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As part of a trend to make it easier to do business in Israel, the Israeli government recently adopted amendments to regulations under the Israeli Companies Law - By Partners Chaim Friedland and Ari fried.
Recent Amendments to Companies Law Regulations
Make Doing Business in Israel More Friendly
As part of a trend to make it easier to do business in Israel, the Israeli government recently adopted amendments to regulations under the Israeli Companies Law.
Israeli companies whose shares are listed for trading on Nasdaq or the NYSE can now, subject to certain conditions, opt out from the Israeli Companies Law requirements to appoint “external directors” and the rules regarding the composition of its audit committee and compensation committee. Opting out would also relieve the company from the Israeli Companies Law restrictions regarding who can participate in meetings of the audit committee and compensation committee, limitations on directors’ compensation and other matters. In order to opt out, the company cannot have a controlling shareholder, as defined under Israeli law, and must comply with U.S. rules (including NYSE/Nasdaq rules) applicable to domestic U.S. companies with respect to the appointment of independent directors and the composition of the audit and compensation committees. The amendment is based upon the principle that Israeli public companies should not be subject to additional burdens if the laws of the country where its securities are listed for trading provide adequate protections to investors.
In addition, commencing May 17, 2016, companies will be permitted to file their articles of association and documents creating security interests in English with the Israeli Registrar of Companies. The English document must be accompanied by a convenience translation in Hebrew.
For further information on these developments, please feel free to contact:
This publication is provided for general information purposes only. It is not, and does not attempt to be comprehensive in nature. It should not be regarded as legal or other advice.
In their article published by Chambers Global, Gur Y. Savir and Yoav Meer give an overview of recent developments in the Israeli economy, including major legislative amendments enacted by the government, such as those to the Companies Law and the “Anti-Concentration Law”, as well as other regulatory developments.
Eyal Raz and Yisrael Spero analyze the right of first refusal as used in the corporate realm and interpreted by the Israeli courts, specifically, with regard to the revocability of the right. The authors challenge the Israeli courts' existing legal position, arguing that an offer given within the framework of a right of first refusal does not justify an irrevocable offer mechanism.
The article analyzes the right of first refusal as it used in the corporate realm and as interpreted by the Israeli courts, specifically, with regard to the revocability of the right. Authors Eyal Raz and Yisrael Spero challenge the Israeli courts' existing legal position, arguing that an offer given within the framework of a right of first refusal does not justify an irrevocable offer mechanism, given the right's underlying rationales and its particular attributes.
The section prohibiting compensation and insurance of adminstrative enforcement proceedings is vastly critisized and needs to be amended.
Elite Elkon (Partner) surveys the major changes anticipated to take place in the Israeli Credit Market in a featured article in the prominent UK legal magazine - "The Lawyer"
Elite Elkon (Partner) surveys the major changes anticipated to take place in the Israeli Credit Market, mainly aimed to reduce concentration and to increase and diversify the sources of credit for retail and SMEs, in a featured article in the prominent UK legal magazine - "The Lawyer". In her article, regarding financial law in Israel, Mrs. Elkon sheds light on the changes and new contemplated opportunities arising, including, among others, The Shtrum committees' recommendations to sell the major Israeli credit card companies held by the country's leading banks and easing the regulatory regime on payment card companies.
The purchase of "Supersal" stocks by Mr. Leo Noe prior to signing the document and receiving the control over the company is not necessarily illegal