Afik News 274 16.01.2019

Afik News 274 16.01.2019


Legislative Updates

November 7, 2018

A holder of 25% of the shares of a company may be personally liable for its city tax debts

A municipality demanded payment of city tax from a shareholder of a company that operated a laundry, but ceased its activity...

January 1, 2019

An arbitration agreement obligates only to the parties thereto and cannot be applied on a control holder of a party

In 2014, a company entered into an agreement to distribute Huawei products in Israel and the Palestinian Authority, which included a clause stipulating arbitration in Italy. In 2016, the controlling shareholders of the company formulated agreements with Huawei on distribution terms, including minimum quantities, but a new agreement was not signed. When Huawei terminated the agreement due to non-...

December 19, 2018

A franchising agreement also includes by its nature the use of a name and no separate agreement is required

The owner of a Hummus restaurant orally agreed with a franchisee who wanted to open a restaurant in the same name that the franchisee would, against payment of a fee, be able to use the knowhow as to preparation of the hummus and would be able to open a restaurant under the same name. The restaurant owner later contended that the franchisee was to pay an additional sum for the right to use the ...

December 9, 2018

A breach of an employee’s commitment to a minimum employment period will not always entail reimbursement by him of his training expenses

An employee signed an agreement according to which, if he does not complete three years of employment, he will reimburse the company for his training expenses. Shortly before completing the period pursuant to the agreement the employee was resigned and in his final wage the company offset the debt due to his training expenses...

December 6, 2018

A bank must provide services to its customers, unless its refusal to provide a service is reasonable

A bank decided unilaterally to close the accounts of three companies and their shareholders because of "red flags" that caused it to fear that these accounts were involved in money laundering. The bank gave a 14-day warning to the customers...

December 25, 2018

Building rights on the roof of a condominium belong to all residents even if the roof was attached to the upper apartment

The owners of a condominium top-floor apartment, in which the condominium bylaws set that the roof area is attached to the apartment, contended that all building rights on the roof under the new urban building plan belong to them and not to all apartment owners...