Afik News 278 13.03.2019

Afik News 278 13.03.2019


Legislative Updates

February 22, 2019

Fiduciary duties of an officer of a company prohibit competition with the company or use of company business opportunities

In a company dealing with consulting and maintenance of "clean rooms" for laboratories, there were two shareholders, a majority and a minority. At some point the minority shareholder resigned from his position as a CEO of the company but remained a shareholder and a director. After his resignation, he opened a competing company in which he was the sole shareholder and director...

February 14, 2019

The default in case of filing a claim by a company is obligating it to deposit a guarantee for the expenses of the defendant

A company engaged in the design, production and marketing of emergency lighting products demanded an injunction relief preventing the marketing of a ceiling-mounted emergency lighting fixture that was misleading to a unique and innovative product of it, and thus infringed on its copyrights. The competitor demanded deposit of a guarantee for its expenses...

January 29, 2019

Transfer of shares that does not meet the formal requirements may still be valid

A director and shareholder in a company notified the company of his resignation and transfer of shares to another and the company reported that to the Registrar of Companies. Later, the shareholder contended that the actions should be declared null and void because the documents he signed were not those required under law...

February 26, 2019

Unclear concepts in the agreement will be interpreted according to its purpose, business objective, its content and legal and economic logic

Franchisees of a chain of fruit and vegetable sales, which called for a direct purchase from farmers to reduce costs, announced the cancellation of the franchise agreement after discovering that the prices of products offered by the chain were not competitive, partly because some of the products were purchased from wholesalers and not directly from farmers...

February 24, 2019

An employee resigning due to sexual harassment at the workplace is deemed dismissed and entitled to severance pay

An employee was harassed at the workplace and informed the employer. The employer did not act to stop the harassment and the employee decided to resign...

February 17, 2019

Exercising an option subject to conditions does not constitute an exercise

A lessee sent notice of exercising an option to extend the lease period for three additional years, but in the notice stated that the option is subject to certain commercial terms to be granted by the lessor to a replacement lessee...