the terms for repayment were met...

November 1, 2018

A list of customers and suppliers will be recognized as a trade secret only if it has “added value”

A company employed a sales person who signed a confidentiality and non-competition agreement. Close to the termination of his employment, the employee set up a competing business, contacted suppliers of the company and published the same inventory as the company on a website that the employee established...

November 1, 2018

An employment agreement with a CEO requires approval by the board of directors

A CEO of a company demanded ILS 1,000,000 contending that he was orally promised a retirement bonus of such amount. The company refused to pay, contending that the parties discussed the grant as contingent on the completion of the purchase of the company by another preapproval by the board of directors...

November 18, 2018

Using a road for decades will not create an easement if it was originally made by agreement.

In a complex of buildings, the entrance path to an internal building has been, for many decades, through the second building, but the purchaser of the apartment to which it was attached blocked the passage...