Afik News is the bi-weekly professional magazine of Afik & Co. Attorneys and Notary
SubscribeWhen the board of directors opposes a lawsuit in the company’s name a shareholders may have a right to sue on its behalf
Business, Corporate and Joint Ventures
Dispute Resolution
A shareholder sought to sue a management company in the company’s name because he contended that the agreement with it was unduly extended and later ratified by the company’s board of directors. The shareholder did not contact the board of directors before filing the claim. The Court held that the shareholder may sue on behalf […]
In a derivative suit at a public company the demand for a non-Israeli company claimant to file security for costs will be more lenient
A foreign company which is a shareholder in an Israeli public company sought to file a derivative suit on behalf of the company which aledgedly compromised in a settlement not in the best interests of the Israeli company. The Supreme Court rejected the motion of the Israeli company for the foreign corporate claimant to deposit […]
A will made under unfair influence of one of the heirs shall be deemed invalid
Wills and Estates
Intergenerational Law (Trusts, Estates, Lasting Powers of Attorney, Parenting)
Dispute Resolution
A couple drafted a mutual will, in which it was set that when one of them passed away, the other would inherit him, and upon his demise, their 8 common children would inherit. When the husband passed away, one of the sons took advantage of the distance of the other children and the mother being […]
Equal and Equal More – Unequal Corporate Board Voting Power
Business, Corporate and Joint Ventures
Unlike other governance systems where, as the residents of Animal Farm (George Orwell, 1945) discovered, everyone is equal but… some are more equal than others, one of the cornerstones of democracy is absolute equality before the law. But, what about voting rights in a company’s board of directors – will it be possible for one […]
In order to be able to claim expectation compensation in addition to liquidated damages this must be explicitly stated in the agreement
Business, Corporate and Joint Ventures
Dispute Resolution
A tender holder sought to receive expectation damages, which are damages in the amount of profit had the agreement been enforced, from a tender winner who breached its obligations under the tender, even though it had already forfeited the bank guarantee that the tender winner had provided. The Supreme Court rejected the tender holder contention […]
A memorandum of understanding for the sale of a residential house that does not include essential details for the transaction shall not be enforced
Real Estate
Dispute Resolution
Parties signed a memorandum of understanding (MOU) for the sale of a luxury house in Caesarea, in the amount of ILS 11 million (in which there is many valuable items), subject to signing an agreement. An agreement was never signed and the potential purchasers demanded to enforce the MOU, which they contending to be a […]
If there is a doubt an employment agreement will be deemed for an indefinite term
Labor Law and Immigration
Dispute Resolution
At the end of the employment period specified in the agreement, a human resources company ceased to employ a pregnant employee without applying for a work termination permit. The Labor Court accepted the employee’s contention for unlawful termination after determining that the employee was employed for an indefinite period. Israeli law prohibits an employer from […]
Generally who did not execute a bill of lading shall not be entitled to receive a lien on a vessel that caused damage to the cargo
Maritime, Aviation and Transportation Law
Dispute Resolution
An importer of oils contended that the ship’s owner is responsible for the damage caused due to a malfunction in the loading of the cargo, which caused the ship to transport only part of the cargo and therefore it is entitled to arrest the ship until the debt is paid. However, the bills of lading […]
