A claim against an officer of a company will be barred if it does not include specific details of the grounds for a personal liability

July 27, 2020

In the absence of a building permit, the winner of the tender was forced to dismantle buildings built according to a tender published by the Economic Company for the Afula Municipality, for the planning and construction of buildings as part of the restoration project of the Turkish train station and converting it to a recreation center. The winner also demanded compensation from directors of the Economic Company for their negligence.
The Court outright dismissed the lawsuit against the officers. The business judgement rule creates in favor of officers in an initial “presumption of integrity” under which there will be no liability for an officer unless acted in bad faith, received an uninformed decision, acted in conflict of interests or similar grounds. A claim for direct liability of an officer, not by virtue of being an officer, may only be met in special circumstances in which there are circumstances that goes beyond the normal activity of the officer in the company. When a general claim is filed against officers in the absence of factual detail that will show grounds for personal liability the claim against the officer may be dismissed outright. Here the claim was formulated in a general manner and without detailing what exact facts to create personal liability and was therefore dismissed outright.