Client updates
On June 2018, the Israeli government adopted decision no. 3859, entitled “The Reform in the Electricity Sector and Structural Change in the Israel Electric Corporation.” This decision constitutes a milestone in the long history of the IEC, which was incorporated in 1923.
June 6, 2018
Control of Financial Asset Services – Update
Control of Financial Asset Services – Update
Moments before the new supervisory regime over financial asset service providers came into effect on June 1, 2018, the Minister of Finance signed an order postponing the effective date until the earlier of the following: October 1, 2018, or the issue date of the Prohibition on Money Laundering Order that addresses financial asset service providers.
June 5, 2018
Justice Ministry Seeks to Empower Registrar to Strike Companies from Companies Register
Justice Ministry Seeks to Empower Registrar to Strike Companies from Companies Register
The Ministry of Justice recently published a new memorandum regarding an amendment to the Companies Law. This amendment seeks to authorize the Registrar of Companies to administratively strike off a company from the Companies Register.
June 4, 2018
Israeli Court Scrutiny Over Decisions of a Board of an Israeli NASDAQ Traded Company in a Proxy Fight
Israeli Court Scrutiny Over Decisions of a Board of an Israeli NASDAQ Traded Company in a Proxy Fight
Recently, a four month proxy fight over control of an Israeli incorporated NASDAQ traded company was settled, following a series of proceedings held before the Tel Aviv District Court. At a crucial juncture, the Tel Aviv Court was asked to issue a temporary injunction over a transaction initiated by the board, which included a highly dilutive (24.9%) issuance of shares.
Recently, the Knesset approved a private bill that expands the scope of the “Spam Law.” The amendment is aimed at preventing the phenomenon whereby messages not necessarily commercial in nature are being sent to the general public, mainly through a robo-call system.
May 21, 2018
Israeli Supreme Court Rules: Option Allotment Expenses Must Be Included In The Cost Base Calculation
Israeli Supreme Court Rules: Option Allotment Expenses Must Be Included In The Cost Base Calculation
The Israeli Supreme Court recently ruled a judgment on the matter of high-tech companies Kontera Technologies Ltd. and Finisar Israel Ltd. The facts underlying this judgment are relevant to many technology and startup companies in Israel engaged in RD services with their foreign parent companies, and which their revenue is being calculated using a Cost-Plus method.
This month, an Israeli district court deliberated a motion for an interlocutory order against Bank Hapoalim. The order would obligate the bank to accept the transfer into a customer's account of money that constituted proceeds from a sale of digital coins transacted outside of Israel.
According to a ruling handed down recently by the Israeli Supreme Court, when a real estate asset is sold before the seller enters bankruptcy proceedings, and the seller has not paid the betterment tax, the local council is not obligated to grant the buyer approval for registering the property under his name. Thus, the buyer will be required to pay the betterment tax.
April 29, 2018
Precedent Set: ‘Business Judgment Rule’ Also Applies to a Board Resolution on Filing a Derivative Suit
Precedent Set: ‘Business Judgment Rule’ Also Applies to a Board Resolution on Filing a Derivative Suit
The Israeli Supreme Court has set a precedent by ruling that the Business Judgment Rule should also be applied to a company’s board of directors when it is deciding whether or not to file a derivative suit.
April 22, 2018
Tel Aviv Stock Exchange Launches New Index: TA-Industrials
Tel Aviv Stock Exchange Launches New Index: TA-Industrials
On March 23, 2018, the TASE board of directors approved the launch of a new index in conjunction with the Ministry of Economy and Industry.
April 16, 2018
April 2018 News Flash – Employment Law
April 2018 News Flash – Employment Law
New amendments to the Hours of Work and Rest Law regarding night work and the general permit to engage employees in overtime work.
April 8, 2018
Law Reducing the Use of Cash
Law Reducing the Use of Cash
The Knesset recently approved the Law for the Reduction in the Use of Cash. This law imposes bans and restrictions on the making and receiving of payments using cash and checks at the sums therein prescribed.
March 21, 2018
Extension Order Shortens Work Week
Extension Order Shortens Work Week
The Israeli Minister of Labor, Haim Katz, has signed lately an extension order shortening the work week in Israel. According to the extension order, the work week will be shortened from 43 hours to 42 hours, without any reduction of pay.
Recently, after initial approval by the Finance Committee, the Knesset has passed a temporary order to the Income Tax Law with regards to deduction of issue expenses. According to the law, the expenses related to issuing the shares of companies and partnership participation units on the Tel Aviv Stock Exchange (TASE) will now be recognized as expenses for tax purposes.
March 8, 2018
A Reform in Israel's Insolvency Laws
A Reform in Israel's Insolvency Laws
Recently, the Knesset has passed the Law of Insolvency and Economic Rehabilitation – which is aimed at updating the law on insolvency currently in effect in Israel. The Law will take effect in 18 months from now.
February 28, 2018
The Supreme Court: Digital Currency Companies Can Continue Operating Through Bank Accounts
The Supreme Court: Digital Currency Companies Can Continue Operating Through Bank Accounts
The Israeli Supreme Court ruled in favor of Bits of Gold’s motion and issued a preliminary injunction that prohibits the bank from restricting activities relating to bitcoin trading in the company’s account.
February 19, 2018
Supervision of Service Providers Engaging in Digital Currencies
Supervision of Service Providers Engaging in Digital Currencies
While some uncertainty exists with regard to the regulatory regime that applies to public offerings of digital coins (ICOs), in the area of services related to digital currencies, regulations are expected to come into effect on June 1, 2018, within the scope of the Control of Financial Services Law.
February 18, 2018
Terminating an Ongoing Transaction Puts an End to Advertisements
Terminating an Ongoing Transaction Puts an End to Advertisements
On February 2018, the Knesset passed Amendment 66 to the Communications Law. The legislative amendment, colloquially known as "the Spam Law", prescribes that when an ongoing transaction is terminated, a dealer will be prevented from continuing to send advertisements to the former customer, even without the consumer being required to send notice that he is opting out.
February 15, 2018
Tax Authority Defines Rent Earned from Leasing 10 Apartments or more as Business Income
Tax Authority Defines Rent Earned from Leasing 10 Apartments or more as Business Income
The Israel Tax Authority (ITA) recently published a draft circular for public comment on the issue of classifying residential rent income. The ITA states that, according to its reasoning, income from the leasing of 10 or more apartments should be deemed business income.
February 11, 2018
February 2018 News Flash – Employment Law
February 2018 News Flash – Employment Law
New updates regarding safety violations in corporations and change in the retirement age for a person whose child has died.