In a shareholders dispute one of the shareholders who also worked in the company notified a third party with whom the company was in contact on the dispute. The company dismissed the shareholder from his position.
In the shareholders dispute the Court held that notifying the third party with whom the company was negotiating of the dispute is a breach of the fiduciary obligations of the shareholders. The Labor Court added that as an employee the approach of the shareholder to the third party and notifying it of the shareholders dispute is breach of the fiduciary obligations as an employee even if it was not proven that actual damage was caused to the company. Moreover, the mere threat of an employee that it will cause damage to the company creates a situation in which the employer cannot be obligated to continue the employment and it may dismiss the employee without prior notice and without severance pay.