Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeUse of a company for fraud vis-à-vis the tax authority may personally obligate its shareholders
Business, Corporate and Joint Ventures
Dispute Resolution
A company that provides services of personal import of luxury vehicles has filed false statements to the tax authority regarding the value of the imported vehicles. Customers who were required to pay the tax differentials of hundreds of thousands of shekels demanded that the shareholders of the company be personally liable. The Court accepted the […]
Transfer of shares without consideration may be deemed a transfer in trust for the real beneficiary of the shares
Trusts
Intergenerational Law (Trusts, Estates, Lasting Powers of Attorney, Parenting)
Business, Corporate and Joint Ventures
A shareholder in a company transferred his shares to his girlfriend but later contended that the purpose of the transfer was to hold the shares in trust for him, although no trust agreement was executed. The Court held that the transfer of the shares was made as part of trust arrangement so that the girlfriend […]
When the language of a contract is vague in certain circumstances the Contra Proferentem rule
Commercial, Banking and Financial
Dispute Resolution
A class claim was filed against Mercantile Discount Bank for charging a “document editing fee” for the renewal or extension of bank guarantees, when in the framework of such, the amount of the guarantee is reduced. The Court approved the claim as a class claim. The starting point for any interpretation of a contract is […]
Exchanging a founders agreement draft between startup entrepreneurs may indicate previous oral understandings
High-Tech and Technology
Mergers and Acquisitions
Business, Corporate and Joint Ventures
Two entrepreneurs, who were also good friends, set up a startup venture and verbally agreed on the future distribution of rights between them. Two years later, at the drafting stage of a founders agreement, one withdrew from the original agreements and set up by himself a company for the venture. The Court held that an […]
A commercial agreement is to be construed in light of the business logic behind it
Commercial, Banking and Financial
Dispute Resolution
A company that borrowed funds in accordance with a loan agreement to which the shareholder was a guarantor did not meet the terms of the loan agreement and a settlement agreement was executed under which the shareholder signed a guarantee for part of the settlement amount.The Court held that the shareholder is a guarantor to […]
Elementary, my dear Holmes!
Capital Markets and Stock Exchange Regulations
Mergers and Acquisitions
Business, Corporate and Joint Ventures
An article dealing with the issue of at what stage do ambitious presentations designed to bring investors to a start-up cross the line and become a criminal misrepresentation. The article was written by Doron Afik, Esq. of Afik & Co., Attorneys and Notary.
Upon resurrection of a liquidated company the accrued annual Companies Registrar fee for the period in which it was liquidated need be paid
Business, Corporate and Joint Ventures
Dispute Resolution
A liquidated company was resurrected after 30 years to sell an apartment registered on its name. The Court held that a condition for resurrecting the company is the payment of dozens of thousands of shekels of annual fee debts to the Registrar of Companies for the years in which the company was liquidated. A company […]
