Published in Afik News 427 27.11.2024
A CEO submitted a letter of resignation to the board of directors or, alternatively, conditioned the continuing of his position in certain terms. Upon receiving the letter the board decided to dismiss him.
The Court held that the dismissal was lawful. The board of directors has the authority, by law and under the bylaws, to decide on the dismissal of the CEO. Here, the investors who appointed the directors sought to retain their power and veto the appointment and dismissal of the CEO, while the CEO did not retain a similar right. Further, whether the dismissal was made following the letter or not, because the board meeting was duly held, the dismissal is also lawful.