A lawsuit was filed against a company registered in the British Virgin Islands and documents were served a director and authorized signatory in it who was also the controlling shareholder. The director objected to the serving of the documents upon him and argued, among other things, that the company was stricken off and under local law in the British Virgin Islands one cannot sue it as such. The Court held, that the documents may be served upon the director and the contention that one cannot sue the company under the laws of the British Virgin Islands is a contention to be proven during the proceeding. Under Israeli law a company's status being stricken off does not preclude proceedings against it as long as not dissolved. Sticking off a company is a matter between the company and the registrar of companies, and does not preclude the company from suing or being sued by a third party, as long as the company was not legally liquidated (and then be considered as dissolved).
Related articles
Publishing a false factual statement during a live broadcast may give rise to defamation liability for the publisher, but not necessarily for the broadcasting channel
Privacy, GDPR, Confidentiality and protection of reputation
Dispute Resolution
Channel 14 host – Ynon Magal – contended during a live broadcast that Guy Pelege – a well-known journalist – did not serve in the IDF, or alternatively, was discharged after two days, whereas in fact, the journalist completed a full and lengthy mandatory and reserve military service. The Court partially accepted the lawsuit and […]
An intimate conversation in the workplace does not necessarily constitute sexual harassment
Labor Law
Dispute Resolution
A manager of a startup company sought to terminate the employment of the company’s human resources manager due to professional disagreements. In an attempt to smooth things out between them, the two held a personal conversation in which the manager shared his sexual orientation with the employee, as part of a personal conversation. The National […]
The Court may approve an arrangement between a public company and warrant holders, subject to due publication and the absence of objections
Capital Markets and Stock Exchange Regulations
Dispute Resolution
A public company sought to reach an arrangement with warrant holders to extend their exercise period and petitioned for relief. The Court granted the motion and approved the arrangements reached by the public company with the warrant holders. Under the Israeli law, a company wishing to reach a compromise or arrangement, including with warrant holders, […]
Making significant efforts may not be sufficient to exempt a director from criminal liability for operating without a business license.
Criminal Law
Business, Corporate and Joint Ventures
A director of a company that operated a business for several years without a business license, as required by law, was charged with liability for violating the law, despite the fact that he had made tremendous efforts and worked tirelessly to obtain a business license. The Court held that the director bears criminal liability because […]