Corporate Law of Israel
Chapter for THE LAW OF ISRAEL (Christian Walter, Barak Medina, Lothar Scholz, and Heinz-Bernd Wabnitz, eds., Forthcoming)
27 Pages Posted: 17 Oct 2017
Date Written: October 10, 2017
This chapter provides a concise survey of Israeli corporate law. The chapter opens with a description of the law’s approach to corporate legal personality and foundational documents, and, next, to institutional organs and directors and officers. The main part analyzes the legal duties imposed on directors and officers, control persons, and regular shareholders. In addition to the familiar duties of loyalty and care, which roughly follow the standard common law pattern, Israeli law has some unique features in regards with those duties, as well as certain legal obligations owed by shareholders. Next, the chapter deals with the regulation of related party transactions. It closes with a review of corporate litigation by way of veil piercing and shareholder representative claims.
Keywords: Israel, company law, corporate governance, duty of loyalty, duty of care, business judgment rule, veil piercing, derivative action, controlling shareholders, directors and officers
JEL Classification: K22
Suggested Citation: Suggested Citation