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Barnea: Representing 120 Apartment Owners in Pinui-Binui Project against Three Recalcitrant Owners

Lawyers from our firm’s Real Estate Department, are advising apartment owners in a residential complex designated for pinui-binui in Herzliya. They represented a group of about 120 apartment owners in court against three recalcitrant owners who are objecting to the project due to their demand for higher recompense from the contractor. The court made the extraordinary decision to order the recalcitrant owners to pay NIS 7.8 million in compensation (NIS 2.6 million apiece). In addition, each recalcitrant owner was ordered to pay NIS 20,000 for legal expenses.

Categories: Real Estate | Real Estate Litigation | Urban Renewal

Negotiating Tenders – Podcast with Ronit Niederman

Ronit Niederman, a partner in our firm’s Tenders and Projects Department, was invited to be a guest on the Israeli Association of Corporate Counsel’s podcast “ACC On the Road.” An expert in the tenders field, Ronit discussed whether and how to conduct negotiations during tender procedures, the best way to anchor such negotiations in tender documents, and more.

Categories: Tenders and Projects

Barnea: Hosting Conference on Tenders in Collaboration with ACC Israel

We hosted a conference on tenders at our office together with the ACC Israel. Ronit Niederman, a partner in the Tenders and Projects Department, discussed tender negotiation strategies. Gal Rozent, head of the Competition and Antitrust Department, spoke about the role of competition in tenders. Among the guest speakers at the conference was Joy Sturm, a partner from international firm Hogan Lovells, who participated in a panel with Shai Avnieli. They discussed how to submit tenders in the US. Another keynote speaker was Gal Somech, legal advisor to the Haifa Port, who addressed the port’s privatization process.

Categories: Antitrust and Competition | Infrastructure | Tenders and Projects | Transport

Tel Aviv Stock Exchange Publishes ESG Questionnaire

The publication of the questionnaire aligns with global trends and reflects the importance of this subject for investors. According to the TASE press release, only 70 companies currently publish full ESG reports.

Greenhouse Gas Emissions: Scope 1, Scope 2 and Scope 3

The monitoring of greenhouse gas emissions is not only important for protecting environmental quality, but it also offers commercial benefits, such as monitoring energy and supply chain expenses and participating in carbon emissions trading markets. 

The Israeli Arrangements Law of 2023-2024: Significant Harm to Environmental Quality

Notwithstanding growing awareness and the measures being taken to reduce greenhouse gas emissions (as part of Israel’s commitment under the Paris Agreement), the emerging Arrangements Law could cause a regression in environmental legislation and hinder efforts to protect Israel’s population from environmental hazards.

Doing Business In Israel: Regulation of Carbon Pricing

Reducing greenhouse gas emissions to decelerate climate change processes is an important goal of many countries. The two main mechanisms that countries use to reduce GHG emissions are carbon taxation and carbon emissions trading.

Representation in Class Action for Polluting Ashalim River

Following pollution to the Ashalim River and its surrounding areas in 2017, three plaintiffs filed a class action against Rotem Amfert, a subsidiary of ICL Group, for NIS 400 million. The plaintiffs demanded compensation for the ecological damage caused to the area.

 

Categories: Class Actions | Environmental Law

All Government Ministries Must Submit Climate Action Plans by the End of 2023

This week, the Israeli government approved the joint proposal submitted by the Prime Minister and the Minister of Environmental Protection to obligate all government ministries to formulate climate action plans. The proposal was approved ahead of the upcoming United Nations Climate Change Conference, which will be held in Sharm El Sheikh, Egypt.

Responding to ITA Solution for TAMA 38 Tax Benefits

The Israel Tax Authority announced a temporary solution for the problem of tax benefits in TAMA 38 projects. Our firm commented on the proposed solution.

Categories: Real Estate

Barnea Representing Shefayim Water Park in Class Action Lawsuit

 Advs. Eran Winner and Amichay Tessler represented Shefayim Water Park in reaching a settlement agreement in the class action filed against it over alleged violations of Israel’s Prevention of Smoking in Public Places and Exposure to Smoking Law.

 

Categories: Class Actions | Litigation

Israel's New Urban Renewal Plan – When and What?

Last week, the Knesset approved Interior Minister Ayelet Shaked's new urban renewal plan in second and third readings.
The new plan will replace Tama 38, the national outline plan for strengthening existing structures against earthquakes.
What are the main points of the new urban renewal plan? How will it be implemented and until when can projects be promoted within the framework of Tama 38? Read Globe's new article.

Categories: Real Estate

Guide to the ESGI

Everyone agrees ESG principles are important aspects of companies’ activities, but these principles have also received considerable criticism. This criticism is not of the principles themselves, but rather is directed against companies that exploit these principles for the purposes of public relations and image-building. Such criticism also spotlights the considerable difficulties in implementing fundamental changes in business activities.

Elections 2022: The Industry Entering a Huge Crisis

The decision to hold elections in October 2022 looks likely to have a significantly negative effect on Israel’s urban renewal industry. Our firm commented to The Marker, . “If we hoped for a slowdown or a halt to rising real estate prices, it’s not going to happen. Especially in the urban renewal field, there is a real fear of massive delays.”

 

 

Categories: Real Estate

Pitch Day: IBM Alpha Zone

As part of our firm's collaboration with the IBM Alpha Zone accelerator, Advs. from our firm took part in the judging panel that examined the eleven startup companies participating in the venture. They also talked to the entrepreneurs about technological ideas, business plans, and innovation.

Categories: High Tech | Start Ups

Hagit Ben Moshe Speaks at Water Economy and Renewable Energy Conference

Adv. Hagit Ben Moshe, a partner and the head of our firm's cooperative societies practice, was a featured speaker at the annual Water Economy and Renewable Energies Conference. Hagit discussed the challenges of contracting between rural settlements and entrepreneurs in renewable energy projects.

Categories: Kibbutz Sector

Manpower Challenges and Existing Tech Solutions

Many organizations are facing manpower issues related to recruiting and retaining employees. This has led to a sharp rise in HR tech. Globes interviewed experts from the technology field, among them Adv. Daniel Lorber, a partner at our firm. Daniel noted there are a variety of solutions for existing challenges: artificial intelligence platforms that detect bias and discrimination against candidates or that know how to read employee work patterns, augmented reality technologies that allow candidates to “see inside” an organization before deciding to join, and tools that can warn a company about employee burnout or an employee’s intention to leave the company.

Categories: High Tech | Start Ups

Foreign Funds from Additional Stock Exchanges May Dual List on the TASE

Until now, only foreign funds from a limited number of foreign exchanges have been able to register for trading in Israel. A Ministry of Finance amendment to the relevant regulations seeks to change this.

The Tesla Might Be Electric, but Is It Eco-Friendly?

Elon Musk declared he would build a Tesla manufacturing factory in Germany in as early as 2019. The factory only obtained a license to operate now. The German regulator, environmental protection organizations, and Russian President Vladimir Putin all played a part.

Illegal Spilling of Sewage Water into Sea Leads to Significant Fine

A boutique hotel in Jaffa was convicted of spilling sewage into the sea without a permit. The court fined the company and two of its employees.

Crowdfunding for Startups

In 2020, these offering coordinators raised a total of ILS 60 million, in more than 35 campaigns by various private companies. Compared to 2019, when about ILS 45 million was raised through offering coordinators, this is an increase of about 33%. There is an expectation the data for 2021 will show a further increase.

jumpTAU Accelerator and Barnea Embark on New Cycle

A new cycle of the jumpTAU accelerator program, from Tel Aviv University, has begun. The accelerator supports multicultural ventures, in an effort to promote cooperation between Arab and Jewish entrepreneurs.

 

Our firm advises the accelerator as part of a broad collaboration with Tel Aviv University. In a meeting held today, four of our attorneys lectured to the entrepreneurs on a number of relevant topics.

 

Daniel Lorber lectured on founders’ agreements, Itay Gura lectured on startup financing, Anat Even-Chen lectured on website regulations and privacy policies, and Ido Freund lectured on intellectual property.

Categories: Start Ups

Israeli Ministry of Environmental Protection: ILS 3 Million Sanction on Shufersal

The Israeli Ministry of Environmental Protection announced this week its imposition of a pecuniary sanction totaling about ILS 3 million on the leading supermarket chain Shufersal for violations of the Clean Air Law. (In particular, the company violated provisions mandating the reduction and prevention of air pollution from its vehicles).

Indictments Filed in Israel over Officers’ Responsibility for Ecological Disaster

About seven years ago, one of the worst ecological disasters in Israel’s history occurred. During work to divert an oil pipeline, one of the old pipelines belonging to the government company Eilat Ashkelon Pipeline Co. Ltd. (EAPC) ruptured near the Evrona Nature Reserve. As a result, about five million liters of crude oil poured from the pipeline into the nature reserve located in the Arava Valley.

Interview on Workers' Rights in SPAC Issuances

Gett announced last week a USD 1.1 billion merger with an SPAC. This prompted unrest among former Gett employees who feared a dilution of their shares. We were interviewed by TheMarker about workers' rights during issuances and SPAC processes.

Categories: Capital Markets | Corporate | Investments

Much More than 66% – Must-Know Changes in the Urban Renewal Field

After years of expectations, the government has approved the legislative amendments needed to promote “Urban Renewal” projects in Israel. While everyone is talking about the amendment lowering the threshold of consent for apartment owners to 66%, a lot more has also changed. All of the amendments, both major and minor, are important.

Representation in Defamation Lawsuit against Channel 13 and Guy Lerer

We are representing the singer Eyal Golan in a NIS 1 million defamation lawsuit against Channel 13 and journalist Guy Lerer, the host of TV program Hazinor, following an investigative article that dealt with the marketing of agricultural land by a company owned by Golan. Adv. Dror Arad-Ayalon and Adv. Shir Rozenzweig are providing representation in the matter. They argued in the statement of claim that Golan's company is not connected to the allegations presented in the article and that Golan and his company are not involved in the marketing process whatsoever.

Categories: Litigation

Easing of Conditions for Amutot and PBCs to Engage with Israeli State Institutions

Up until today, pursuant to an Israeli government resolution dating back to 2001, NPOs (such as Amutot and public-benefit companies) that did not possess a certificate of proper management could not engage with government entities.

A certificate of proper management is a certificate issued to Amutot and PBCs by the Registrar of Amutot and Endowments after receiving an organization’s annual report (in conformity with the statutory requirements and the registrar’s instructions). It is valid for one year (or for two years, for Amutot and PBCs that fulfill particular criteria).

2021 Snapshot: The Impact of Covid-19 on the Israeli Economy

The advent of COVID-19 has brought a challenge to the stability of the economy of every country in the world.  Fortunately, and unlike the situation in many countries, Israel’s economy grew by 15.4% on an annualized basis in the second quarter of 2021, and by 5.3% in entire first half of the year.  The second quarter, of course, brought the bulk of the growth, exceeding that of Belgium, Canada, and the US among others.

Double the Trouble: What Happens When a Class Action Lawsuit tries to "Piggyback" off Another?

Many class action proceedings end in settlement. The settlement agreement is designed, inter alia, to facilitate an efficient and fair resolution to the proceeding, in a manner that also provides certainty to the parties. Essentially, it "takes on the risk" for all parties involved—the class action plaintiffs and their legal representation, the class, and the defendants. Settlement certification by the court constitutes res judicata, and ensures the preclusion of repeated claims regarding the subject of the settlement.

 

Everything You Need to Know about Israel’s Green Pass for Employees

Updated regulations for the implementation of the Green Pass in Israeli workplaces will come into effect on October 5, 2021. Following are some of the main guidelines of the regulations.

ESG: The New Must-Have in the Due Diligence Process

An assessment of environmental, social, and governance (ESG) factors has become an integral part of the due diligence review of companies. Such assessment may provide a potential acquirer with a detailed analysis of a company’s ability to operate successfully in a corporate world with growing environmental awareness. This is especially important for companies looking at merger and acquisition targets and seeking new investments. It is also important for any company for its future planning.

District Court Ruling: Azrieli Foundation Exempt from Paying Taxes on Dividends

An Israeli district court rejected the Israel Tax Authority’s attempt to force the Azrieli Foundation to pay taxes in the amount of tens of millions of shekels for dividends it received and continues to receive due to its holding in Azrieli Group's shares. The court accepted the tax appeal, which was filed by Barnea Jaffa Lande, and ruled that the Azrieli Foundation,  a non-profit organization that works for the public good in Israel, is not the controlling owner of Azrieli Group and is therefore entitled to a tax exemption. The court ruled, among other things, that the ITA’s position could have a chilling effect in relation to business entities’ support of philanthropic associations. Our firm's  Zohar Lande, Eyal Nachshon, Harel Perlmutter, Nir Ziman, and Omer Keydar represented the Azrieli Foundation throughout the proceedings, which lasted about five years.

Categories: Litigation | NPO | Tax

Israeli High Court Ruling: Knesset Finance Committee Limited in Authority to Approve Tax Benefits for NPOs

The Israeli High Court of Justice ruled recently that section 46 of the Income Tax Ordinance does not authorize the Knesset Finance Committee to exercise broad discretion in recognizing NPOs and in fact the Committee’s approval is limited solely to that related to its supervisory role.

Adv. Dror Arad-Ayalon Joins Firm as Special of Counsel

Adv. Dror Arad-Ayalon has joined our firm as a special advisor in the fields of white collar, ethics, and defamation. Dror has earned a reputation for his extensive experience in representing defendants in criminal cases that have received widespread media coverage.

Categories: Compliance

Warning, Border Ahead? Expanding Israeli Courts’ Jurisdiction over Foreign Defendants

In early June 2021, the Tel Aviv-Yafo District Court handed down an important precedential ruling. The ruling expands the identity of an authorized agent, i.e., the entity to whom a statement of claim may be served and that thus subjects a foreign defendant to the jurisdiction of the Israeli court.

Options to Buy Shares in a Company – Important Things to Know

Offering options to buy a company’s shares has become a legitimate benefit even for companies not in the high-tech field.

As an expert in the field, firm partner Daniel Lorber was interviewed by Globes on what it means to receive options in a company.

Categories: Corporate | High Tech | Start Ups

Climate Law Memorandum: Goals and Means for Handling the Climate Crisis

The Ministry of Environmental Protection recently published the Memorandum for the Climate Law 2021. The memorandum’s main purpose is to create an organizational framework for Israel's handling of the global climate crisis. It follows the developing trend among countries worldwide that have enacted similar climate legislation. According to the memorandum, handling the crisis shall occur on two primary levels. The first is prevention and minimization of greenhouse gas emissions in order for Israel to meet its international obligations under the Paris Agreement. The second is advancing national preparedness for the impacts and harms of the climate crisis.

Everything You Need to Know When Registering a Patent

Building an initiative? Does it include intellectual property you want to protect? We were interviewed by Globes, explaining to entrepreneurs every step they must take on the path to registering a patent.

Categories: Intellectual Property

Overcoming Opposition to Construction Plans

The publication of large-scale construction plans often provokes fierce opposition from residents in the area. Yedioth Ahronoth published in its weekend edition a comprehensive article on the subject featuring an expert from our firm. What do you need to know about submitting a plan and how to do so?

Categories: Real Estate

Five Things You Didn’t Know about Impact Investing

In the last decade, impact investments have become an international trend to address global challenges in the areas of environment, welfare, health, employment, and education. In light of the development of the impact investments’ field, we recommend familiarizing yourself with several terms that may help when examining investments in general and impact investments in particular. 

Retail and Tech in a Post-COVID World

2020 marked a monumental shift in consumer behavior, with the retail industry particularly affected by the global spread of COVID-19. Between nationwide quarantines and the looming threat of disease, retailers had to adapt quickly to survive the forced seclusion and distancing. While some have been building their e-commerce brands and marketplaces for years, others were less prepared and were left to either sink or swim.

Proper Articles of Association – Now More Than Ever

The coronavirus crisis, which hit both the Israeli market and markets globally, has been unsettling. It undermined existing collaborations and encouraged the creation of new ones. It weakened the inertia that drove many businesses and employees, and forced numerous entities to reinvent themselves, to initiate and to dare.

Employers: Everything You Need to Know about Vaccinations

This past year has been nothing short of a rollercoaster ride for employers in Israel, in terms of both their business activities and their role as employers. Now, when we can perhaps see a glimmer of light at the end of the tunnel in the form of Israel’s vaccination campaign, quite a few questions arise.

Temporary Procedure for Insolvency Procedures in Israel in Light of COVID-19

The coronavirus pandemic has wreaked extensive economic havoc on the activities of many businesses and households in Israel. According to data from the Commissioner of Insolvency Proceedings, 2020 brought a rise of about 41% in the number of applications to commence insolvency proceedings compared to 2019.

Economic Court Restores Certainty to Profit Test for Dividend Distributions

The Tel Aviv District Court (Economic Department) has restored certainty to directors in relation to the profit test for dividend distributions. The court ruled that the profit test is a retroactive technical test, unless the directors are aware of a major event that could materially change the company’s accounting position.

Israel Competition Authority Increases Enforcement against Exclusivity Arrangements

On December 30, 2020, the Israel Competition Authority (ICA) notified SOS, a company in the field of fueling services, it was imposing a financial sanction of NIS 6.3 million on the company. In addition, it imposed a financial sanction of NIS 350,000 on an executive officer in the company. Following a complaint an SOS competitor filed with the ICA, the ICA concluded SOS had entered into exclusivity agreements with its clients. The company also implemented a policy whereby it would not provide fueling services to a client if the client simultaneously engaged with a competing fuel service provider.

Relief from Insurance Requirements for Portfolio Managers and Investment Advisors

The Israel Securities Authority (ISA) has announced that, temporarily, it will not initiate or recommend taking enforcement measures against corporations licensed in portfolio management, investment advising, and investment marketing that have not fulfilled professional liability insurance requirements.

Regulation of Broker-Dealer Activity

While the activity of most financial intermediaries in Israel is regulated and supervised, broker-dealers have so far operated in an unsupervised manner and without dedicated regulation. In light of this, the Israel Securities Authority has published a legislative memorandum aimed at regulating the field of broker-dealers in Israel.

New Investment Products: Hedged Mutual Funds and Hedged Mutual Funds of Funds

With the goal of expanding the public's investment options, the Israel Securities Authority published a first draft of a document for public comments on the core characteristics of two new financial products: alternative mutual funds of the hedge fund type and hedged mutual funds of funds.

Crowdfunding Platforms – New Regulation in Europe

The European Parliament recently adopted a new regulation on crowdfunding platform activity. This regulation will apply across the board to all European Union countries. According to the new regulation's provisions, it is possible to raise up to only EUR 5 million on a crowdfunding platform. Additionally, the regulation stipulates rules to protect people investing through a crowdfunding platform, reporting duties for the entities raising funds, and more.

COVID-19, From Crisis to Opportunity

Crises test our resilience. They prevent us from deceiving ourselves about things that are unpleasant to face. Therefore, the COVID-19 crisis is a real opportunity to upgrade an organization’s compliance mechanisms and the status of its compliance officer. This includes not only improving compliance capabilities, but also integrating and deepening connections to the organization’s management.

COVID-19 Does Not Justify a Breach of or Deviation from a Contract When Its Arrival in Israel Was Foreseeable

An Israeli court recently rendered an interesting ruling on the impact of COVID-19. The case in question involved the lease agreement for the operation of a hotel. The lease agreement, executed in February 2020, provided payment of rental fees for the month of March, but payment for the months of April and May had not yet been arranged.  

An Urban Renewal Project Agreement Is Not Transferrable

In urban renewal projects, residents or owner’s rights holders select the company with whom they are willing to embark upon this long journey, based on relationship of trust and competence. The trust required leads both parties to execute a binding agreement. Understandably, residents expect the company which whom they have contracted with to remain unchanged and not for those rights not to be transferred to other parties.

Employers Are Now Required to Publish Wage Gaps between Women and Men

According to a new amendment to the Male and Female Workers (Equal Pay) Law, employers must publish a yearly report outlining wage gaps between female and male employees. The amendment provides that certain employers must draft an internal yearly report detailing the average salary of their employees and the average wage gaps between men and women within each group of employees in the workplace.

Not All Sexual Comments or Advances from a Supervisor Constitute Sexual Harassment

An important ruling regarding workplace authority figures and the prevention of sexual harassment in the workplace has established that one cannot automatically assume sexual comments or advances by an employee with managerial authority constitute sexual harassment. In this ruling, it appears, the National Labor Court has tempered to some extent widespread notions about sexual harassment by an authority figure.

New Ruling Expected to Reduce Managers' Responsibility Following a Company's Collapse

In an important ruling recently handed down, the Tel Aviv District Court rejected a NIS 120 million lawsuit filed by Habas Group against the company's managers. Judge Kabub's ruling constitutes an initial interpretation of a new section of the the Insolvency and Rehabilitation Law, which deals with the degree of responsibility that can be attributed to managers when the company they run becomes insolvent.

Categories: Insolvency and Debt Arrangements

A Startup Guide to the American Market

Daniel Lorber was invited to speak at a new Tech7 and Nisha Global meetup for those looking for their next market overseas. Daniel discussed the differences in US and Israeli business cultures.

Supreme Court Reduces Protection for New Apartment Buyers

A new Supreme Court ruling determines that a warning note may not be used as collateral for buyers of apartments in a TAMA 38 project in Ramat Gan in which the developer went bankrupt. In light of the ruling, Elder Adato, the head of our Real Estate Department, was interviewed by Calcalist. He commented: "In dozens of TAMA 38 projects all over the country, the only collateral home buyers received until now was a warning note. These warning notes were primarily intended to ensure the money of home buyers. It is important to note that this ruling applies only to a specific event, in which the contractor collapsed and the warning notes constituted an 'onerous asset' for the completion of the project. "

Categories: Real Estate | Urban Renewal

Barnea Representing Original Shareholders the Topaz Family in Sale of Holdings in Keystone Group

About a year and a half after the investment fund Accelmed, which is managed by Uri Geiger, announced the merger of the company it controls, American Keystone Group, with the Israeli Paltop company, controlled by Shmuel Topaz, it is now acquiring the entire holdings in Paltop for NIS 100 million. This ends the conflict between the investor groups of Paltop and Accelmed. Advs. Daniel Lorber, Netta Bromberg, and Harel Perlmutter  represented the Topaz family and the Paltop investors.

 

Categories: Corporate

Service Users Must Now Hold Hearing Procedures for Service Providers’ Employees

The National Labor Court recently handed down an important ruling that concerns many employers in the market engaged with service provider companies. The National Labor Court ruled that although there were no employee-employer relations between the employee and its employer in this matter, the service user still had to take part in the employee’s termination and hearing process, in addition to the obligation of the direct employer to hold the hearing.

Roundtable Article of Urban Renewal Experts

In the weekend edition of Yedioth Ahronoth, urban renewal experts gathered to discuss burning questions in the field. Representatives from our firm commented on what alternative housing is and when a tenant is entitled to it

Categories: Real Estate

Fintech Companies: New Program to Facilitate Regulatory Reliefs

Although Israel is a world leader in the fintech field, companies operating in this area face many regulatory challenges. A newly published legal memorandum aims to enable the creation of a “sandbox”, with inspiration from various programs already implemented in Japan, Australia, and Singapore. The goal is to establish a unique experimental environment, a “regulatory sandbox,” where regulatory relief is granted to companies who choose to participate in the program.

Banks Required to Share Information about Clients with Other Financial Bodies

As part of a broad change led by the Ministry of Finance to increase competition in the banking and financial services market, a memorandum for the Provision of Financial Information Services Law was recently published for public comments.

New Capital Raising Channels to Be Made Available on the Tel Aviv Stock Exchange

The Israel Securities Authority has approved expanding the trading activity conducted on the trading platform for institutional investors of the Tel Aviv Stock Exchange (referred to as TACT), so that additional types of securities may be issued and traded on it.

Israel Takes US Approach in Enabling Affordable Fast Track to Register Provisional Patents

A new, welcome initiative by the Israel Patent Office intends to allow entrepreneurs, through a preliminary and fast-tracked process, to submit an application for the provisional registration of a patent. This is a significant step, which could revolutionize entrepreneurial innovation in Israel and make it easier on many Israelis who wish to protect future patents. In the course of the fast-track process, the application is not considered for a year, and applicants are able to set an early submission date for the patent's registration.

How to Arrange the Inheritances of Agricultural Farms

If you are the owner of agricultural land, you may find yourself wondering about the future of the family farm after your passing. You should know this is subject to laws, agreements, protocols, and regulations unique to the agricultural sector in general and to land in particular.

Legal Options for Israeli Companies Operating in the U.S.

How Israeli companies operating in the U.S. can use COVID-19 as a force majeure and the restructuring of debt in chapter 11 bankruptcy ?

ISA Publishes Temporary Order on Clarification of Clients’ Needs

In response to the Corona pandemic, the ISA published on March 30, 2020, a temporary order for license holders in connection with the clarification of clients' needs. 

Israel: Updates for Portfolio Managers and Investment Advisors and Marketers in Light of the Coronavirus Crisis

In light of the coronavirus pandemic, the Israel Securities Authority (ISA) recently released a number of updates and reliefs on the obligations that apply to portfolio managers and investment advisors and marketers.

The Corona Effect: Q&A on Real Estate

 As experts in the real estate field, our firm was interviewed about Globes about the use of the force majeure clause in real estate contracts We noted, "The law does not have a uniform definition of what a force majeure event is and interpretation is made in accordance with previous rulings.”

Categories: Real Estate

Israel: Engaging Employees on Overtime at an Unusual Scope

On March 18, 2020, the Israeli Ministry of Labor, Social Affairs and Social Services published new regulations permitting employers to engage overtime workers at a larger scope, significantly in excess of what has been permissible to date.

Podcast on Rights of Employees in Home Quarantine or on Unpaid Leave

A podcast featuring Adv. Lee Alter discusses the rights of employees in home quarantine or on unpaid leave due to the coronavirus pandemic

Categories: Employment

Does a Delay in the Delivery of an Apartment Due to the Coronavirus Constitute Grounds for Untimely Delivery without Compensation?

What happens if a contractor’s workers do not come to work due to the spread of the coronavirus, and therefore cause delays in the delivery ? Will the buyer be entitled to compensation or will the delay be justifiable?

Israel’s Privacy Protections and Data Security Recommendations for Telecommuting due to Coronavirus Spread

The Israeli National Cyber Security Authority published recommendations for business and organizations related to privacy protections and data security for telecommuting due to coronavirus spread.

Hedged Mutual Funds

As part of the ISA's move to make investing in hedge funds more accessible to the public and to develop mechanisms for their oversight, it published a document for public comment that details the core characteristics of two new financial products - an alternative mutual fund of the hedge fund type and hedged mutual fund of funds.

Chambers TMT Guide 2020: Law in Practice

As experts in the TMT field, our firm was asked to contribute the Israeli law and practice overview for the Chambers Israel TMT guide. In their overview, Micky Barnea, Daniel Lorber, and Anat Even-Chen discuss legal considerations for big data, machine learning, and artificial intelligence. They also address key data protection principles, the challenges with IT service agreements, privacy matters, and more. As a whole, the TMT guide offers insights for each jurisdiction.

 

Categories: Blockchain | Cyber | High Tech | Privacy Law | Regulation

Daniel Lorber Lectures at Israeli Go Global Forum's Meetup

Adv. Daniel Lorber participated today at the Israeli Go Global Forum meetup. Daniel presented to participants the issues that arise when deciding whether to recruit a local manager versus relocating an Israeli manager abroad.

Categories: Start Ups

The Battle over Pinui-Binui: Ministry of Justice Wants You to Receive More for Each Apartment

Our firm was interviewed by Globes on the Urban Renewal Authority's latest initiative to limit the addition of space in the apartments of pinui-binui projects to 12 sq. m. We explained that this reduction represents another decrease in entrepreneurs' profit, thus jeopardizing the promotion of projects in this field.

Categories: Real Estate | Urban Renewal

Israel Securities Authority Moving to Reduce Insurance Costs for License Holders

In an attempt to reduce insurance costs for License Holders, the Israel Securities Authority (ISA) has recently implemented several changes.

Investment Management 2.0 – Internet Platform for Investment Management

New Israeli regulations allow for customized portfolio management services through on-line platforms.

How Israel Became a Leader in the FoodTech Industry?

In Israel, over 200 startups and companies are at the forefront of innovation in the FoodTech field. Watch the video to learn more about the leading trends in the FoodTech sector .

David Appel's Lawsuit against Michael Cherney and Zeev Rom Dismissed

The Tel Aviv District Court dismissed a NIS 239 million claim filed by David Appel against Michael Cherney and our client Zeev Rom on statute-of-limitation grounds and fined him attorneys' fees. Zeev Rom was represented by Advs. Zohar Lande and Moran Bickel from our Litigation Department.

 

Categories: Litigation

IPO – What’s Important to Know

A private company considering an IPO should know it is a complex and long process, and one that may pose many challenges. Therefore, before deciding to undertake an initial public offering, a deep examination of the process is recommended.

Representing Sartorius in the acquisition of a majority stake in Biological Industries.

Our firm represented Sartorius, a leading multinational corporation in the field of life science, research and development  and biopharmaceutical industry, in a transaction to acquire a majority stake in the Israeli cell culture developer Biological Industries. Sartorius acquired the majority of Biological Industries shares by way of secondary purchase of shares from the Development Company of Kibbutz Beit Haemek and private equity fund Fortissimo Capital, in consideration for USD 50 million. In addition, as part of the transaction, Sartorius and the Development Company of Kibbutz Beit Haemek signed an option to purchase/sell additional holdings in the future.

Categories: Corporate | High Tech | Investments

Modifications to an Apartment at the Purchaser's Request Do Not Constitute Just Cause for Late Delivery of Possession

A recent judgment by the Hadera Magistrate's Court holds that modifications to an apartment made at a purchaser's request do not constitute just cause for late delivery and that the purchaser must be compensated for any delay.

Urban Renewal Authority Halts Projects Due to Improper Obtaining of Signatures

Our firm was interviewed by Globes on the Urban Renewal Authority's latest initiative to limit the addition of space in the apartments of pinui-binui projects to 12 sq. m. We explained that this reduction represents another decrease in entrepreneurs' profit, thus jeopardizing the promotion of projects in this field.

Categories: Real Estate | Urban Renewal

Google Permits Sports Betting Advertisements

Earlier this year, Google updated its Google Ads policy on gambling and games and announced that, as part of a limited beta launch, state-licensed gambling advertisers would be permitted to promote sports betting content within the US states New Jersey, Nevada, and West Virginia.

Event: Urban Renewal

Our office hosted today an event on urban renewal. The event dealt with the 2019 review of the field and projections for 2020. We also hosted the chairman of the Urban Renewal Authority and held an expert panel.

Categories: Real Estate | Urban Renewal

Elder Adato Moderates Mayoral Panel at the Israel Builders Association Conference

Elder Adato, the head of our Real Estate Department, moderated today the mayoral panel at the Israel Builders Association Conference. Participating in the panel were the mayor of Eilat, the mayor of Yehud-Monosson, the co-CEO of Shalom Et Nathan, and the chairman of the Israel Builders Association.

Categories: Real Estate | Urban Renewal

Israel State Attorney’s Policy on Indicting and Sanctioning Corporations

In October 2019, the Israel State Attorney published a new guideline on its office’s policy when considering the prosecution of a corporation, as well as on how it should determine its position on the manner of punishing corporations.

Assuring Apartment Purchasers' Money

Israeli's Ministry of Construction and Housing recently imposed a NIS 6.5 million financial sanction on the developer of a TAMA 38 project in Kiryat Bialik. The developer was fined after failing to produce a guarantee to purchasers of apartments in the project for funds they had paid toward the unit price, as required by the Assurance of Investments Law.

Lawsuit against Liquidating Company of Bank of North America

Our firm is representing private clients in a lawsuit against the liquidating company of the Bank of North America (disbanded in 1985), as well as against the administrator general and official receiver. The lawsuit concerns trust funds deposited in the bank by the deceased father of the family. The clients are represented by Advs. Zohar Lande and Shachar Rothschild of our Litigation Department.

Categories: Litigation | Private Clients

Representing German Fund Mercura in Investment in Israeli Startup 3DSignals

Our firm represented the German fund Mercura in its investment in 3DSignals. This Israeli startup enables the monitoring of production floor performance. The investment follows the company's rapid growth in the German market.

Categories: High Tech | Investments | Start Ups

Ministry of Justice and Israel Securities Authority Wish to Adjust the Israeli Corporate Regime to Companies without a Controlling Shareholder

The Israel Securities Authority (ISA) and the Ministry of Justice published a call to the public to adjust the corporate regime, as part of addressing problems that may arise as a result of the transition of public companies to a decentralized ownership structure.

Israel Securities Authority Working to Launch Securitization Market in Israel

The Israel Securities Authority (ISA) recently published an advisory document for public comment ahead of the publication of a legal memorandum for the regulation of the securitization field in Israel.

An Additional Barrier in Performing TAMA 38 Projects

In a precedential ruling, the Tel Aviv District Appeals Committee affirmed the Regional Planning and Construction Committee’s decision that in cases in which a new zoning plan provides more rights than those set in the TAMA 38 provisions, the consent of all residents is required.

Maurice Haliwa Increases Claim against Jacky Ben-Zaken and Avraam Nanikashvili

Our firm continues to represent Maurice Haliwa, a shareholder in Manor A.D. Construction Investments Ltd., in a lawsuit against Jacky Ben-Zaken and Avraam Nanikashvili. Haliwa recently increased the amount of the original lawsuit from NIS 18 million to NIS 100 million. Advs. Zohar Lande and Yatir Madar represent the client.

Categories: Commercial Litigation | Litigation

Barnea Represented ISS Global in the Disposition of Its Holdings in Israel

Our firm represented the Danish catering and cleaning services company ISS Global in the disposition of all its holdings in Israel. ISS was advised by Advs. Simon Jaffa, Yuval Lazi, Danny Boguslavsky, and Chen Nadir.

Categories: Corporate | Investments

Barnea Representing Eva Fashion in Dispute with Ilan Bioculture

Our firm is representing Eva Fashion in a dispute with Ilan Bioculture, a cannabis plants company that is seeking to cancel an investment agreement signed with Eva Fashion. 

Categories: Commercial Litigation | Litigation

Interview about Purchasing Groups

Our firm was interviewed by TheMarker following publication that a group of apartment purchasers in the exclusive Blue project submitted a claim against Canada Israel. We explained more about purchasing groups and noted that "those who join purchasing groups become entrepreneurs together with the other group members and, as a result, are dependent on the management of the group. The group members have no final price for the apartment, there is no final date for occupancy, and there are no guarantees for the money that they pay. It is important to remember that despite the possibility of large savings in the value of the future apartment, which sometimes reaches 20%, there are many projects managed incorrectly and that sometimes even cost the group more money than they would pay if they were buying an apartment directly from a contractor."

Categories: Real Estate | Real Estate Transactions

Barnea Representing Neng Yang in Acquisition of ADT

Our firm is representing the Chinese investment fund Neng Yang in its acquisition of Advanced Dicing Technologies Ltd. (ADT). ADT is an Israel-based electronics dicing equipment company. The acquisition amount is USD 35 million.

Categories: Corporate | High Tech | Investments

Israel Securities Authority Demands Being Granted Authority to Supervise Underwriters and Distributors

The Israel Securities Authority (ISA) recently published a proposal for amending the Securities Law as to the supervision of underwriters and distributors.

Barnea Represented Bridgepoint in the Acquisition of Qualitest

Our firm represented the private equity group Bridgepoint in the acquisition of control in the Israeli software testing company Qualitest from Marlin Equity Partners for approx. USD 420 million.

Categories: High Tech | Investments | Tax

A Win for Zeev Rom: Gad Zeevi to Pay Another USD 1.5 Million in Brokerage Fees

Following a Supreme Court hearing, Gad Zeevi and Zeev Rom decided to withdraw their mutual appeals and to keep the District Court ruling ordering Zeevi to pay Rom USD 1.5 million in connection with the financing transaction for the purchase of Bezeq shares in 2000. Rom was represented by Advs. Zohar Lande and Moran Bickel of the firm's Litigation Department.

Categories: Commercial Litigation | Litigation

Building Removed from Pinui-Binui Plan Due to Residents' Objection

Our firm was interviewed by Globes about a pinui-binui project in Kiryat Yovel, Jerusalem, some of whose residents we were representing. Residents of the middle building objected to the plan before the Jerusalem District Planning and Building Committee, which eventually decided to exclude this particular building from the project. Our firm noted that this decision proves it is possible to make flexible plans and exclude buildings with objections while still otherwise approving pinui-binui plans.

Categories: Real Estate | Urban Renewal

The Expected End Date for TAMA 38: May 2020

The Planning Administration revealed that the deadline for the completion of the TAMA 38 plan is May 2020. As expets in the field, our firm was interviewed by TheMarker on the matter. We noted that the Planning Administration's announcement entangles an entire industry built on the basis of TAMA 38, and projects that invested hundreds of hours of work and hundreds of thousands of shekels will be left orphaned and unable to implement.

Categories: Real Estate | Urban Renewal

Ministry of Defense Seminar on P.F.I Projects

Inon Yogev, a partner in our Infrastructure and Project Finance Department, lectured today as part of a seminar on the establishment of P.F.I projects in the defense sector. In attendance were senior officials from the Ministry of Defense and the IDF.

Categories: Infrastructure | Infrastructure Project Finance

Barnea Represented Axcel in the Acquisition of Phase One

Our firm represented Axcel in the acquisition of Phase One from Silverfleet Capital. Axcel is a leading Nordic private equity firm focusing on mid-market companies. It has a broad base of both Nordic and international investors.

Categories: Corporate | Investments | Mergers and Acquisitions

First Evacuation and Reconstruction Project in Givat Olga

Our Real Estate Department is representing the entrepreneurs and some of the residents in an evacuation and reconstruction project on Hagdud Haivri St. in Givat Olga, Hadera.

Categories: Real Estate | Urban Renewal

Guidelines for Standardization of Contracts and Tenders of Infrastructure Companies in the Area of Transportation

In light of the rise of investments in transportation projects, new guidelines were issued for infrastructure companies operating on behalf of the Ministry of Transport, requesting such companies adopt binding standards on several issues regarding contracts and tenders.

Hosting a Delegation of German Medical Companies

Our firm hosted a delegation of German Companies, part of the Tech7 collaboration with SCE in the BIPA program (Bavarian Israeli Partnership Accelerator).

Categories: High Tech | Life Sciences | Start Ups

Barnea Represented VVNP in Investment Round in Aleph Farms

Our firm represented the Singapore-based venture capital fund VisVires New Protein (VVNP) in an investment round in Aleph Farms, an Israeli food-tech startup.

Categories: High Tech | Investments | Start Ups

First Time in Israel: Enhanced Scrutiny Standard Leads to Issuing of Interlocutory Injunctions

This ruling constitutes a precedent in the way the court applied the standards of judicial review and held that the business judgment rule should not be applied if business decisions are made by officers while in a state of conflict of interest.

Administrative Petition Filed Against Our Client Following Tender Win

Our firm is representing the Tel Aviv Taxi Organization in an administrative petition filed against after its win in the Tel Aviv cluster of a two-stage competitive process conducted by the Ministry of Transport. The organization is represented by Advs. Zohar Lande, Eyal Nachshon, and Adi Shoham of the Litigation Department.

Categories: Administrative Law | Infrastructure | Litigation | Transport

Representing ArcusTeam in Pre-Seed Funding Round

Our firm represented the Israeli startup ArcusTeam, which developed an automated platform to identify both known and unknown security weaknesses in IoT devices, in a pre-seed round of $1.5 million.

Among the startup's investors are TheDock Accelerator and TAU Ventures.

Companies Seeking to Provide Brokerage Services are Required to File a Permit Application by May 30, 2019

Applicants who submit a permit application on or before May 30, 2019, may continue to offer brokerage under the previous ISA regime until receiving a decision on their application.

Barnea Representing Knight Therapeutics in Minority Discrimination Lawsuit in Israel

Our firm is representing Knight Therapeutics, a Canadian public company that holds 28% of Israeli pharmaceutical company Medison's shares, in a lawsuit alleging the deprivation of its rights as a minority shareholder in Medison. The company is represented by Advs. Zohar Lande, Eyal Nachshon, and Omer Keydar of our Litigation Department.

Scope of Land Supervisor's Powers

A judgment by the Supreme Court recently established the scope of instructions the Land Supervisor is authorized to issue in regard to the common property of a condominium defined as a "complex building."

Barnea Represented Danel Ltd. in the Acquisition of Levinger Group

Our firm represented Danel Ltd. in a deal to acquire 51% of Levinger Group. This marks a strategic move by Danel to expand into the private health field.

Categories: Corporate | Investments | Mergers and Acquisitions

Barnea Represented Exclusive Networks in Securewave Acquisition

Our firm represented Exclusive Networks in its acquisition of 70% of the shares of Israeli company Securewave Ltd, one of Israel’s leading independent cybersecurity VADs.

Tips before Signing a Lease Agreement for an Apartment

Since an apartment lease can contain several pitfalls, here are some important issues you should check in order to ensure you begin your lease on the right foot.

Protection of Intellectual Property

Many startups fail to adequately safeguard their most important asset – their intellectual property. Click to read some fundamental steps that tech companies can take in order to protect their products and inventions.

Barnea Represented Eldav Investments in Dispute with Fellow i-Jump Shareholders

Our firm represented Eldav Investments, a shareholder in i-Jump, in a dispute with the network's other shareholders.

Continued Representation of Eyal Shamir in Claim for Brokerage Fees

Advs. Zohar Lande, Eyal Nachshon, and Omer Keydar of the firm's Litigation Department continue to represent the businessman Eyal Shamir in a lawsuit against British Israel. Shamir claims he was not paid a brokerage fee for the merger between British Israel and Melisron.

Event Invite: The Legal Advisor's Role When Dealing with a Company in Crisis

Together with the Association of Corporate Counsels, we are holding on February 6th a seminar on the legal advisor's role when a company is in crisis. The seminar will feature a simulation of a multi-crisis event, with participants focusing on managing the crisis opposite regulators, media, business partners, and employees.

Doing Business in Israel – Practical Law

Barnea's Q&A guide to doing business in Israel was published on the Practical Law website. The guide provides an overview of recent key developments that have affected doing business in Israel, including the legal system, foreign investment, regulation, employment, taxation, and IP.

Hosting Participants of the EdStart Program

We hosted today participants of AWS EdStart, an educational technology (EdTech) startup accelerator. A number of partners from our firm spoke at the seminar: Itay Gura lectured on founders' agreements, Daniel Lorber on intellectual property, and Harel Perlmutter on the tax issues of startups.

Year in Review – Capital Markets

Israeli Securities Authority Classifies Cryptographic Coins as Commodities Rather Than Securities. On March 19, 2018, the interim report of the Committee for Examination and Regulation of Cryptographic Currencies, which was established in August 2017, was submitted. The interim report examines the applicability of the Securities Law to offerings to the public in Israel based on decentralized registration.

Supreme Court Decision on Knesset Channel Chosen as Top Ruling in 2018

TheMarker named the Supreme Court's ruling on the Knesset Channel tender as one of the five most important verdicts of 2018. According to TheMarker, the ruling provides a glimpse into the Court's attitude to the media. Advs. Zohar Lande, Eyal Nachshon, Adi Shoham, and Omer Keydar of the firm's Litigation Department represented RGE Knesset Channel, which won the tender.

Categories: Administrative Law | Litigation | Telecom & Media

Year in Review – Infrastructure and Project Finance

2018 was characterized by the promotion and development of numerous infrastructure and energy projects. A government decision in September 2017 led to the formulation of a multi-year plan for the development of 147 infrastructure projects in Israel at a total cost of NIS 116 billion. One of the goals of the plan is to promote public-private partnership (PPP) projects.

Charges against Our Client in Utrade Case Dropped

Dr. Zvi Gabbay, Adv. Moran Bickel, and Adv. Sapir Malul represented Rafi Bar-Lev in a hearing before the Tel Aviv District Attorney's Office. The DA's Office was considering filing an indictment against Bar-Lev for fraudulent receipt, but instead chose to close the case against him.

Categories: Capital Markets | Litigation

Family Members Are Not Necessarily One Economic Unit for the Purposes of Betterment Tax Payments

The Appeals Committee for Planning and Building, Compensations and Betterment Tax in the District of Jerusalem held that family members who are not one economic unit are not a single family unit for the purposes of exemption from betterment tax in the expansion of an apartment of no more than 140 square meters.

INGL to Pay NIS 370 Million for the Construction of an Offshore Dry Gas Pipeline

Our firm represented INGL during the negotiation and conclusion of an MoU for the construction by Energean of an offshore dry gas pipeline from the Karish and Tanin fields to the Israeli shore. The pipeline is expected to be transferred to INGL in the beginning of 2021.

Categories: Gas | Infrastructure

High-Tech Earthquake: Tax on Exercising Options for Employees Will Increase Upon Exit or Issue

Adv. Daniel Lorber, the head of our firm's Equity Incentives practice field, was interviewed by Globes on the Israel Tax Authority's latest decision. Instead of a capital gains tax rate of 25% on options granted to employees for exercise in the event of an exit or issue, the proceeds from such exercise will now be considered labor income, and therefore the tax liability may rise to 50%.

Categories: Employee Tax Benefits | High Tech | Start Ups

Doctor, Can I Get a Prescription for Blockchain?

While still widely identified with digital currencies, blockchain technology is also beginning to revolutionize the healthcare industry. See how pharma companies and medical institutions have begun to rely on this technology to resolve problems faster and more efficiently.

Barnea Represented Azrieli Group in a Class Action Suit

Advs. Zohar Lande, Eyal Nachshon, and Omer Keydar of Barnea's Litigation Department represented Azrieli Group in a class action suit for not displaying a price per unit of measure for certain products on its e-commerce website. A settlement was reached in the suit.

Categories: Class Actions | Litigation

US Court Allows Company to Cancel a Transaction Based on “Material Adverse Effect” Clause in Agreement

The Delaware Court of Chancery issued a precedent recently, whereby an acquisition agreement may be cancelled due to the occurrence of a “Material Adverse Effect” (MAE) in the acquired entity.

2/20 Vision – Are We Over the Hedge?

The presence of over 100 domestic hedge funds showcases the recent considerable growth of the industry in Israel. Here’s why hedge funds have become so popular.

Barnea represented Senetas Corporation Ltd.

Our firm represented Senetas Corporation in a USD 8 million investment in the Israeli cyber company Votiro Cybersec Global Limited

Categories: Corporate | Cyber | High Tech | Investments | Mergers and Acquisitions

Defending against Sexual Harassment in the Workplace

Barnea and SPB hosted a seminar today on the issue of sexual harassment in the workplace. We provided an overview of the key legal aspects in Israel.

Categories: Employment

Year in Review - Technology

In March 2018 the Israel Innovation Authority launched a $264 Million National Digital Health Program, with the aim of promoting Israel as a leader in digital health, and improving the quality and quantity of digital health data to support the research and development of preventive and personalize medicine. The program includes a new National Genomic-Clinical Initiative, aimed at sequencing and analyzing the genomes of 100,000 Israeli volunteers, for the purpose of aiding drug discovery.

New Court Ruling Prohibits Short-Term Apartment Rentals

The Supervisor of Land Registration at the Ministry of Justice accepted a lawsuit filed by the housing committee of a condominium building in Tel Aviv and forbade one of the apartment owners from using his apartment for short-terms rentals (Airbnb, Booking).

Q&A on the Right of Workers to Unionize

We answer a series of questions from Mako about the right of workers to unionize in the workplace.

Categories: Employment

IBM Alpha Zone 8th Class Selection

Our firm participated in the selection process for the 8th class of the IBM Alpha Zone accelerator.

Categories: High Tech | Life Sciences | Start Ups

October 2018 News Flash – Employment Law

This news flash features information on the statutory day of rest during upcoming general elections for local authorities and regional councils in Israel and an update on the new amendment to the Prevention of Sexual Harassment Regulations.

A Building without a Building Permit Cannot Perform Urban Renewal under TAMA 38/2

The Tel Aviv District Court, presiding as an Administrative Court, rejected a petition filed against the District Appeals Committee for Planning and Construction and held that a structure that has not received a building permit cannot execute a TAMA 38 project. Per the court, the desire to reinforce buildings for risk of earthquakes is not intended to cure construction non-compliance and is not designed to "launder" buildings constructed without a permit

Barnea Takes on Representation of TI Group Automotive Systems SRO

Our firm is representing the Czech company TI Group Automotive Systems SRO in a €4.5 million lawsuit against Raval ACS Ltd. The lawsuit stems from a valve failure that resulted in the recall and repair of 250 thousand Mercedes cars.

Categories: Commercial Litigation | Litigation

Event Invite: Defending Against Sexual Harassment at the Workplace in the UK, USA and Israel

Join Barnea and Squire Patton Boggs for a free training session on the issue of defending against sexual harassment in the workplace and receive an overview of the key legal and practical issues in the UK, the US and Israel.

Categories: Employment

Hiring Employees Who Work from Home

Adv. Marie Tsion is featured in Mamon, Yedioth Ahronoth's financial supplement, on how to determine a policy for the scope of working from home.

Categories: Employment

What to Know before Signing a Contractor's Purchase Application

In most projects, the marketers/contractors/developers customarily require potential apartment buyers to sign a purchase application/proposal form. Read through these five points before signing.

Activist Shareholders – The Israeli Challenge

Barnea and ACC hosted today a seminar on shareholder activism. Micky Barnea discussed activism in Israeli companies. Also presenting were Elchanan (Nani) Maoz from Everest Fund and Steve Wolosky from Olshan Frome Wolosky LLP.

Categories: Capital Markets | Derivative Actions | Shareholder Activism

Employer Dos and Don'ts When Workers Form a Union

Our Head of Employment was interviewed by the radio station Kol Israel Reshet Bet on how an organization should conduct itself when workers want to form a union (starting at 35:30).

Categories: Employment

Barnea Represented Visual Estate in Its Recent Round of Financing

Our firm represented the Israeli startup Visual Estate in its recent round of financing by private investors. Visual Estate is an SaaS platform that allows you to turn any floor plan into a fully immersive VR experience.

Categories: High Tech | Start Ups

New Privacy Protection Laws in Brazil and India

Both Brazil and India have recently passed new privacy protection laws. These laws may also apply to Israeli companies doing business in the countries.

Bank of Israel Encourages New Digital Banks

In June 2018, the Bank of Israel published a new policy for authorizing small and digital banks. The Banking Supervisor announced that new banks can have initial regulatory capital of NIS 50 million - a substantial reduction of the levels previously required.

Event Invite: Activist Shareholders – The Israeli Challenge

Join Barnea and ACC for a seminar on shareholder activism. During the seminar we will examine activism in Israeli companies and the courtroom, while comparing the American and Israeli markets.

Categories: Capital Markets | Shareholder Activism

The New Reform in the Field of Privacy Protection and Information Security - the Day After and the Future …

Israel’s new Privacy Protection (Information Security) Regulations came into effect this past May. These regulations constitute a significant reform and turning point in the field of personal information security in Israel and in protecting the privacy of Israeli citizens.

Obligation to Disclose Post-Sale Delivery and Service Policies

Adv. Asaf Shalev was interviewed by TheMarker regarding the Consumer Protection Authority's new directive, according to which companies and business owners who operate a store or a website will be required to specify in a prominent and visible location which areas they refuse to provide their services to.  

 

Categories: Consumer Protection | Regulation

Launch of Electricity Authority Reform

At the end of last week, the Israeli Knesset approved a historic reform to the electricity sector. The selling process of the first power plant, Alon Tavor, is expected to begin within a few months.

Supreme Court Ruling: RGE Group to Operate Knesset Channel

The Supreme Court issued a ruling today rejecting the petitions of News 2 and Channel 20 against the decision to announce RGE as the winner of the Knesset channel tender. This paves the way for the operation of the Knesset channel by RGE as early as August 1, 2018. RGE was represented by Advs. Zohar Lande, Adi Shoham, Eyal Nachshon, and Omer Keydar of our firm's Litigation Department.

Categories: Commercial Litigation | Litigation

Lecture on Legal Aspects of Offshore Process for Israeli Companies

We lectured today on the legal aspects of the offshore process for Israeli companies at a meetup of the Israeli Society for Human Resource Management.

Categories: Employment

Updates on Consumer Protection Laws

Several new consumer protection updates: the obligation to disclose post-sale delivery and service policies, the expansion of provisions regarding the scheduling of providing services at consumers’ homes, and relief in the obligation to mark apparel products.

Israel Supreme Court Precedent Allows Social Network Users to Sue in Israel

Israel's Supreme Court has handed down a precedent ruling whereby a legal dispute between a social network and its Israeli users will be adjudicated in the court in Israel, notwithstanding the fact that the social network's terms of use contain a jurisdiction stipulation vesting sole jurisdiction to the court in California.

Workshop on Managing Israeli Subsidiaries of Multinational Corporations

Barnea hosted today, together with the Ministry of Economy, a workshop on the corporate and labor laws relevant to officers of Israeli subsidiaries of multinational companies.

Categories: Corporate | Employment

Consensual Relationships: What Is the Law's Take on Romantic Relationships between Managers and Employees?

Adv. Lee Alter Kizis of the Employment Department published an article on the Mako website about consensual personal relationships in the workplace.

Categories: Employment

PropTech – Transformation of the Real Estate Market

Major, long-established players in the real estate market have joined forces with young companies and entrepreneurs with the objective of resolving the many challenges inherent in the field of real estate transactions.

 

Lecture on Labor Law Issues of Hi-Tech Companies and Startups

Adv. Marie Tsion, Head of our Employment Department, lectured today, as part of a professional training course for HR professionals, on various labor law issues relating to hi-tech companies and startups.

Categories: Employment | High Tech | Start Ups

Broker Sues for NIS 50 million over British and Melisron Merger

Advs. Zohar Lande, Eyal Nachshon, and Omer Keydar from our Litigation Department are representing businessman Eyal Shamir in a lawsuit against British Israel Investments owned by Melisron Ltd. Shamir alleges he was not paid a brokerage fee for the merger between the two companies.

Categories: Litigation

Barnea Represented Investor in Israeli Cybersecurity Company Claroty

Barnea advised an investor in relation to a $60 million investment in cybersecurity company Claroty. The company specializes in cybersecurity for industrial control networks.

Categories: Cyber | High Tech | Investments | Start Ups

Israel Chapter in 2018 Anti-Money Laundering Legal Guide

Dr. Zvi Gabbay and Adv. David Gilinsky of the firm's Capital Markets Department contributed to the Israel chapter of the 2018 edition of The International Comparative Legal Guide to Anti-Money Laundering. The chapter discusses issues of enforcement and regulation to prevent money laundering in Israel.

Categories: Capital Markets | Compliance

RGE Wins Tender for Operation of Knesset Channel

The Cable and Satellite Council awarded RGE Group's proposal with the tender to operate the Knesset Channel for the next 10 years. RGE is represented by Advs. Zohar Lande, Adi Shoham, Eyal Nachshon, and Omer Keydar of our firm's Litigation Department.

Categories: Administrative Law | Litigation

How to Protect Your Trade Secrets

Barnea and Bird and Bird are hosting today a seminar on the protection of trade secrets from the Israeli and European perspectives. We will discuss the confidentiality and non-compete clauses in employment agreements.

Categories: Corporate | Employment

Landmark Israeli Court Decision Halts Deal between Two US Companies

An Israeli court has ordered to halt an investment deal in Arcturus Therapeutics, pending clarification of the lawsuit filed by Joseph Payne, the company's founder, regarding the cancellation of his dismissal as CEO. This decision was made despite the fact that the company operates in the United States with American management. Joseph Payne is represented by Advs. Micky Barnea, Zohar Lande, Omer Keydar, and Ron Shuhatovich.

Categories: Corporate | Derivative Actions | Litigation

Ethemba Capital Selling Control in Avgol to Indorama Ventures

Our firm is representing British private equity firm Ethemba Capital in its sale of control in Israeli company Avgol Nonwoven Industries Ltd. to Indorama Ventures Spain S.L., a chemical manufacturer whose shares are traded on the Thai stock exchange. The price of the sale is valued at NIS 1.7 billion.

Categories: Corporate | Mergers and Acquisitions

Check-Cap Ltd. Completes Public Offering on NASDAQ

Barnea represented the US underwriter H.C. Wainwright Co., LLC in the public offering transaction issued by Check-Cap Ltd. via a prospectus on NASDAQ. Check-Cap Ltd. raised $20.2 million in gross proceeds, including in the exercise of an overallotment option, in shares and warrants. Check-Cap Ltd., an Israeli clinical-stage medical diagnostics company, is developing C-Scan®, a capsule-based system for preparation-free colorectal cancer screening.

Categories: Capital Markets | IPOs and Public Offerings

Barnea Represented ADM Capital in Investment in Israeli Startup Rootility

Barnea represented ADM Capital, a UK-based investment fund, in an investment round in the Israeli plant-breeding startup Rootility.

Categories: Corporate | High Tech | Investments | Mergers and Acquisitions | Start Ups

Israel's Privacy Protection Regulations

Adv. Asaf Shalev was interviewed by Mamon, Yediot Ahronot's financial supplement, about the new privacy and information security regulation coming into force in Israel today. This regulation sets a new standard for the protection of personal information in databases.

Categories: Privacy Law | Regulation

IFF to Buy Israel's Frutarom

Our firm represented International Flavors & Fragrances Inc. (IFF) in its acquisition of Frutarom, the Israeli flavors and ingredients maker, for USD 7.1 billion.

Categories: Corporate | Mergers and Acquisitions

Dr. Zvi Gabbay Interviewed on ADR's petition to the District Court for Economic Affairs

Dr. Zvi Gabbay, Head of the Capital Market Department, was interviewed by TheMarker following a petition submitted by ADR through our firm to the District Court for Economic Affairs in respect of the Israel Securities Authority's decision requiring the company to publish a prospectus. ADR offers the public a unique investment channel - insurance policies of older American citizens.

Categories: Capital Markets | Compliance | Litigation

Hosting Taasiyeda Participants for Lecture on Startup Essentials

Our firm is hosting today the participants of Taasiyeda, an education program founded by the Manufacturers Association of Israel, for a seminar on founders' agreements, IP, and tax issues.

Categories: High Tech | Intellectual Property | Start Ups | Tax

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.

Barnea Represented Greenyard Fresh in Acquisition of Mor International

Our firm represented Greenyard Fresh, a global market leader of fresh, frozen, and prepared fruits and vegetables, in the acquisition of 49% of Mor International.

Categories: Corporate | Mergers and Acquisitions

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.

Barnea Represented Cellebrite in the Sale of the Mobilogy Division to a US Fund

Our firm represented Cellebrite in the sale of the Mobilogy Division to the American ESW Capital Fund. The Mobilogy division, which operates as a separate brand, offers technological solutions for operators, retailers and aftermarket  that enhance the customer experience in-store & beyond.

Categories: Corporate | High Tech | Investments | Mergers and Acquisitions

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.

Marie Tsion Offers Tips to Law Students Preparing for Internship Interviews

Adv. Marie Tsion, Head of our firm's Employment Department and the point person for interns, shares a few insights on how to have a successful interview.

Purchasing Apartments through TAMA 38 Projects

If you are interested in purchasing an apartment from a contractor through a TAMA 38 project, you should know that the process is completely different from purchasing a new apartment from a contractor or the purchase of a secondhand apartment.

Considering Dismissing an Employee? Five Rules of Thumb to Keep You from Running into Trouble

You have decided to dismiss an employee. Here are five rules of thumb for conducting a hearing proceeding. These are designed to help you through the process, as well as to minimize the risks of lawsuits and employee demands for monetary compensation on the basis of unlawful dismissal.

Failed Attempt by Owners of Tel Aviv Building’s Basement to Convert Office Space into Apartments

The Tel Aviv District Appeals Committee recently set aside a building permit granted by the city of Tel Aviv to the owner of office space in a building designated for demolition under TAMA 38 who sought to convert the space to residential use.

City of Givatayim to Freeze All Future TAMA 38 Projects in East Givatayim for Two Years

Givatayim intends to transform the city's east with a series of "Pinui-Binui" projects to be built along Ben-Gurion Street on the city lines between Givatayim and Ramat Gan. In order to advance the plan, the Tel Aviv District Committee for Planning and Construction approved Givatayim’s request to prohibit the issuance of permits for TAMA 38 in the same area for a period of two years.

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.

Smart City – Israel's Innovative Technologies

The future is here and Israel’s innovative Smart City technologies are creating a pathway for the nation as well as the world. Central to this crucial development is a remarkable collaboration between the private sector and the government.

The National Committee for Planning and Construction for Areas Prioritized for Residences Approves Urban Renewal Plan

The National Committed decided, for the first time, to submit an urban renewal plan for the residential neighborhood of Kiryat Moshe in Rehovot.

Main Aspects of Plan for Tel Aviv 3rd Quarter Will Enable Construction of 8,000 New Apartments through TAMA 38

The Tel Aviv District Committee for Planning and Construction recently gave final approval for the Tel Aviv 3rd Quarter Plan, making possible the construction of 8,000 new residential units. The road to the plan's final approval, a plan prepared in accordance with section 23 of TAMA 38, was long and filled with obstacles.

Employers, Do You Have a Central Severance Pay Fund? You Should Read This

In 2017, the Israel Tax Authority published a circular addressing the use of accumulated balances in central severance pay funds, and many employers began liquidating these severance pay funds. It is important to note that the liquidation of a central severance pay fund also has implications on labor relations with your employees.

TheMarker Op-Ed: How to Enjoy Blockchain Innovation

Adv. Daniel Israeli, a member of Barnea's Capital Markets Department, wrote an op-ed piece for TheMarker on the need to create an appropriate regulatory framework for the issuance of digital currencies.

Categories: Blockchain | Capital Markets | Financial Regulation

State Comptroller’s Report on the Financing of Political Parties

The State Comptroller, Judge Joseph Shapira (retired), published an audit report on the financing of political parties in relation to parliamentary parties in the 20th Knesset for the period from April 2015 until year-end 2016.

Seminar on Data Protection and Privacy for the Israeli Directors' Union

Our firm is hosting the Israeli Directors' Union today for a seminar on data protection and privacy. During it we will discuss the new European privacy regulations (GDPR) and directors' exposure in the age of privacy.

Categories: Consumer Protection | Corporate | Privacy Law | Regulation

Legal Documents Every Startup Needs

Following its incorporation, every startup company needs a variety of essential legal documents in order to launch its vision and conduct its business. This includes: founders’ agreement, non-disclosure agreement, terms and conditions, employee stock option plan and business plan.

Pinui-Binui– The Full Legal Guide

The “Pinui-Binui” transaction is a common name for combination transactions, in which existing residential neighborhoods are vacated in favor of the reconstruction of a new neighborhood in the same complex. At the same time, existing tenants trade in their old apartments for new ones in a modern neighborhood with new and developed environmental infrastructure.

Lecture on Legal Issues in the Recruiting Process

Our Head of our Employment Department, is participating today in a training program held by the People Management Association. She will lecture on legal issues in the recruiting process.

Categories: Employment

French Culinary Brand Fauchon Brought to Court

Roni Lish, the minority shareholder in the franchise company of the French culinary brand Fauchon, is suing his partner in the franchise. Roni claims his partner acted to reduce the value of the company in order to control it and to remove him from the company. Roni Lish is represented by Advs. Zohar Lande and Gilli Cohen-Arazi of our firm's Litigation Department.

Categories: Commercial Litigation | Litigation

High Court of Justice Suspends Re-Examination of RGE's Proposal for Knesset Channel Tender

The High Court of Justice ruled in a temporary order that the Cable and Satellite Broadcasting Council should explain why it did not announce RGE as the winner of the tender for the operation of the Knesset Channel, following the disqualification of Channel 20's offer. RGE is represented by Advs. Zohar Lande, Ronen Reingold, Adi Shoham, and Itay Hatam of our firm's Litigation Department.

Categories: Administrative Law | Litigation

Sports Tech - When Sports Join Up with Technological Innovation

In recent years, tremendous progress has been made in introducing know-how and technology into sports – despite this being a conservative world concerned that the introduction of new powers might compromise the ethos of sportsmanship.

Telemarketing Restrictions

An interview following the Ministry of Economy and Industry's recently published draft bill placing restrictions on telemarketing.

Categories: Corporate | Regulation

Lawsuit Filed against Founder of Digital CoinDash

Our firm represented Guy Aharonovski in a lawsuit against his former partner in CoinDash, a platform for managing investments in cryptographic currencies. Aharonovski is claiming his former partner disqualified him from his share in the company, founded Queen-Dash behind his back, and issued tokens called CDT that enabled the use of the platform provided by the company.

Categories: Capital Markets | Litigation

Substantial Fee to Be Charged for Filing a Motion to Certify a Class Action

At the end of November 2017, the Constitution, Law and Justice Committee of the Knesset approved a revised draft bill to amend the Courts Regulations (Fees), whereby parties filing a motion to certify an action as a class action will be charged a court fee.

Barnea & Co. Represented EXO Technologies in Acquisition by Lear

Barnea represented Israeli startup EXO Technologies, a developer of GPS technology for autonomous and connected vehicle applications, in its acquisition by the American corporation Lear.

Categories: Corporate | High Tech | Investments | Mergers and Acquisitions | Start Ups

Seminar on Data Protection and Privacy

Barnea is hosting today another round of lectures for startups and entrepreneurs on the subject of data protection and privacy. Also to be discussed is the obligation of accessibility on the Internet. In addition, the seminar will feature a guest lecture from the Israeli Digital Organization.

Categories: Internet | Privacy Law | Start Ups

Should a non-profit organization be allowed to invest funds in financial assets?

The issue of an NPO’s investments of unappropriated funds (funds that are not immediately needed within the scope of its activities or for the purpose of advancing its objectives, whether on a short-term or on a longer-term basis) is not regulated within the scope of the Non-Profit Organizations Law or the Income Tax Ordinance. Asaf Shalev contributed an article to Globes in regard to this matter. (In Hebrew)

Categories: NPO

Electricity Authority Hearing: Competitive Proceeding for High-Voltage and Low-Voltage Solar Installations

In September 2017, the Electricity Authority published a Call for Bids for the purpose of determining the rate for electricity generation using photovoltaic (PV) technology at PV plants to be connected to the high-voltage and low-voltage grids.

Israel's Successful Incubators and Accelerators Develop the Future

In its innovative journey, Israel has exhibited technological achievements and economic advancements that have proved it to be one of the strongest leaders in the entrepreneurial world. Through the aid of the Israel Innovation Authority or accelerator programs, Israeli startups are able to receive funding at very early stages of their venture, or a set of tools and insights that fast-track startups in terms of their management skills, business focus, and marketing capabilities.

Privacy in the Workplace - the Use of Cameras

At the end of October 2017, the Privacy Protection Authority published a guideline about the use of surveillance cameras in the workplace and within the framework of employment relations. This guideline does not come as a surprise, as a draft of it was already published last year for public comments.

EU Privacy – Which Jurisdiction Applies?

In an opinion issued to the European Court of Justice, the Advocate General of the Court stated that according to current legislation, any data protection authority in the European Union can take action against a breach of the privacy legislation enforced by that authority, even if the entity alleged to have contravened the legislation is located in another Member State.

 

Minimum Wage Update

On October 30, 2017, an amendment to the Minimum Wage Law was enacted after being approved during the second and third readings in the Knesset.

Class Action against Espresso Club Rejected by the Court

The Central District Court has rejected the application for a class action filed in 2015 against Espresso Club for misleading customers about the method of charging an acquired package of coffee capsules. In addition, the court ordered the plaintiff to pay all legal expenses. Espresso Club was represented by Advs. Zohar Lande and Itay Hatam of our firm's Litigation Department.

Categories: Class Actions | Commercial Litigation | Litigation

A Female Employee Notifies She Is Pregnant – A Few Important Facts!

Has one of your employees notified you that she is pregnant? Here are a few points you should know

Lecture: Employment Termination at the Human Resources Conference of the North

Our head of the firm's Employment Department, has been invited to take part in the Human Resources Conference of the North. She will lecture on the proper procedure for dismissing employees.

Categories: Employment

Israel Securities Authority Defeated in Proceeding against Portfolio Manager

The Administrative Enforcement Committee rejected an administrative claim filed by the Israel Securities Authority against portfolio manager Ran Amitai for using inside information on a deal with the biotechnology company Compugen. Ran Amitai and Cramim Capital Markets were represented by Dr. Zvi Gabbay and Adv. Sapir Malul.

Categories: Capital Markets | Compliance | Financial Regulation | Regulation

District Court Rejects Scheduled Vote of Purchase Group United Sarona

The Tel Aviv District Court accepted the request of over 50 members of the purchase group United Sarona, represented by Barnea's Head of Litigation, Adv. Zohar Lande, to prevent a vote at the meeting scheduled for today. In the motion that was presented, it was argued that in the process of convening the meeting there were material flaws, including a lack of information.

Categories: Commercial Litigation | Litigation | Real Estate

Your Employees Are Beginning to Unionize – What You Need To Know?

Many employers worry about the day they might discover their employees are organizing and joining a labor union. This concern is natural, since an employer used to running its business as it deems fit, and according to its business needs, is not interested in sharing the helm with its employees’ representation.

 

Revision of the Regulations Requiring Websites and Applications to be Accessible for People with Disabilities

The Knesset Labor, Welfare and Health Committee recently approved a comprehensive revision of Regulation 35 of the Accessibility to Online Services Regulations under the Equal Rights for People with Disabilities Regulations (Service Accessibility Adjustments), 2013.

Registration for an Application Is Tantamount to a Binding Contract

The New York Circuit Court of Appeals ruled recently that when a new user confirms the “terms of service” and “privacy policy” on an application’s registration screen, even without perusing the legal documents provided through these links, such approval suffices to raise the user’s legal engagement with the company to the standing of a binding contract.

How Does TAMA 38 Begin?

Dozens of TAMA 38 projects are never implemented for a variety of reasons. Here is a short overview of points to help you ensure your TAMA 38 project is put into practice.

Ministry of Communications to Form a Tender Committee for the Allocation of a New Cellular Spectrum

The Ministry of Communications has appointed a tender committee to formulate and draw up a tender for the allocation of a spectrum for the provision of advanced cellular services.

Marie Tsion to Address the Various Legal Issues of Job Acceptance

Adv. Marie Tsion, Head of the Employment Department, will lecture today at the Human Resources Forum of the North on legal issues related to job acceptance: evaluation centers, refusals, and the law for the prevention of discrimination.

Categories: Employment

Who Owns Employee-Created Inventions: the Employer or the Employee?

We were interviewed by TheMarker on the subject of who owns the Facebook page of a popular TV program—the host or the network and asserted that all intellectual property created by a worker in the framework of the workplace belongs to the employer.

Categories: Employment | Intellectual Property | Litigation

Government Approves National Policy for Safe Identification

Israel's government recently set forth a decision approving the key points of a national “safe identification” policy. The purpose of this policy is to define how a person’s identity is to be verified when receiving government services in a digital mode, in order to improve the services being provided to residents, and to simplify the access to these services.

September 2017 News Flash – Employment Law

Several new updates regarding lifting the corporate veil, calculating severance pay for hourly employees and issuing electronic pay slips.

Consumer Protection Law Prescribes a General Arrangement for Canceling Transactions

An amendment to the Consumer Protection Law was enacted recently, regulating the ways by which consumers can cancel transactions and imposing obligations on businesses to disclose to consumers how they can cancel transactions.

Israeli Innovation in Bolstering the Water Supply

One of the great ironies of life on earth is that, on a planet that is approximately 75 percent covered in water, the demand for safe drinking water is higher than the supply. Fresh water makes up only about 2.5% of the total water supply, and for a continuously growing population, this creates some limits. Fortunately, technological innovations are creating solutions for a world that needs more water, and Israel is leading the way.

Risks in Boards of Directors’ Work

“How did the board approve this?” Headlines like this pop up each time it is announced the Israel Securities Authority is investigating a public company’s transactions with its controlling shareholder, such as the latest allegations of deals between Bezeq and its controlling shareholder. But the real question that should be asked is, “Was the board given the right tools to perform its work?”

HR Challenges for Startups

Our Head of the Employment Department, will lecture today to entrepreneurs at advanced stages who are participating in StarTAU's entrepreneurial program. The lecture will focus on recruitment of employees and the various challenges involved in recruiting human resource professionals in start-up companies

Categories: Employment | Start Ups

Monetary Authority of Singapore to Begin Regulating the Issuance of Virtual Currencies

Adv. Daniel Israeli was interviewed by TheMarker after the Monetary Authority of Singapore (MAS) announced it would begin regulating the issuance of virtual currencies (ICO). Daniel noted that Singapore has developed into a destination of sorts for ICOs, and thus the MAS' decision will certainly change the rules of the game.

Categories: Capital Markets | Financial Regulation | Internet | Regulation

Knesset Approves Elimination of Fees Imposed on Databases

In early July 2017, the Knesset's Constitution, Law and Justice Committee approved the elimination of the compulsory registration fees and periodic fees paid by database owners.

Israel’s Sale Law Commissioner Clarifies that Urban Renewal Transactions Must Comply with Provisions of Sale Law

On July 24, 2017, the Sale Law Commissioner in the Israeli Ministry of Construction and Housing published two clarifications concerning the Sale Law and urban renewal projects.

Can a deceased person's lawsuit automatically be terminated?

We were interviewed on a financial radio program regarding the fate of a lawsuit when the plaintiff passes away. We explained that the lawsuit continues via the heirs or the estate manager, who enter the shoes of the deceased. (starting at min' 9.40)

Categories: Litigation

High Court Issues Interim Order on Channel 20’s Winning Bid for Knesset Channel

RGE, represented by Adv. Zohar Lande, Ronen Reingold and Adi Shoham of Barnea, petitioned the High Court of Justice over the results of a tender concerning the operation of the new Knesset channel. It requested an interim order that would prevent the agreement with Channel 20, who had won the tender. In a hearing held today at the High Court of Justice, the interim order was issued, freezing the results of the tender.

Categories: Commercial Litigation | Litigation

Application for a Class Action Suit against the College of Management

Our firm is representing a former teaching assistant at the School of Business Administration at the College of Management in an application for a class action suit submitted to the Labor Court.

Categories: Litigation

New ILITA Guidelines Prescribes Criteria for Obtaining Consent to Provide Direct-Mail Services

Recently, ILITA (the Israel Law, Information and Technology Authority) published new guidelines addressing the interpretation and implementation of provisions of the Protection of Privacy Law relating to direct mail and direct-mail services.

Must-know labor laws for Israeli teens

Our Head of the Employment Department at Barnea, in an article for The Marker on the subject of youth employment during the summer vacation.

Categories: Employment

Barnea & Co. Represented Avgol in the Sale of its Rights in the Barkan Plant

Barnea represented Avgol in the sale of its rights in the Barkan plant for NIS 52.5 million. Avgol is in the process of transfering its production center in Israel to Dimona.

Categories: Capital Markets | Corporate | Mergers and Acquisitions | Real Estate | Real Estate Transactions

Israel's New Opportunity in Renewable Energy

Israel has for years led the world in technology and entrepreneurial growth and development. After building in a number of key tech areas like cyber security and biotech, the nation has turned its sights on bolstering capabilities in renewable energy. Recently, the Israeli government announced a new initiative focused on pushing development of renewable energy into the 21st century. This creates a prime opportunity, for Israel’s energy companies and for investors looking to become part of this growth in the years ahead.

Adv. Asaf Shalev to lecture at the Startau Entrepreneurship Course

Adv. Asaf Shalev will lecture today on the topics of founders agreements and IP at the Entrepreneurship Course of Startau, Tel Aviv University Entrepreneurship Center.

Categories: Intellectual Property | Start Ups

Updates and Reliefs to the Rules about Industrial Wastewater

New rules came into effect recently that constitute an amendment and update of the principal rules addressing industrial wastewater flowing from factories into the sewer system.

China Increased Tech Investments in Israel

Within a nation exceeding 8.5 million people, Israel is a world leader in technology and innovation, consistently producing an impressive number of tech startups. From drone technology and ride sharing applications, to unique online shopping platforms and breakthrough technologies in the field of life science, Israel’s tech companies cover a myriad of fields. It therefore comes as no surprise that Chinese investors are eager to delve into the countless possibilities, which stem from the advancement of Israeli tech companies.

New Court Decision on Transfer Pricing Taxation

New court decision on transfer pricing taxation may shift structuring of M&A transactions from shares to assets.

Barnea & Co. Represents Africa Israel Europe in a Commercial and Residential Project in Serbia

Barneais representing Africa Israel Europe in the establishment of a new commercial and residential project in Serbia called "Skyline Belgrade" at an estimated cost of Euro 200 million.

Categories: Infrastructure Project Finance | Real Estate

Adv. Ronit Offir was Appointed as a Judge to the Tel Aviv Magistrate's Court

Adv. Ronit Offir, Partner in the Litigation Department at Barnea, was appointed as a judge to the Tel Aviv Magistrate's Court. Adv. Offir joined our firm in 2010 and has extensive experience in representing Israeli and international companies in complex litigation cases before the District Court, the Supreme Court and in arbitration proceedings.

Categories: Litigation

Barnea & Co. represents Zeev Rom

The Haifa District Court ruled that Gad Zeevi would have to pay businessman Zeev Rom USD 1.5 million in brokerage fees in respect of a deal in which Zeevi acquired 20% of Bezeq in 2000. Adv. Zohar Landa and Adv. Moran Bickel from the litigation department at Barnea, represented Zeev Rom.

Categories: Commercial Litigation | Litigation

Barnea & Co., together with the ACC, are Hosting an Event on Privacy

Barnea, together with the Association of Corporate Counsel (ACC), is hosting today an event on privacy. This is the first event in Israel discussing the implications of privacy on organizations. During the event, we will cover such topics as the new EU regulations on the protection of privacy and information and the right to financial privacy in Israel. In addition, we will discuss the recently published regulation on organizations’ database security.

Categories: Privacy Law | Regulation

Espresso Club Files an Appeal to Increase the Court Expenses to the Sum of Half a Million Shekels

After the rejection of the Nespresso and Nestle case against Espresso Club in which they alleged copyright infringement, Espresso Club, represented by our firm, filed an appeal regarding the amount of expenses determined by the District Court, claiming that the amount is unreasonable in relation to the actual expenses.

Categories: Derivative Actions | Litigation

Insolvency in a Nutshell

Insolvency proceedings are an integral part of business-commercial activities, in circumstances whereby a person or corporation might need to institute proceedings to rehabilitate its business activities or even to liquidate the company.

Marie Tsion to participate in Human Resources Forum Half Year Event

Adv. Marie Tsion, Head of the Employment Department at Barnea, will participate today in the Human Resources Forum Half Year Event and will discuss the issue of protecting employee privacy in the workplace.

Categories: Employment

Protecting Your Start-Up with Company Registration in Israel

Israel has long been acknowledged and admired for its vibrant start-up culture, fostered through government investment and pro-business policies. Further, the national focus on business development provides a regulatory structure that protects business owners from creditors and ensures proper structure for the public – incorporation. To take advantage of the corporate structure, you need to ensure that you follow the proper registration process, and select the right corporate vehicle to fit your emerging business model.

Tel Aviv University Innovation Conference

For the second year, Barnea is taking part in the Tel Aviv University Innovation Conference. In the framework of the conference, Micky Barnea, will lecture on the subject of the legal challenges entailed in late staged startups and will judge in the competition final with other mentors from Shazam, Prezi, Capsula, Strauss Group and IAI.Adv. Yuval Lazi and Ariella Dreyfuss, will judge in the start-up competition in the Fintech, Gaming and IoT sectors. Yuval Lazi will also participate in a panel discussion on funding a start-up, together with a representative of the Office of the Chief Scientist, Tau Ventures' CEO and the CEO of "Cockpit", El-Al's start-up support program.

Categories: FinTech | Gaming | High Tech | Start Ups

New Amendment to the Sales Law - A Developer May Not Deposit a Value Added Tax (VAT) Guarantee

The Knesset passed a new amendment (Amendment 9) to the Sales Law (Apartments), whereby developers who build apartments for sale are permitted not to deposit sureties for the VAT component of the transaction, thus decreasing the sum deposited by them.

A New Amendment Eliminates the Need for Small Companies to Report Quarterly

An amendment to the Securities Regulations (Periodic and Immediate Reports) was promulgated in March 2017, whereby small reporting corporations shall be able to publish their financial statements on a bi-annual basis, provided that they have not issued bonds that are being held by the public. In this regard, a “small corporation” is defined in the said regulations.

Our Firm will lecture at Azrieli College of Engineering Startup Accelerator

Our firm lectured today on employment aspects for startups at the AtoBe – Azrieli College of Engineering Startup Accelerator.

Categories: Employment | Start Ups

Barnea & Co. represented Avgol in issuance of a New Series of Bonds

Barnea represented Avgol Industries 1953 Ltd in connection with the issuance of a new series of bonds in the amount of NIS 197 Million. Avgol is one of the biggest manufacturers in the world of non-woven fabrics for the hygiene market. Its securities are traded in the leading indices on the Tel Aviv Stock Exchange.

Categories: Banking & Finance | Capital Markets | Corporate Finance | Financing | Mergers and Acquisitions

Overcoming Common Recruitment Challenges when Entering a New Market

Barnea, together with Nisha Global, will host today a seminar on how to overcome common recruitment challenges when branching out globally to foreign markets. Adv. Marie Tsion, Partner and Head of the Employment Department, will lecture on the legal aspects relating to the activity of a company abroad.

Categories: Employment

New Data Security Regulations Contain New Requirements for Database Administrators

The Constitution, Law and Justice Committee recently approved the Privacy Protection Regulations (Data Security), 5767-2017, which enacts new and comprehensive norms for entities that manage or hold databases regarding data security procedures. In practice, these regulations affect many entities in the Israeli marketplace, from small businesses managing client information databases to large corporations.

Barnea & Co. Represented Viola Private Equity in an Investment in Similar Web

Barnea represented Viola Private Equity in an investment of USD 50 million in Similar Web, a leading digital market intelligence platform that provides insights for websites and applications.

Categories: Corporate | Corporate Finance | Privacy Law | Start Ups

Medigus Ltd. Completed a Nasdaq IPO

Barnea represented a group of US underwriters, led by H.C. Wainwright , LLC, in the process of submission of Medigus Ltd. of a prospectus for the Nasdaq listing. Medigus raised USD 7.5 million and will be traded on Nasdaq in parallel with its listing on the Tel Aviv Stock Exchange. Medigus Ltd is an Israel-based company active in the medical sector. It specializes in developing endoscopic procedures and devices.

Categories: Capital Markets | IPOs and Public Offerings

Israeli Leadership and Growth in Smart Mobility

Technological solutions are developing every day, world-wide. In Israel, the transportation sector provides impressive examples of innovation at work. Urban growth naturally reaches a saturation point, at which people either need to move or commute farther each day, creating higher costs and greater safety concerns. Smart mobility consists of the movement to make transportation easier, safer, more environmentally friendly, and more efficient. And Israel has taken a leadership position in developing companies and technologies that help make it possible.

TAMA 38 – The Complete Guide

The Israeli government resolved to approve and implement a national outline plan, known as TAMA 38, to reinforce buildings from the risk of earthquakes. To which buildings does the plan apply and what should one know before signing a contractual agreement with the contractor?

New Labor Court Ruling on The Subject of Age Discrimination

The subject of discrimination in the labor market in general, and the subject of ageism in particular, has lately become a hot topic in the public discourse. A recent ruling handed down by the Regional Labor Court in Tel-Aviv in the Bat Sheva Simchi vs. Maabarot Products Ltd. case addressed the issue of age discrimination.

The Right to Review Digital Database

Within the scope of a new directive published recently by the database registrar at the Israeli Law, Information and Technology Authority, entities, such as service-providers, that retain recordings of telephone conversations or chat correspondence with their customers will be forced to enable their customers (the subjects of the information) to also access information of this type. This according to the right of access prescribed in the Privacy Protection Law and the regulations instituted by virtue thereof.

Carve-out Plans for Company Employees

One of the common remuneration mechanisms in startups and technology companies is the granting of options to employees in addition to or, sometimes, in lieu of, the traditional remuneration component – the cash salary.

Nespresso Loses Suit Filed against Israeli Company, Espresso Club

The Tel Aviv District Court rejected the lawsuit filed by Nespresso and the global food company, Nestle, against the Israeli company, Espresso Club. Nespresso claimed that Espresso Club’s advertisement, which uses a look-alike of George Clooney, violates the intellectual property of Nespresso and constitutes unfair competition. The Court rejected Nespresso's claims and ordered it to pay Espresso Club NIS 110,070  in legal costs. Espresso Club was represented by Adv. Zohar Lande, Adv. Itay Hatam and Adv. Gili Cohen-Arazi from Barnea

Categories: Commercial Litigation | Intellectual Property | Litigation

Judicial Oversight of Board Decisions - Beyond the Business Judgement Rule?

Adv. Zohar Lande and Adv. Gilli Cohen Arazi from the Litigation Department at Barnea in an article for Chambers and Partners on recent trends in Israeli case law, which may indicate a change in the Israeli courts' attitude to judicial intervention in the business judgment of the Board of a corporation.

Categories: Derivative Actions | Litigation

Class action against Directors

The Tel Aviv District Court approved an action as a class action filed by the minority shareholders of Delek Energy Systems Ltd. against its controlling shareholder and officers of the company.

Innovation Cocktail Event Hosted Together with the Israel-South Africa Chamber of Commerce

Barnea, together with the Israel-South Africa Chamber of Commerce, is hosting today a cocktail event to promote networking between South African businessmen living in Israel and Israeli businessmen.

Categories: Private Clients

Does the US Visa Boom Herald New Opportunities for Law Firms?

Adv. Marie Tsion, Head of the Employment Department at Barnea was interviewed by The Lawyer regarding the effect of the E-2 visa programme on the legal market. Marie commented that the E-2 investor visas will allow US companies, entrepreneurs and employees to start business activities in Israel more easily. This visa is likely to increase the number of US companies establishing activities in Israel.

Categories: Corporate | Employment

Doing Business in Israel – Practical Law

Doing Business in Israel? A Q&A guide to doing business in Israel written by Barnea was published in the Practical Law website. The guide gives an overview of the legal system, foreign investment, regulation, and other issues pertaining to Israel.

Categories: Antitrust and Competition | Corporate | E-commerce | Employment | High Tech | Intellectual Property | Tax

Eliezer Fishman Is Not Alone: Every Year 19 Thousand Israelis Declared Bankrupt

Our Litigation Department was interviewed by Maariv's "The Weekend" following Eliezer Fishman's declaration of bankruptcy. We noted there are ways to prevent the loss of all family assets, even in the event of bankruptcy, and to avoid involving the family assets with business assets.

 

Categories: Insolvency and Debt Arrangements

Loans Guaranteed by the State for Social NPO’s (With No Personal Guarantee)

For the first time, social NPO’s can enjoy attractive, convenient loan terms guaranteed by the State for funding an investment or working capital in the NPO, and without providing a personal guarantee.

Important Information about New Tax on Owners of Multiple Apartments

The new law prescribes that, as of January 1, 2017, every taxpayer must pay tax annually (January through December) for every residential apartment that he owns in excess of two apartments, at the sum defined pursuant to the provisions of the law. The taxpayer will be allowed to choose which of his apartments he deems to be his first two apartments, and which shall be taxable under this law.

Privacy and Data Protection Law

On 17/01 Barnea together with the ACC, will host an event on Privacy and Data Protection Law affecting employees in the workplace.We will lecture on the Israeli Privacy Aspects.

Categories: Employment | Privacy Law

Do NDAs Really Protect Startups?

Investors in startup companies need to learn as much about those companies as possible to make an informed decision. You do not want to go in blind before you put money into a startup a company. Still, the company in which you seek to invest needs to protect its confidential and proprietary information; otherwise, it stands to lose the benefit of introducing an innovative solution to the market.

Globes Op-Ed: Restoration of Funds for Victims of Stock Manipulation

In an op-ed published in Globes, we discussed the restoration of funds for victims of stock manipulation, focusing on the question of whether the state is obligated to repay a portion of the fine directly to the victims through a distribution mechanism.

Categories: Capital Markets

Innovations in the Israeli Partnerships Legislation

In order to improve the Israeli partnership market and in order to bridge the wide gap that exists between partnership laws in Israel and the partnership laws in other countries, in December 2016, the Ministry of Justice published a draft Memorandum of Law – Partnerships.

Barnea represented Belectric Israel in the negotiations leading to the conclusion of an EPC and O&M Agreements in respect of the Ashalim PV solar power plant

Our Infrastructure Department represented Belectric Israel, which was selected to construct and operate a new 30Mwp PV solar power plant in Ashalim. Belectric Israel is an affiliate of Belectric GmbH from Germany, engaging in the development and promotion of photovoltaic (PV) solar systems world-wide.

Categories: Energy | Infrastructure

2016 Overview of Israel's Third Sector Regulation and 2017 Trends

2016 was characterized mainly by the completion of a number of processes and initiatives promoted in recent years, mainly relating to tax issues and the recognition of non-profit organizations as public institutions entitled to tax benefits for donations received.

Create Effective Website Terms and Conditions

Your website exists to help your clients and customers find and interact with you. You may include e-commerce capabilities, or you may primarily seek to inform people about your company and your products and services. Whatever your goals are, though, you must be on guard; people naturally seek to rely on what they see online. This can be a good thing, but you need to create parameters around what they can and cannot rely on your site to do.

Round-table Regarding the Employment of Arab Interns and Lawyers

Adv. Micky Barnea  will participate in a round-table meeting with other leading law firms regarding the employment of Arab interns and lawyers. The meeting was initiated by the Deans of the Universities' Faculty of Law.

Categories: Employment

Update on Employee Rights – Minimum Wage, Annual Paid Leave, Pension

Three updates to employee rights (Minimum Wage – Annual Paid Leave – Pension) came into effect on July 2016. The following is important news about the next update to employee rights, which is expected to come into effect on 1.1.2017.

Israel’s First Open Call for Bids for Offshore Oil and Natural Gas Explorations

November 2016 marked the first time that the Ministry of Infrastructures and Energy invited an open international call for bids for 24 licenses to 24 blocks (each not exceeding 400 km2) in Israel’s economic waters at a distance of at least 7 kilometers from the shore.

The Israeli Public Utilities – Electricity Authority to Hold a Hearing Regarding New Quotas for Photovoltaic Power Plants

In October 2016, the Electricity Authority published a draft resolution to hold a hearing regarding the arrangement of a competitive proceeding to set the tariff payable for electricity generation using photovoltaic technology.

Regulation of Crowdfunding in the UK, US and Israel: a Comparative Review

Dr. Zvi Gabbay, Partner and Head of the Capital Markets Department at Barnea, in a comparative review of the regulation of crowdfunding for Butterworths Journal of International Banking and Financial Law. The article discusses how three jurisdictions, the UK, US and Israel, have dealt with the regulatory aspects of the equity crowdfunding sector, comparing and contrasting the approaches taken by the regulators.

Categories: Capital Markets | Compliance

Crowdfunding: Funding Companies in the Startup Nation

For many small businesses around the world, crowdfunding – the pooling of usually small investments from a large group of investors – facilitates the ability to start a business without large institutional investments in the company. The portfolio of crowdfunding investors is diverse and is comprised of a broad array of ROIs (returns on investment). Investors may be donating to a specific cause, seeking repayment with interest or claiming equity in the company.

Less Remuneration, More Responsibility

The issue of officers’ responsibility in general, and of directors in particular, is one of the key issues addressed in companies and securities laws in Israel. The subject has been deliberated, analyzed and gradually expanded over the years and, without doubt, onerous and extensive responsibility is imposed on directors in the current legal environment. 

Barnea & Co. Represents iTrader, an Online Forex Trading Company

Barnea represents iTrader, an online forex trading company, which is under investigation by the Israeli Securities Authority. Adv. Zohar Lande and Adv. Moran Bickel from the Litigation department were interviewed by The Marker and commented that they hope the investigation by the ISA, which focuses on the company's activities during the period in which it was entitled to act as a trading platform, will end soon.

Categories: Litigation

Voluntary Retirement Program

Following reports on the voluntary retirement programs that are promoted by the Israel’s largest banks, our Head of the Employment Department at Barnea was interviewed by Globes. She commented that a successful voluntary retirement program is one which creates a situation where the employer offers retirement to certain workers, without harming the functioning of the organization, which often relies on the knowledge and experience of the veterans.

Categories: Employment

Barnea & Co. Represented Hadad Brothers

Our firm represented Hadad Brothers, Worldwide Judaica Artists, in a claim by a service provider with an independent business, that after 17 years of engagement argued for a recognition of an employee-employer relationship and filed a claim for various social benefits in the sum of 1.5 Million NIS.  After 2.5 years of legal proceedings, the court this week denied the claim in full.

Categories: Labor Law Litigation

Seminar for Students From the IDC Legal Clinic for Start-Ups

Barnea is hosting today a seminar for students from the IDC Legal Clinic for Start-Ups on various issues including founding agreement, labor law and tax issues, privacy policy, entrepreneurship and more. The cooperation is part of the firm's pro bono activities.

Categories: High Tech

After 9 Years of Litigation, David's Geller Claim Against Yitzchak Omer, Who Was Represented by Barnea & Co., Was Dismissed.

As previously published, Geller had filed a lawsuit alleging fraud in the amount of nearly NIS 70 million. Even though the main claim for fraud was dismissed, the District Court obliged Omer to pay millions of NIS to Geller deciding that they were granted to Omer as a loan.

Geller and Omer both appealed to the Supreme Court. The Supreme Court denied Geller's appeal entirely, accepted Omer's appeal and returned the case to the District Court.

This week, the District Court dismissed the action entirely and accepted Omer's argument that the funds were transferred to him as part of a share purchase transaction. The Court ruled that under these circumstances, Omer does not need to reimburse the funds or to transfer any shares.

Categories: Commercial Litigation | Litigation

Hackathon for Sustainable Urban Mobility

Adv. Asaf Shalev will serve as a mentor and participate at the Herzliya sustainable urban mobility Hackathon, which takes place on October 27th , in cooperation with the European Union.

Categories: Environmental Law | Start Ups | Transport

Israeli Leadership in Water Technologies

Despite the fact that water covers three quarters of Earth’s surface, countries all over the world suffer from potential or current water shortages. Water consumption well outpaces supply, particularly in arid nations that struggle to meet their agricultural water needs. Israel, as a nation more than 50 percent covered in desert, has grappled with this problem since its beginnings. The technologies it has developed in response allow it to flourish, and it is doing more every year to expand those technologies around the world.

Barnea & Co. Represented the Private Equity Fund IGP Investment in Jacada

Barnea represented Israel Growth Partners (IGP)  in an agreement to buy 300,000 Jacada shares, 7% of the company's share capital, from Robert (Bob) Ashton's investment firm Kinetic Catalyst Partners.

Categories: Corporate | High Tech | IPOs and Public Offerings

Barnea & Co. represents Rafi Bar-Lev

Barnea represented Rafi Bar-Lev, former Salesman at the Israeli investment company Utrade of Aviv Talmor, whose operation was frozen by the Israel Securities Authority, at a hearing in the Tel Aviv Magistrate's Court.

Categories: Capital Markets | Litigation

Barnea & Co. Represents GBI Racing

Adv. Zohar Lande, Head of the Litigation department at Barnea is representing GBI Racing, a British company which provides betting services to Toto (the Israel Sports Betting Board). The company applied to the Minister of Finance, Moshe Kahlon, to reconsider the decision to ban horse racing wagering, which was approved by a government committee chaired by treasury Director General, Shai Babad.  The company contends that it was never given the opportunity to present other data to the committee on its behalf.

Categories: Administrative Law | Litigation

Class Actions in Israel- Overview and Contemporary Trends

The Israeli Class Action Law came into force in 2006, and formally regulates the proceedings applying to class actions in Israel. This type of action was available in Israel before 2006, but was much less developed. Since the advent of the Law, class actions have become a favored path of pursuing litigation where the damage caused to a single plaintiff is not significant and would usually not result in a claim against the party which caused the damage. The majority of class actions filed in Israel are consumer claims against corporate entities.

 

 

Deadline Extension for Making Internet Websites and Mobile Applications Accessible to People With Disabilities

A few days ago the Knesset Labor, Welfare and Health Committee enacted an amendment to Section 35 of the website accessibility regulations, called "the Equal Rights for People with Disabilities (Service Accessibility Adjustments) Regulations 5773-2013" (the “Regulations”).

How Brexit Might Affect the UK's Environmental and Energy Law

The European Union (EU) has driven environmental policy across Europe since its inception in 1992. With the United Kingdom’s (UK) referendum of withdrawal from the EU, though, how it responds in its energy and environmental legal and regulatory structure could affect not only the UK, but the European and even the global marketplace.

Construction Site Collapse in Tel Aviv

We were interviewed by Ynet following the collapsed parking structure in the Ramat Hahayal neighborhood in northern Tel Aviv. We commented that the function of the project manager is not defined in the Planning and Building Law. There are many responsibilities and it is not clear who is responsible for what.

Categories: Infrastructure

For the First Time, Tax Relief Has Been Approved for Contributions to an Israeli NPO Operating Abroad

In an unprecedented action, the Knesset Finance Committee has recently recognized an Israeli organization operating abroad as a ‘public institution’ pursuant to section 46 of the Israeli Income Tax Ordinance. Such recognition affords the non-profit organization, a tax benefit, by way of a tax credit to donors for their donations granted to that organization.

Fathers Granted Right to Paternity Leave - Marie Tsion for Walla

Adv. Marie Tzion, Partner and Head of the Employment department, published an opinion article in Walla Business, following the recently passed amendment, which granted fathers the right to paternity leave at the expense of already existing leave entitlements.

Categories: Employment

Amendment to the “Anti-Spam Law”

The Knesset's new anti-spam legislation includes any advertisement disseminated to the public at large that asks for a contribution or that constitutes non-commercial propaganda.

Trademark Protection: Registration and Enforcement

Part of how any company moves from startup to growing and thriving is to create a recognizable brand under which it operates. The brand provides a way to distinguish yourself with customers, and it all begins with images that you use to represent yourself–and no one else–to the world. To prevent others from using the same or similar images, though, you need to obtain trademark protection. A trademark is a kind of intellectual property protection that lets you defend your marketing ground against others who want to benefit from your symbols and imagery.

 

Extension Order Increasing the Allocations to Pension Insurance and Amendment to the Control of Financial Services

After about a year of uncertainty about the pension insurance allocation ratios according to Amendment number 12 to the Control of Financial Services (Provident Funds) Law of August 2015, the matter has recently been resolved.

Human Resources Forum Half Year Event

Our Head of Employment Department will participate in the Human Resources Forum Half Year Event taking place on September 14th. She will discuss the terms of employment in the weekly rest period.

Categories: Employment

Cellect Biotechnology Completed a Nasdaq IPO

On 31st July 2016 Cellect Biotechnology announced that it has completed its Nasdaq IPO, raising $8.4 million. Cellect Biotechnology will be traded on Nasdaq in parallel with its listing on the Tel Aviv Stock Exchange. Barnea represented a group of US underwriters, led by H.C. Wainwright , LLC, in the process of submission by Cellect Biotechnology of a prospectus for the Nasdaq listing. Cellect Biotechnology develops innovative technologies in the stem cells sphere.

Categories: Capital Markets | IPOs and Public Offerings

Agtech: Why Israel Makes Sense

If you think about fertile land for agricultural development, Israel probably doesn’t immediately come to mind. But perhaps it should. Despite a desert climate and the relative youth of the country, Israel’s technological development has created a boom in agricultural innovation, with technology that helps farmers and companies develop healthier, higher-quality foods. With the challenges facing the world’s farming and crops markets, this tiny country provides a wealth of opportunity moving into the future of agriculture.

Barnea & Co. represents Maurice Haliwa

Adv. Zohar Lande and Adv. Yaacov Gershoni from the Litigation Department at Barnea are representing Maurice Haliwa, a shareholder in Manor A.D. Construction & Investments Ltd. Mr. Haliwa filed a lawsuit against Jacky Ben-Zaken and Avraam Nanikashvili in the amount of NIS 18 million.

Categories: Litigation

Barnea represented Pharma Cosmetics Laboratories Ltd.

Our Litigation department represented Pharma Cosmetics Laboratories Ltd. (formerly HL Cosmetics Laboratories) in an IP claim against a beautician and her partner. The Rishon Lezion Magistrates Court recently awarded compensation in favor of Pharma and rejected the defendants' claim that the Copyright Act does not apply to the images and texts they copied from Pharma’s website.

Categories: Litigation

Hedge Funds Do Not Need Regulation

Dr. Zvi Gabbay, Partner and Adv. Sapir Malul from the Capital Markets & Securities Department at Barnea express their views in an article for The Marker that the damage involved in applying the regulatory regime for hedge funds is immeasurably greater than the benefits, and may even cause a collapse of the entire industry.

Categories: Capital Markets

Brexit Effect on Real Estate Market in Britain

This interview by Ynet explores the possible economic implications of the Brexit vote on real estate prices. Our expert advises to wait and see how much prices drop before buying or selling property in the country.

 

Categories: Real Estate

Further Concessions to Public Companies

A number of legislative amendments relating to the capital market have been promulgated recently, including

Israel: A Clean Tech Nation

Our world today looks very different from what we knew even twenty years ago. Climate change has emerged as a concern across the globe. With this, though, new opportunities have risen for investors and entrepreneurs in the area of clean and renewable energy. Israel has embraced this more than any other country by fostering growth and embracing policies to encourage and develop new small business in this area. More and more, Israel has stepped forward as the world’s leading clean tech nation.

Barnea & Co. Represents Hanan Mor Group

Barnea represents Hanan Mor Group, a public traded company, and other companies of the Hanan Mor Group, in a lawsuit filed against them by the contractor relating to a number of real-estate projects.  The contractor claimed damages and requested an order to prevent the forfeiture of bank guarantees. The court rejected the contractor 's request. The court also accepted in full the arguments raised by Barnea and criticized the conduct of the other party, pointing out that the version of the other side "raises questions". The court awarded Hanan Mor Group fees and costs in the amount of NIS 12,000.The Hanan Mor Group is represented by Adv. Zohar Lande, Adv. Itay Wigoda and Adv. Shachar Parnes from the Litigation Department at Barnea

Categories: Litigation

China-Israel Relations: What You Need to Know

China has a long-held reputation in the international community for being closed off from outsiders — a reputation that it cultivated for thousands of years. In recent decades, however, this past custom has rapidly been changing and China has become a world leader in manufacturing and production, leveraging a large population and an immense technological skill base. Today China is pushing for more growth, looking to drive innovation to launch its economy into the future. This has led to a trend of opening up to the world, and in keeping with that trend, China has begun to reach out to Israel.

Things you need to know about stock options

How  options are being used as a tool to solve the problem for start-ups of recruiting, remunerating, incentivizing and retaining quality employees.

Daniel Lorber, head of the firm’s Employee Benefits and Executive Compensation team,  published an article in the IDC Legal Clinic for Start-ups website.

In the article, Daniel  reviews the basic concepts of options and discusses how to adopt a stock option plan and the possible routes  available for the company.

Categories: High Tech

5 Myths About Renewable Energy

Sources of renewable energy include, among others, wind energy, solar energy, and hydroelectric energy. With different groups fighting to maintain or increase their relevance on the world energy stage, many myths about these energy sources pervade our understanding of how, and how well, they work. Five myths in particular emerge consistently, and should be overcome for you to better understand how the world is powered.

Barnea & Co. represented East and West Stores Ltd

Barnea represented East and West Stores Ltd, a leading importer of foods into Israel from the Far East,  in a dispute concerning the use of the trade name "East and West" and its trademarks.

Following an appeal to the Supreme Court filed by our litigation department,  the ruling made against the Company by the District Court ,which prohibited the Company from using the trade name "East and West" in some markets, was reversed (our firm was not involved in the District Court action).

The Supreme Court  also reversed the contempt of court ruling issued against the Company.

East and West Stores Ltd. was represented by Adv. Zohar Lande and Adv. Itai Wigoda. Adv. Ilan Blumenfeld assisted on the commercial aspects.

Categories: Litigation

Every country in crisis is an opportunity for invesotrs?

Adv. Gal Oren was interviewed by the prominent Israeli business newspaper, Globes, for an article regarding  the financial opportunities to be found in countries suffering economic crises.

Categories: Banking & Finance

Israel Broadens Definition of Accredited Investor

The prestigious Bloomberg BNA’s World Securities Law Report published  an article by Ron Shuhatovich discussing the recent order of the ISA regarding the accredited investor definition.

 

Categories: Capital Markets

Raising of the retirement age for women- Globes magazine

Our head of the employment department, was interviewed by Globes magazine (in Hebrew) regarding the raising of the retirement age for women "this move is important both for promoting gender equality and for the status of women in the labor market, but I believe that the Israeli labor market is not ready for it". 

Categories: Employment

Relocation Seminar for employers

Barnea is pleased to be hosting a seminar for employers on relocation on March 9, 2016. The seminar will take place at our offices. At the seminar we will discuss various aspects of the relocation process. Among the speakers will be Zvi Kan-Tor, partner at Kan-Tor & Acco, as well as Michal Daliot and Hanni Ben-Shimol from Relocation. The seminar is being held in cooperation with Kan-Tor & Acoo and Relocation office.

Categories: Employment

Entry of Foreign Mutual Funds to the Israeli Market

As part of the globalization of the Israeli capital market, the Financial Committee of the Israeli Knesset recently approved the Joint Investment Trust Regulations (Offer of Units of a Foreign Fund), according to which managers of foreign mutual funds may offer their funds to the Israeli public.

Barnea & Co. represents Edison Investment Research in an agreement with the Tel Aviv Stock Exchange

In order to assist investors in Israel and abroad make prudent and informed investment decisions, the TASE concluded an agreement with Edison Investment Research to promote a unique model that has not yet been tried in the Israeli capital market. The new model involves Edison doing independent analysis for high-tech and biomedical companies traded on the TASE. This venture will be partially sponsored by the Israeli Stock Exchange.

 

Categories: Capital Markets

Update of the “Proper Management Rules” of Israeli Charitable Organization (‘amutah’)

Approximately two weeks ago, the Israeli Ministry of Justice issued a new revised edition of the booklet “Guidelines for Amutot conduct”, as well as a new and revised edition of the supplementary guidelines booklet regarding the “Registration of Amutot, Name, Objectives and Regulations”. These booklets include a number of revisions and clarifications to the previous drafting.

Nespresso suing Espresso Club for using George Clooney lookalike advert

Adv. Zohar Lande, head of the Litigation practice at Barnea, is representing Espresso Club Ltd., an Israeli corporation, in an IP claim filed against it by Nespresso and Nestle.

Categories: Litigation

Barnea & Co. represents Espresso Club Ltd.

Barnea represents Espresso Club Ltd., an Israeli provider of home espresso machines using a capsule system, in a claim filed against them by Nespresso Israel, as well as the international Nestle and Nespresso corporations. The Plaintiffs’ claim that a TV commercial of Espresso Club, which features a George Clooney double, denigrates their brand's image and tarnishes Nespresso's reputation by ridiculing the Nespresso image. For the full article, Fox news, please click here

Categories: Litigation

Barnea & Co. hosted Unistream's investment committee

As part of our cooperation with Unistream, our office hosted the Organization's investment committee.

At the meeting, the participants presented a business venture developed during the program.

Adv. Micky Barnea and  Adv. Ronit Offir were chosen to be members of the jury, which also comprised CEO's and industry executives (eg. Microsoft), investment managers and directors of venture capital funds. 

 

Categories: NPO

District Court in Tel Aviv dismisses claim by Malibu against the Har-Gil family

Adv. Zohar Lande and Adv. Gal Livshits represented the Har- Gil family, the defendants in a claim for NIS 13 million filed by the real estate company, Malibu. The dispute related to payments allegedly owed by the Har-Gil family with regard to a plot of land owned by the Har-Gil family, developed by Malibu. The District Court in Tel Aviv dismissed the claim with prejudice.

 

Categories: Litigation

Adv. Isaac Hanania to represent Barnea as a judge in an investors panel

On January 10, Petah Tikva Entrepreneurial Community, in association with StarTAU, the Entrepreneurship Center at Tel Aviv University, will host a panel of investment experts. Participants will present their business venture ideas to the panel. 

 

Categories: High Tech

Employment law - Year End Summary

The year 2015 was characterized by legislative initiatives and interesting rulings relating to the labor market in Israel –employers became obligated to send written notices to job candidates about whether or not they have been accepted for employment, the issue of soccer games on Saturday and more.

A precedential judgment in the matter of transfer pricing shuffles the cards as to granting options to employees

A judgment in the Contira case was handed down two weeks ago in the district court which dramatically changes the Cost Plus issues relevant to certain Israeli companies which provideservices to a foreign relatedcompany. The judgment impacts on the situation where the Israeli company’s employees are granted options in the framework of Section 102 of the Income Tax Ordinance (capital track).

Finally, crowdfunding comes to Israel

Ariella Dreyfuss Adv. published an article in the leading legal English website "The Lawyer" discussing the new law in Israel relating to alternative means of raising funds. The goal of the law is to assist small Israeli companies in their efforts to raise funds through the social phenomena of crowdfunding, and the establishment of high-tech funds to be traded on a new index on the Tel Aviv Stock Exchange.

Categories: Banking & Finance | Capital Markets | Corporate | Financing | High Tech

Barnea & Co. appoints new partners

Effective as of January 1, 2016, Barnea appointed 3 new partners: Ilan Blumenfeld who specializes in Antitrust laws, the Kibbutz sector and advising on corporate matters; Liat Keisary who specializes in advising private clients and on real estate law; and Ariella Dreyfuss who specializes in advising technology companies and on M&A transactions.

 

Categories: Corporate

Release from liability, indemnity, and officers’ insurance in an Israeli charitable organization – is it possible?

Arrangements providing release from liability, indemnity and insurance to officers in an Israeli charitable organization ’amutah’ (or ‘amutot’ in plural; the Hebrew words referring to charitable organizations) (and in Israeli Public Benefit Companies) have been gaining momentum recently, both on the part of officers of such NPO’s who are seeking shelter under arrangements similar to those customary in business companies, and on the part of insurance companies, which consider third-sector organizations as being a market offering considerable untapped business potential.

2015 employment laws: important rulings made this year

The leading Israeli newspaper Globes, interviewed employment experts, including our Head of Employment Department in order to discuss the most influential rulings in this area.

Categories: Employment

Trends In The TMT Industry

The Technology, Media & Telecommunications area is changing. We are now seeing new products, new services and innovation at a faster rate than ever before. The Israeli government identifies TMT as one of the most robust areas of the Israeli economy today and it encourages multinational companies to develop their IP within Israel. The government provides tax benefits, funds and grants to companies who develop their IP in Israel, under domestic and international programs, agreements, treaties and collaborations.

Exemption from responsibility, indemnification and insurance of officers associations - is it possible and how?

Arrangements for exemption from responsibility, indemnification and insurance of officers associations (in the benefit of the public) have been gaining momentum recently, both by officers in these organizations seeking shelter under these arrangements, similar to officers in commercial companies, as well as from insurance companies that see the third sector as a potential market.  

Categories: NPO

Hungary- the standard VAT rate of 27% will be reduced in 2016 to 5% for the sale of newly constructed residences

Since the number of newly constructed apartments and houses dropped drastically in Hungary in recent years, the aim of the VAT amendment is to increase the number of residential properties available on the Hungarian market. Adv. Gal Oren, who has extensive experience in the Hungarian market, was interviewed by Calcalist.

Categories: Real Estate

Israeli private and public companies may submit documents to the Companies’ registrar in English

In an article published in The Lawyer and Lexology, Adv. Ariella Dreyfuss and Adv. Asaf Shalev explain that a new draft bill, published at the beginning of the month, proposes that Israeli private and public companies should be able to submit documents to the Israeli Companies Registrar in English. The aim of the bill is to ease the process for foreign parties interested in investing in Israeli business and participating in Israel’s high tech story.

Categories: Corporate | High Tech

Gambling via Mobile Device – Constraints and Opportunities

The online gambling industry generates billions of dollars annually and is one of the burgeoning industries on the internet today. The growth of this industry spurred online gambling operators to search for additional operating channels, besides PCs and laptops, such as applications customized for mobile phones and handheld devices that may be used on membership-based websites (such as online casinos).

Israeli Court eases TASE listing rules for foreign listed companies

The Economics Department of the Tel-Aviv – Jaffa District Court is continuing to issue precedent rulings, and this time, in relation to the interpretation of section 46.B. of the Securities Law, 5728 – 1968.

Discussions had been underway for some time between Mylan N.V., a foreign public company traded on the NASDAQ, and Perrigo Company Plc., a foreign company traded on the New York Stock Exchange and on the Tel-Aviv Stock Exchange, relating to Mylan’s potential acquisition of Perrigo’s shares. After these discussions failed to mature into a transaction, Mylan announced in the United States its firm intention of publishing a tender offer for Perrigo’s shares, despite the fact that Perrigo’s board of directors had rejected the offer (i.e., a hostile takeover).

 

Draft Bill – New Transparency Obligations on Israeli NGOs with Foreign Funding

A new Israeli government draft bill was published last week for public comments – “Disclosure Obligations of Recipients of Support from Foreign Political Entities Law (Increased Transparency by Recipients of Support, when the Majority of their Funding is from Donations from Foreign Political Entities).”

The objective of this draft bill is to impose increased transparency on NGOs (associations/NPOs and public-benefit companies) regarding their activities, when the majority of their funding is from donations from ‘Foreign Political Entities’, beyond the transparency that is imposed on all recipients of such donations.

“Green Licensing” Reform in Israel

Recently, the Israeli Ministry of Environmental Protection published a preliminary draft bill relating to the proposed Integrated Environmental Licensing Law, 5775-2015.

This preliminary draft bill, which is based on the European Union’s Industrial Emissions Directive 2010/75/EU, was disseminated as a result of the Israeli government’s decision in April 2015 to work towards improving environmental regulations and encouraging “green” growth by promoting an integrated environmental licensing law. This came in the wake of the Israeli government’s commitment as part of its OECD accession process, after a number of years of collaborative efforts between the Ministry of Environmental Protection and other government ministries and after consulting with numerous authorities in the business, public and third sectors.

The Rise of Employees’ Unionization and Consultation Obligation during Transactions

The Collective Agreements Law provides that the union must represent the majority of unionized employees to whom the collective bargaining agreement applies, and no less than one-third of the total employees to whom the agreement applies. The union must notify the employer of its claim to be recognised as a representing body and the employer may examine the signatures of employees joining the union.

Summations filed in the Tisch versus Yogev case

After nearly three years of litigation proceedings relating  to Edwin Tisch's claim against Ori Yogev, summations were submitted yesterday.  Tisch claims that Whitewater and Yogev made false representations and acted fraudulently, causing Tisch to invest millions in Whitewater Holdings. According to Tisch, Yogev intoduced the project as the "Checkpoint" of the water industry, and "it is designed to change water treatment in Israel and abroad".

Categories: Litigation

Israeli Supreme Court rules that Loan Agreements may require a Prospectus

Recently, the Supreme Court handed down a ruling that constitutes a precedent: loan agreements which an entrepreneur offered to public investors are tantamount to “securities,” and therefore, require the publication of a prospectus, pursuant to the provisions of the Securities Law.

 

 

What you need to know about employment contracts

Employee rights in Israel are regulated by a long list of laws, extension orders and collective bargaining agreements. The perception of labor law is that it is primarily protective of employees vis-à-vis employers, and indeed, a basic rule of law states that employee contracts cannot derogate from rights prescribed in laws, extension orders and collective bargaining agreements, but may only supplement them

New amendments to the Israeli report regulations

As part of the series of reliefs that the Israel Securities Authority is promoting in order to ease the regulatory burden applied to entities under its supervision, a number of amendments to the Securities Regulations (Periodic and Immediate Reports), 5730 – 1970  were promulgated in the Official Gazette recently.

 

Our Firm will lecture at the Upper Galilee Human Resources Managers Forum

On 11/18/15  our firm will lecture in a Human Resources Managers Forum at Caesarea.

The forum includes CEO’s and HR managers of leading companies and meets once a month. We will give a lecture on the importance of labor agreement.

Categories: Employment

EU Court invalidates Safe Harbor Arrangement – repercussions for Israel

Recently, an official announcement was issued on behalf of the Law, Information and Technology Authority of the Israeli Ministry of Justice ("ILITA"), as a result of the ruling of the European Union’s Court of Justice invalidating the Safe Harbor Arrangement governing transfers of personal information from Europe to the United States – at this stage, the transfer of personal information from Israel to organizations in the United States on the basis of that arrangement is prohibited.

New Securities Regulations – Reporting Negotiations and Delaying Reporting

As part of its endeavor to streamline public reporting and ease some of the regulatory burden imposed on publicly listed companies, the Israeli Securities Authority (ISA) this week introduced an amendment to the Securities Regulations governing periodic and immediate reports. The amendment deals with a number of issues, including reporting on agreement negotiations and the companies’ right to delay public reporting.

 

 

Barnea & Co. represents AFI group

We represent the AFI group in a transaction for the construction two office buildings in Romania. The matter value is 50 Million Euro

Categories: Real Estate

Barnea & Co. represented Bruker Nano

Barnea represented Bruker Nano, an American company, traded on Nasdaq, in its acquisition of Jordan Valley Semiconductors for $53m.

The acquisition uniquely positions Bruker to offer unmatched solutions for advanced problems in nanotechnology research and semiconductor metrology.

Adv. Simon Jaffa and Adv. Daniel Lorber represented the client.

Categories: Corporate | High Tech

Lexology Navigator - Employment & Labour

Categories: Employment

New ITA circular, Aug 2015

On August 16, 2015, the Israel Tax Authority published a new circular (number 8/2015), which is effective immediately. The circular presents the new material requisite tests and criteria for recognizing an organization as a ‘public institution’ pursuant to section 46 of the Israeli Income Tax Ordinance. Certification issued to an organization pursuant to section 46 of the Income Tax Ordinance confers a tax benefit, by way of tax credits to donors in respect of donations they grant to that organization, at a rate of 35% for an individual donor and 26.5% for a corporate donor (according to the corporate tax rate).

 

 

 

 

How the JOBS Act Changed the Rules of the IPO Game

A few weeks ago, a new law came into effect in the United States that made significant changes to how small companies can raise money. 

The Jumpstart Our Business Startups Act (better known by its nickname, the “JOBS Act”) aims to ease the process for startups to seek investments, with a potentially dramatic effect.

Now, two years after the JOBS Act became law, we can look back and see just what effect these changes have had on the process of taking startups through initial public offerings (IPOs), and how this affects Israeli startups.

Barnea & Co. represented Kibbutz Shefayim

Kibbutz Shefayim filed a request yesterday to the Tel Aviv District Court to declare Yehuda Doron, the former treasurer of Kibbutz Shefayim, as bankrupt, if he does not pay within one week the sum of NIS 14.6 million. This amount represents the majority of the money in respect of which Doron was convicted of theft. 

Categories: Kibbutz Sector | Litigation

Court ruling with a deterrent effect – imposing personal liability on directors of an Israeli non-profit organization (NPO)

In May 2015, the Jerusalem District Court issued a judgment imposing personal liability in light of lawful conduct of the affairs of an NPO, on the general manager and authorized signatory of the NPO, as well as on the estate of the general manager’s father, OBM (who had been the chairman of the NPO’s executive board). The Court adjudged them personally to pay the inclusive sum of approximately NIS 13 million.
At issue is an NPO which, according to its formal-registered objectives, was established for the purposes of assisting victims of drug-related crimes, of increasing the public’s awareness of the pervasiveness of drug abuse, of providing information on drug-related issues and of increasing the public’s awareness of drug-induced violence.

Already in 2011, the court had issued a liquidation order against this NPO, after the Registrar of Amutot (NPOs) had appointed an investigator to investigate the NPO and his report of severe findings had prompted the Registrar to file a motion with the court to liquidate the NPO. At that time, based on the investigator’s report, the court had ruled that it was clearly the court’s duty to liquidate the NPO for the good of the public and appointed a liquidator for the NPO’s assets pursuant to the liquidation order.

The investigator’s report on the NPO indeed contained severe findings: that the NPO’s institutions were dysfunctional and failed to supervise the activities of the NPO’s general manager, whose actions were contrary to the interests of the NPO and had nothing to do with fulfillment and promotion of the NPO’s objectives, while misleading the NPO’s donors and exploiting their goodwill and ingenuousness. Thus, the report found, inter alia, that the NPO had raised a substantial amount of donations from the public, but took no action to promote NPO’s objectives; in fact, the gist of the NPO’s activities amounted to recruiting donations for the purpose of paying salaries to the NPO’s employees (which itself constitutes a prohibited distribution).

The report also found that, in addition to the routine fund-raising setup, the NPO also kept a separate extensive fund-raising setup that was off the NPO’s books; that the funds collected through charity boxes (approximately 1,500 charity boxes dispersed at different places of business) and payment vouchers never reached the NPO, but rather, were unlawfully misappropriated by functionaries at the NPO and used to pay salaries. The report also found that cash payments were being made to employees without duly reporting them to the tax authorities.
In light of all of the above, and as a result of the liquidator’s motion, the court ruled that the NPO’s general manager and the estate of the NPO’s executive board chairman (the general manager’s father) shall each be adjudged to return approximately NIS 6.5 million to the NPO, and collectively, approximately NIS 13 million. The judgment also appointed the liquidator (who was appointed pursuant to the aforesaid liquidation order), as the receiver of the real-estate assets and land rights of that general manager and on all assets of the chairman’s estate for the purpose of realization of the judgment and at the sum of the adjudged debt. Pursuant to the provisions of the Israeli (Non-Profit Organization) (‘amutot’) Law, the proceeds to be received in the NPO’s liquidation account as a result of the realization of the aforesaid assets shall be transferred to other NPOs having similar objectives for use towards fulfilling the objectives for which the public’s donations had originally been raised.
This judgment constitutes an example of the imposition of personal liability on directors and officers of an NPO without requiring any lifting of the corporate veil. Pursuant to the provisions of the law, a person may be held personally liable and adjudged to pay obligations and debts of an NPO if the NPO was being fraudulently operated or if inappropriate use was being made of funds by those in charge, while breaching the duties of fiduciary and care that are imposed on them (pursuant to sections 373 and 374 of the Companies Ordinance, which apply to an NPO under liquidation by virtue of section 54 of the NPO (‘amutot’) Law).

Furthermore, this judgment shines a spotlight on the importance of an NPO to act in accordance with its registered objectives and fulfillment of those. According to the provisions of the law, an NPO must act in accordance with its formal-registered objectives and prohibited from performing actions that do not fall within the scope of its objectives. Moreover, an NPO must utilize its resources (funds, assets, goodwill, equipment etc.) solely for the purpose of promoting its objectives. If an NPO has received funds, whether as donations or as support for the purpose of promoting a particular objective, it must use those funds for the objective for which they were provided and not for any other objective (even if such other objective does fall within the scope of the NPO’s objectives). Furthermore, if the representation given to donors is that a particular use shall be made of funds raised for the NPO, those funds must be expended for that purpose and may not be accumulated or allocated for other uses (even if they do fall within the scope of the NPO’s objectives).

Activities by an NPO that are not in conformity with its stated objectives may lead to its liquidation, to the imposition of personal liability on directors, officers and functionaries of the NPO, and even, in particular instances, to the imposition of criminal sanctions.

New Requirements Increase Risks for Directors

Does the new summary report which was published by the  Israel Securities Authority on the subjects of dividend distributions and buy-backs of shares, place high barriers to the ability of boards of directors to pass future resolutions? 

Categories: Capital Markets

Employment of youths in the summer vacation

As an expert in Labor law, Marie Tsion was interviewed in the economic section of "Yedioth Ahronot" regarding the employment of youths in the summer vacation. Marie elaborated on the relevant requirements for an employer who decides to hire youths.

Categories: Employment

Barnea represents TDT Specialist SRL

Eli Reifman, former CEO of Emblaze, and managers at MCE Systems are being sued by a Romanian company,TDT Specialist SRL, for 63 NIS million. TDT is represented by Adv. Zohar Lande and Adv. Gal Livshits. 

Categories: Litigation

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As part of the coalition negotiations, the" HaBayit HaYehudi" party demands the amendment of the "Non-Profit Organizations" Law  as a condition of its entry to the government. Adv. Asaf Shalev, who specializes in advising non-Profit organizations, has written in an opinion piece which has been published in Maariv.

Categories: NPO

April 2015 News flash – labor laws

An amendment to the Minimum Wage Law was recently promulgated, which will be gradually applied with reference to four periods. The first period begins on April 1, 2015, when the minimum wage is to be updated to NIS 4,650 (gross). The first update must be made in the April 2015 wage, which is payable at the beginning of May 2015.

All employers in the economy, including employers who are not employing employees at minimum wage, must specify the minimum wage rate in all pay slips. As a result, pay slips must be revised accordingly.

Pursuant to the law, for the purpose of calculating compliance with the minimum wage, base wage/combined wage, cost of living increases and permanent allowances being paid to employees on account of their work must be taken into account.

The subsequent minimum wage updates shall be as follows:

Ÿ     On April 1, 2016, the wage shall be updated to the higher of NIS 4,650 or 47.5% of the average wage in the economy as it shall be on that date.
Ÿ     On July 1, 2016, the wage shall be updated to the higher of the wage during the second period or NIS 4,825.
Ÿ     On January 1, 2017, the minimum wage shall be updated to NIS 5,000.

If you need additional details or advice regarding specific circumstances, feel free to contact our Labor Law Department.

Election Day: Can the employer oblige you to work?

Election Day in Israel is considered a day off. The employer cannot oblige its employees to work without this day off - except for a series of public services established by the CEC. We were interviewed by Ynet regarding the rights of employees.

Categories: Employment

New Procedure for Work Visas for Foreign Experts

The Israel Immigration Authority recently published a new, experimental, streamlined procedure for issuance of work visas for foreign experts, allowing the holder to work in Israel for up to 30 days over a 12 month period.

Previously, multinational companies that wished to send professionals to Israel to work with their Israeli R&D centers or strategic partners for short periods of time were required to apply for and obtain a work permit (from the Ministry of Economy) and then a work visa at an Israeli consulate abroad, all before entering Israel.

Under the new procedure, application for a work permit for an expert employee will be expedited, with full processing completed within 6 days in most cases.  Once the work permit is granted, the expert may enter Israel as a tourist, provided that he or she reports to the Immigration Authority within two business days of arrival, where the tourist visa will be converted to a work visa.

This new process should lessen the burden on multinationals or non-Israeli acquirers that require their expert employees to supervise operations in Israel, and it allows these companies to send their experts to Israel on an urgent basis.

Importance of employment contracts - Marie Tsion's lecture at the Human Resources Managers Forum

Marie Tsion to participate in a Human Resources Managers Forum at the Emek Yezreel Academic College. Marie was lectured about the importance of employment contracts and the way it may influence the position of HR manager in the organization.

Categories: Employment

Amendment no. 14 to the Non-Profit Organizations Law

Amendment no. 14 to the Non-Profit Organizations (Amutot) Law, came into effect in February, 2015.
The purpose of the Amendment is to hone the rules of corporate governance that apply to amutot and includes provisions designed to strengthen the nature of the audit in amutot, increasing transparency and strengthening the oversight and investigation authorities of the Registrar of Amutot.

The Amendment sets out provisions for the following issues: mandatory appointment of an internal auditor for an Amutah; expansion of the authorities of the Audit Committee (or the Audit Body of an amutah, as the case may be); granting oversight authorities and certification of supervisors by the Registrar of Amutot; expansion of the oversight authorities of the Registrar of Amutot through the use of external inspectors; expansion of the oversight authorities of the Registrar of Amutot regarding independent investigation of an amutah (and without the appointment of an external investigator); and various general provisions in a number of areas related to the relationship between the Registrar of Amutot and the amutot, and between the amutot themselves.

One of the main changes in the Amendment relates to a new entity in an amutah - the internal auditor. An amutah with a turnover exceeding NIS 10 million (or exceeding a higher amount to be determined by the Minister of Justice) - must appoint an internal auditor (“Internal Auditor”) in addition to the existing internal auditing bodies that are stipulated in the Amutot Law (Audit Committee, or the Audit Body as the case may be, and the Auditing Accountant).

The Internal Auditor will report to the Audit Committee on all matters related to professional issues, and to the Executive Board of the amutah on hierarchical-organizational matters. The appointment of the Internal Auditor will be done by the Executive Board of the amutah with the approval of the Audit Committee, and in the event of a disagreement, the General Assembly will decide.

Responsibilities of the Internal Auditor include, inter alia: (a) submitting a proposal for the annual or periodic work plan for the approval of the Executive Board, after the Audit Committee has examined it, and the Executive Board will approve it, with the changes it sees fit; (b) conducting an internal audit, in addition to the aforementioned work plan, on matters that may arise for urgent examination as imposed upon him by the Executive Board or the Audit Committee; (c) submitting a report on the findings as part of the annual and/or periodic work plan - to the Executive Board, CEO and the Audit Committee of the amutah.

Amendment No. 14 also includes provisions which expand the authorities of the Audit Committee (or the Audit Body of an amutah, as applicable). Such expansion includes identifying and fixing problems in the amutah’s business administration, inter alia, by consulting with the amutah’s Internal Auditor or with its accountant, and to make proposals to the Executive Board regarding ways of correcting such problems.
Additionally, added to the authorities of the Audit Committee, is the authority to examine the internal auditing system, including the Internal Auditor’s work plan, the amutah’s accountant remuneration and also to make arrangements regarding the manner of handling complaints brought by amutah employees regarding flaws in the conduct of its business and regarding the protection that will be provided to employees who complain, as aforementioned. 

Dispute between Israeli company and Royal Jordanian Airlines erupts over package tours for Israeli Arabs to Saudi Arabia via Jordan

Milad Aviation Ltd., an Israeli company, is claiming that Royal Jordanian Airlines negotiated in bad faith for many years, delaying the conclusion of a written agreement, and then hijacked the whole venture for themselves. Milad Aviation Ltd, represented by Adv. Zohar Lande, threatens lawsuit of NIS 20 million against Royal Jordanian Airlines. For the full article, please click here
Categories: Litigation

Draft maritime zones bill to clear the water for Oil & Gas Exploration

The recent decision of the Antitrust Commissioner with regard to the existence of a natural gas monopoly illustrates all the more emphatically the absence of an orderly legislative framework to regulate all matters pertaining to oil and gas exploration and production in Israel.

Nevertheless, moves are being made to clarify the regulatory framework concerning off shore Oil & Gas. A few weeks beforethe Commissioner’s decision,  the government had submitted a draft bill to the knesset on the matter of Israel's maritime zones.

The draft bill is worded in a way that adopts the customary provisions of the international Convention of the Law of the Sea of 1982, even though the State of Israel is not one of its signatories.

The draft bill defines five maritime zones, including the exclusive economic zone of the State of Israel. Besides defining the boundaries of the exclusive economic zone, the draft bill also prescribes the State’s powers and authorities and the laws that shall apply to that zone.

The adoption of the draft bill by the knesset will create certainty and reduce the ambiguity surrounding all issues pertaining to oil and gas exploration, production, utilization and management in Israel’s economic waters. and should encourage foreign companies to consider entry into the Israeli market.

Marie Tsion will lecture at the Upper Galilee Human Resources Managers Forum

On  12 February 2015, Marie Tsion, head of employment law, will participate in the HR Managers Forum of the northern region. The forum includes CEO’s and HR managers of leading companies and meets once a month at the Upper Galilee Regional Council.

Categories: Employment

Whitewater Holdings must pay 127 000 NIS to its former Vice President, Aviad Caspi

The Magistrate's Court in Tel Aviv accepted the claim of "Mika Benroy", a company  owned by Mr. Aviad Caspi, a former business development vice president of Whitewater Holdings. Caspi is also the  son in law of businessman, Edwin (Benny) Tish. Caspi submitted the claim  against  Whitewater Holdings, of which Uri Yogev is the founder and former Chairman of its Board of Directors .

The Magistrate's Court decided that Whitewater Holdings must pay an amount of approximately 127 000 NIS to "Mika Benroy" (Caspi’s company) for services given to Whitewater Holdings, for which no consideration had been paid.

The suit was filed by Adv. Zohar Lande, Adv. Shai Sharvit and Adv. Itay Wigoda from Barnea 

Categories: Litigation

You’ve been on a job interview but are still waiting for an answer? The employer must now inform the job seeker

The new amendment to the Notice to Employee will require employers to give written responses to job applicants whether or not they have been hired. The new amendment will take effect at the end of January.

Today, hiring procedures can include a number of in-house interviews, assessment centers and more. Thus the employee recruitment process has become increasingly longer. Candidates often have to wait lengthy periods before receiving a reply from employers and sometimes do not get a reply at all.  Candidates are left with considerable uncertainty regarding the important issue of pursuing a career. The amendment is intended to address these issues.

 

Categories: Employment

Treatment of Electronic Waste

The Environment Treatment of Electrical and Electronic Equipment and Batteries Law came into effect recently, as well as the regulations promulgated thereunder. The Law and the regulations prescribe arrangements for the environmental treatment of electrical and electronic equipment, batteries and accumulators in Israel in order to encourage re-use of electrical and electronic equipment, batteries and accumulators and in order to mitigate the negative effects of such equipment and batteries and of the waste generated by them on the environment and on public health.

 

The Treatment of Electrical and Electronic Equipment and Batteries Law

The Treatment of Electrical and Electronic Equipment and Batteries Law came into effect recently. Asaf Shalev,head of Environmental Law at Barnea & Co explains the Law and its ramifications for suppliers, distributors and marketers.

Categories: Environmental Law

Barnea & Co. represented Israel Natural Gas Lines

The Real Estate department, headed by Ariel Nadler, represented Israel Natural Gas Lines in the petition filed against it by Kibbutz Regavim. The judge rejected the petition stating that she did not see a reason to interfere in the government’s decision. In her view, once the safety concerns had been cleared, the kibbutz should have withdrawn the petition, which it did not do, The kibbutz will have to bear petition costs of NIS 4,000,000. 

Categories: Infrastructure | Real Estate

Formation of a Governmental Committee to Review Mining Royalties is Not Grounds for Arbitration

The Jerusalem District Court recently issued its ruling in the matter of Dead Sea Works Ltd. vs. the State of Israel. The proceeding included a discussion of Dead Sea Works’ petition to activate the arbitration clause stipulated in its concession agreement with the State of Israel. The petition was filed after the State refused to appoint an arbitrator pursuant to the arbitration clause.

Dead Sea Works sought to refer to arbitration the very formation of the Sheshinski Committee, pleading that it constitutes a violation the State’s covenant not to raise the rate of royalties payable by the Dead Sea Works for its mining license. Indeed, the Sheshinski Committee was formed for the purpose of reviewing the State’s policy on royalties due in consideration for the use of Israel’s natural resources.

The District Court rejected Dead Sea Works’ petition. It ruled that the mere formation of the Sheshinski Committee does not give rise to a dispute according to the arbitration mechanism prescribed in the concession agreement.

The Court issued its ruling based on the specific language of the arbitration clause in the concession agreement; it is conceivable that Dead Sea Works might have been allowed to pursue its position through arbitration proceedings had the arbitration clauses been worded differently.

Court decision on temporary residence abroad

On 21 October 2014, the Haifa District Court handed down its decision in “Yael Zor v the Tax Assessor Haifa” concerning temporary residency abroad. The case relates to a senior employee of a multinational enterprise the shipping company, Zim, who worked in Hong Kong for a subsidiary of the group from January 2006 to August 2008. 

 

 

Time to Start-Up! Follow the Challenging Road

Barnea and The MIT Enterprise Forum of Israel is delighted to invite you to a unique seminar: Time to Start-Up! Follow the Challenging Road. The event will take place on 19th November 2014, 16:30 - 20:15 at the Tel Aviv University.

Categories: Employment | High Tech

Being followed at work: what is allowed and what's not?

The increased use of technology in the workplace has created new concerns for both employers and employees in the area of privacy. Do Employers have the right to monitor their employees? Read more.

Categories: Employment

Barnea & Co. is growing

The firm welcomes Adv. Ezra Katzen , a new partner in the technology department, Adv.  Daniel Lorber and Adv.  Mayer Winkler that will work in the firm’s commercial department.

Ms. Hana Gertler (Co-founder of Whitewater) will testify in the “Whitewater Holdings” trial

Further to the request of the Canadian businessman, Mr. Edwin (Benni) Tisch, businesswoman Hanna Gertler will testify in the Whitewater trial, in accordance with the decision of Justice Ruth Ronen, of the Economic Department of the District Court in Tel Aviv. Tisch claims that Whitewater and Yogev made false representations and acted fraudulently, causing Tisch to invest millions in Whitewater Holdings. Whitewater Holdings is in receivership and creditors are owed approximately NIS 19 million. To read more, please click here
Categories: Litigation

International Labor and Employment Law Committee

During the International Labor and Employment Law Committee Midyear Meeting in Tel Aviv, the Committee asked a panel of leading attorneys, which included Marie Tsion. The panel dealt with women in a global practice and the challenges they face. To read more, please click here

Categories: Employment

The publisher Israel Mizrahi is suing his former partner

The publisher Israel Mizrahi  is suing his former partner Lior Sharf in an amount of about  NIS 11 million, claiming  that he has been misled through cover-up and concealment" Mizrachi, represented by adv. Zohar Lande and Daphne Klein, from Barnea, claims that Mr. Sharf covered up and concealed financial information related to Agam Publishing, their former business partnership. 

Categories: Litigation

Barnea & Co. represented "IN SPI AIR"

The Tel Aviv District Court rejected yesterday (Tuesday) a claim of NIS 67 million that was filed by the Canadian businessman David Geller, against the LR Group and start-up "IN SPI AIR".

IN SPI AIR  was represented by adv. Zohar Lande and adv. Gal Lifshitz

Categories: Litigation

A public offer in Israel of securities of a foreign corporation is subject to the Israeli Securities Law – even if there is a foreign law and jurisdiction provision

The Tel Aviv District Court recently issued a decision clarifying that a public offer in Israel of securities of a foreign company is subject to the provisions of the Israel Securities Law, even where the investment agreement stipulates that it will be subject to a non-Israeli law and dispute resolution jurisdiction.
 
In the case at issue, a Cayman Island entity raised from a group of more than 100 Israeli investors about USD 10 million to be used for the construction of a hotel in Thailand. The investment agreement included a provision applying Thai laws and specifying Thailand as the exclusive dispute resolution venue.
 
Subsequently, certain of the investors filed a lawsuit claiming that the securities had been sold in violation of the Israeli Securities Law, which prescribes, inter alia, that “no person shall offer securities to the public other than pursuant to a prospectus, the publication of which has been authorized by the Israeli Securities Authority”.
 
The defendants, on their part, filed a motion to dismiss the lawsuit in limine and a motion to hold a hearing on the Thai jurisdiction stipulated in the agreement.
 
In its decision the court rejected the motion to dismiss the claim and ruled that the relevant provisions of the Israeli Securities Law are not discretionary, and that a foreign law and jurisdiction provision in an agreement is not legally binding if it relates to a dispute relating to laws designed to protect the public in Israel. 

For more information, please fell free to contact Michael Barnea, managing partner and head of Capital Markets & Securities department 

Mediation between Ori Yogev and Benny Tisch regarding “Whitewater Holdings” has failed

The Canadian businessman, Benny Tisch, has filed a claim against Ori Yogev, currently Director of the Government Companies Authority, in the amount of NIS 15 million.  Tisch claims that Yogev made false representations and acted fraudulently, causing Tisch to invest millions in Whitewater Holdings. Whitewater Holdings is in liquidation and creditors are owed NIS 19 million.

Categories: Litigation

The former shareholer in Vita will not be sued

The Tel Aviv court has overturned and a court order allowing service of the claim against a former shareholder in a company called "Vita" outside of the Israeli jurisdiction.

Categories: Litigation

Offering securities through an online platfor

There is a growing interest in raising funds online. This is owing to the fact that the Internet provides a wide exposure to diverse audiences. This creates an opportunity for small enterprises to be exposed to alternative and new financing options, that in the normal course would not be available to them. This, in turn, allows the enterprise to widen their circle of potential investors. 

Categories: Capital Markets

Claim in the amount of NIS 15,000,000 against Uri Yoggev

Claim in the amount of NIS 15,000,000 against Uri Yoggev: "He has provided false representations and has acted fraudulently". The claim was filed through Advocates Zohar Lande, Shay Sharvit and Itay Wigoda of Barnea Law Offices. To read more, please click here

Categories: Litigation

Barnea & Co. filed an urgent request for provisional foreclosure and a prohibition of disposition order against Gad Zeevi

Advocates Zohar Lande and Itay Wigoda of Barnea filed an urgent request for provisional foreclosure and a prohibition of disposition order against Gad Zeevi. The purpose of the request is to guarantee that Gad Zeevi will pay to Zeev Rom the amount awarded to Zeev Rom in recent litigation.

Categories: Litigation

The ICC Group was sued by the Administrator General

The ICC Group was sued by the Administrator General for 150 million NIS, who argued that the trustees acted in severe negligence while cancelling the loss of profits insurance. The group is represented by Advocates Zohar Lande, Shai Sharvit, Itay Wigoda and Levi Metchnik of Barnea 

Categories: Litigation