Minority shareholders in a family corporation contended oppression for the minority, after receiving their shares by inheritance from their father and after they were (for years) not active in the company's management. The shareholders demanded that the majority purchase their share in the company.
The Haifa District Court held that in the case of a family company with a small number of shareholders, even if no oppression was shown, the mere loss of trust among the shareholders may constitute grounds for a relief of separation between the shareholders. However, each case should examined under the nature of the interest and the nature of the matter, as well as the specific circumstances of the matter. In this case, the Court held that the minority shareholders will have a director on their behalf, that an objective expert will prepare an opinion regarding the probability of distribution of dividends and a meeting of the shareholders will be held at least once a year and information will be provided to the minority shareholders.