Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeA CEO who acted without authority may obligate the company but be personally liable to the company
Business, Corporate and Joint Ventures
Dispute Resolution
A middleman orally agreed with the CEO of a company on a commission for a business connection and the CEO later confirmed by phone that he acted on behalf of the company. However, later the company contended that the CEO did not have the authority to obligate it and repudiated the agreement. The Court obligated […]
In certain cases a shareholder or a director may file a claim on behalf of the company
Business, Corporate and Joint Ventures
Dispute Resolution
One of the founders and a minority shareholder in a company sought to file on its behalf a claim against the control holders contending that they took from the company a novel idea for the development of a digital loudspeaker and transferred it to a company newly incorporated by them – Audio Pixels Ltd. – […]
A contractual obligation of non-compete must be made by an explicit agreement. Read more at: http://www.afiklaw.com/updates/8840
Commercial, Banking and Financial
Dispute Resolution
Parties entered into a joint venture agreement under which one of the parties committed to bring its customers to the other. Later, that one established a new company dealing in a similar field. The Court rejected the claim filed for breach of non-compete obligation and held that there is no general limitation on competition under […]
Had it not had three sides it wouldn’t have been my duck!
Commercial, Banking and Financial
International Transactions and Dispute Resolution
Real Estate
It is said that every story has three sides: your side, my side, and the truth. Sometimes transactions also have three different sides/stories: the story written in the agreement, the story the parties actually intended to write, and the story that the Court later decides to be the real story. Like any good novel (especially […]
Raising of capital by a company from its shareholders need be for the benefit of the company, equal and fair to all shareholders
Business, Corporate and Joint Ventures
Dispute Resolution
To finance a procedure against a minority shareholder of a company, a decision was passed to obligate the shareholders to invest funds. The Court accepted the motion of the minority shareholder and declared the decision to raise capital invalid. When a company requires funding, the decision from which source to receive the funding is a […]
A realtor is entitled to commission only if he had the client sign an order to perform an act of brokerage
Real Estate
Dispute Resolution
A realtor introduced a seller to a potential apartment purchaser and a sale purchase agreement was signed. The agreement between the realtor and the seller was oral and set that she is entitled to a commission as customary in the market. Later, the seller denied such an agreement. The Court rejected the realtor’s claim for […]
An employer must act to prevent sexual harassment at the work place
Labor Law and Immigration
Dispute Resolution
An 18 years old kid who worked at a pizza place was sexually harassed by her employer, including by obscene acts, after the second of which she did not return to work and suffered severe emotional distress that required mental treatment. The Labor Court held that the employer is to compensate the employee by ILS […]
