Afik News 277 27.02.2019

Afik News 277 27.02.2019


Legislative Updates

January 13, 2019

A CEO who acted without authority may obligate the company but be personally liable to the company

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...

February 12, 2019

In certain cases a shareholder or a director may file a claim on behalf of the company

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. – which in the meanwhile was registered for trade (by a mother company wholly owning it) on the...

January 13, 2019

Raising of capital by a company from its shareholders need be for the benefit of the company, equal and fair to all shareholders

To finance a procedure against a minority shareholder of a company, a decision was passed to obligate the shareholders to invest funds...

February 6, 2019

A contractual obligation of non-compete must be made by an explicit agreement. Read more at:

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...

December 26, 2018

An employer must act to prevent sexual harassment at the work place

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...

January 6, 2019

A realtor is entitled to commission only if he had the client sign an order to perform an act of brokerage

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...