Afik News 275 30.01.2019

Afik News 275 30.01.2019


Legislative Updates

January 9, 2019

A shareholder can not expect the company’s articles not to change unless he agrees to the change

A company's articles of association included an arbitration clause, but a shareholder contended that the clause does not apply to her because it was included in an amendment to the articles of association that was adopted after she joined the company...

December 30, 2018

The general assembly of a sport association may decide on any matter, but is subject to the administrative reasonableness requirement

An examination by an accounting firm appointed by the Ministry of Finance for the Israeli Handball Association raised serious suspicions of corruption and led to several arrests in a case known to the public as the "Faina Kirschenbaum" case. Following the arrest of the association's chairman, a new chairman was elected who replaced many people in the association. After about a year, the ...

December 8, 2018

A performance guarantee is intended to ensure the performance of the work and not its quality or the period of inspection

A subcontractor completed bridges construction work, but the main contractor was not willing to return the performance guarantees given to it by the subcontractor, contending that this was a back-to-back relationship and thus, until the main contractor's execution guarantees were not returned to it from the customer, the main contractor was not obligated to return the execution guarantees of the ...

January 6, 2019

A subcontractor may not file a claim against the customer absent a direct agreement between them

A subcontractor entered into an agreement with a main contractor to carry out infrastructure works for a municipality but did not receive all of its money. The subcontractor demanded payment directly from the municipality and contended that the main contractor assigned to the subcontractor its rights to funds from the municipality...

January 10, 2019

Commencement of a new employment during prior notice period stops the right to salary

An employment agreement stipulated that in the event of termination the employee is entitled to a 90-day prior notice. During the prior notice period the employee commenced a new employment...

January 16, 2019

A long-standing agreement between tenants in common may create exclusive usage rights in the land

A parcel of land was held in common by two families and separated by a fence for dozens of years.  At some point one of the families contended that the other’s part is bigger and thus the equality between tenants in common was jeopardized...