Publication in the The Marker newspaper (journalist Assa Sasson) on an oppression of the minority claim filed by attorney Boaz Ben Zur and the office of Afik & Co. (attorneys Doron Afik and Omri Barkan) in the "Bait Vegag" company dispute
[Hebrew Only]
Alona Bar-On's partners in the real estate business: "Deirded house and roof for business loss"
In 2013, Bar-On and its partners raised NIS 250 million from institutional entities for the real estate fund, which focuses on NAP 38. ■ In the lawsuit filed by the partners, they claim: Bar-On has degraded the company, pointed out decisions that discriminate against them, It is hardly present in society ■ Home and roof fund: "Cynical use of the justice system"
07:02
2017-03-15
By: Asa Sasson
At the beginning of last week, Eyal Giclter and Sagi Klein filed a lawsuit against Alona Bar-On, their partner in the real estate company Beit Vagag. Because Bar-On caused their dismissal from the company illegally and in violation of the agreements, Bar-On won a bid yesterday for the acquisition of the newspaper "Globes".
The plaintiffs, represented by attorneys Boaz Ben-Tzur and Doron Afik, write that "the company's activities have deteriorated to the point of almost cessation and loss of businesses and activities, instead of dealing with projects. Alona has taken on jobs and tasks outside the company's business, and she is hardly present at it. "Key people have resigned and are resigning, suppliers and contractors are collapsing and stop working with the company, apartment owners in projects are leaving the company, and all this while presenting false representations to investors in the fund."
Beit VeGag specializes in the management of real estate funds that deal with NAP 38 (the national outline plan for strengthening existing buildings against earthquakes). At the end of 2013, the fund raised approximately ILS 250 million from institutional entities in Israel, including Phoenix, Excellence, IBI and members of the old pension funds. This is a non-marketable fund for five years, which will invest in about 30 projects with a total value of NIS 1 billion, through which about 500 apartments will be rebuilt in Tel Aviv, Raanana, Givatayim, Ramat Gan and Ramat Hasharon. These apartments are to be sold at an average price of NIS 1.5 million per apartment,
The fund relies on the fact that more than 800,000 apartments in Israel need renewal and reinforcement against earthquakes, with about half of them being in areas with economic viability for the implementation of NAP 38. The plaintiffs, with Bar-On and several other partners, hold shares in House and Roof.
The lawsuit states that Gicelter and Klein "led the company from its inception, from the stage of initiating and raising investment funds, through signing and accompanying the company's first projects, which are already populated by tenants (from these projects the company and its investors have already benefited), to deals with dozens of existing and future projects. The company and built it, on its various departments, recruited and trained dozens of employees, contracted with hundreds of suppliers, established work practices, and turned the brand into a leading brand in the field of urban renewal. In Israel in the field of urban renewal. The choice was made thanks to the company's performance before Alona took office, and before the company began to lose its reputation due to Alona's actions and assistance. "
The plaintiffs further state that "for the first four years after the establishment of the company, the applicants worked without pay, utilizing all their savings, and even financed salaries for employees, furniture and office equipment for the company. The applicants also agreed, in April 2014, after four years of activity. The management fee that they were promised to receive according to their service agreements, and against the expected profits from the fund when the investors enter. "
In April 2014, Bar-On was appointed chairman of Beit Vag, and in September 2014, she was also appointed CEO of the company (without defined powers), with the company's management continuing to be carried out in practice, just as it was done before the appointment, jointly by all partners.
The plaintiffs further note that "since October 2016 until today, Bar-On has ceased to reach the company, and it has been engaged for most of its time in managing struggles in Globes, which have been extensively covered in the media, and it seems that it is also managing the newspaper for itself and investors. "Managed by the company's full management team, Bar-On prevented those seeking to enter the company's offices."
The letter of claim further states that since the beginning of 2016, discussions have taken place between the parties on the adjustment of the corporate governance structure in the company to the legal requirements, following the retirement of one of the partners. The company hired the services of several organizational consultants (brought in by Bar-On) for this purpose. The consultants' recommendations were to regulate the corporate governance of the company on an equal and functional basis. Following the implementation of the consultants' recommendations brought by Bar-On to the company, a dispute broke out between the parties, as Bar-On "seeks to assume totalitarian management powers and refuses to implement any advice, recommendation or demand to act as required by law, and as Zvika Rubinstein and Ron Shachar." ", As well as Gicelter and Klein and Itai Hoz requested and the consultants recommended."
The plaintiffs note that since the company's inception until mid-2016, no board meetings or general meetings have been held at the company (except for one board meeting in September 2014, at which Alona was appointed CEO).
The indictment further states that Bar-On "began to act in a systematic manner to harm the applicants. Completely excludes GiCelter and Klein from the company and Itai Hoz (who owns 23.75% in House and Roof) from any influence as directors of the company. "She is alone in the room and 'votes' alone on the 'decisions.'
The plaintiffs also present the transcripts of the conversation with the organizational consultant Ofer Levy, who was brought to the company by Bar-On herself: "She is unable to maintain a partnership (...) Think I would take