Afik News 293 09.10.2019

A company shareholder and director signed, personally and on behalf of a company, a cross-guarantee for a sibling company. After selling the company shares, the guaranteed company became insolvent and the guaranteeing company refused to uphold the guarantee as it was not given notice that the guaranteed company was in default on its obligations. The […]

A shareholder contended, inter alia, that another shareholder had taken over his shares and recorded them under his name in the Companies Registrar without any authority. The Court accepted the claim stating, inter alia, that the transfer of shares was in beach of the company’s bylaws and the law and is therefore invalid. Under Israeli […]

Franchisees of a chain of fruit and vegetable retailers canceled the franchise agreement, contending, inter alia, that the chain breached its commitment to provide them with a franchise support, including professional training, employee training, professional advice on business management and more. The Court held that the franchisees were entitled to terminate the agreement and the […]

A terminated employee contended that his salary slips did not reflect his actual high salary and that no provisions were made to pension funds although they were deducted from his salary. The Court accepted the employee’s demand for compensation. An employee who contends to have received a salary other than that appearing in the pay […]

A contractor refused to pay compensation to apartment purchasers for a delay of about eight months in delivery of possession, inter alia, because the purchasers requested many changes to the apartment. The Court accepted the claim and held that the contractor must compensate for late delivery. A contractor who delivers an apartment to the purchaser […]

Although inheritance may sometimes be some economic consolation, which is of course minimize compared to the huge personal pain, the heirs are often forced to deal with a cold reality in the most painful era, dealing with the deceased creditors or liabilities, neglection of which may result in debt collection, foreclosure, fines, interest and so […]

A bank decided unilaterally to close the accounts of three companies and their shareholders because of “red flags” that caused it to fear that these accounts were involved in money laundering. The bank gave a 14-day warning to the customers. The Supreme Court held that the bank was allowed to close the account. A banking […]