Afik News 283 22.05.2019

Afik News 283 22.05.2019

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Legislative Updates

May 9, 2019

A “straw man” registered as a shareholder is personally liable for company’s city tax debt

A company that ceased to operate left considerable city tax debts. The city demanded that the shareholder be personally liable for the company's debt, but she contended to be a mere “straw man” and not the real shareholder in the company and thus should not be personally liable for company debts...
April 22, 2019

Managers of a company that was voluntarily liquidated will be personally liable for debts even if the company disputed such

A hired travel agent resigned after suffering humiliating treatment and the Labor Court held that she is entitled to severance pay even though she resigned. During the legal proceedings, the company entered into voluntary liquidation and shortly after the employee was awarded compensation in her proceedings against the company, the company was liquidated...
May 5, 2019

A trademark of a non-Israeli company with an international reputation may be protected in Israel even if not registered in Israel

An Israeli company sought to use the trademark of a non-Israeli company with international reputation that with whom it has no connection or agreement, and registered a trade mark on the international company's brand name. The international company, which is not active in Israel, demanded the cancellation of the registered trademark even though many years passed since it was registered in Israel...
May 13, 2019

Not any party injured by breach of agreement has a lien on the assets of the breaching party but a linkage to the assets is required

A lessee of a showroom for kitchen and related goods did not pay rent and the lessor, upon evacuation of the property after the lessee entered liquidation proceedings, refused to release the showroom equipment contending that it has a lien over the equipment...
May 6, 2019

Abandoning an obligation to act to change a planning status of land may be deemed a breach of contract

An owner of a land designated for hotels sold part of the rights in the land and the contract stipulated that the owner undertakes to act to change the planning status of the land in order to enable the building of vacation apartments and the contract was conditioned on approval of the change of the planning status. The change was not confirmed, the agreement did not enter into effect and the ...
May 12, 2019

The maritime carrier and the ship are discharged from all liability in respect of the goods unless suit is brought within one year

A trader imported to Israel corn from the Ukraine by ship and insured the goods with maritime insurance. The goods were damaged by a fire that broke in the ship and the insurance company paid part of the damage to the trader and filed a suit for such amount against the ship. The trader also filed a suit against the ship but erroneously did this with a sister company and thus, after more than a ...
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