Corporate Law of Israel

Chapter for THE LAW OF ISRAEL (Christian Walter, Barak Medina, Lothar Scholz, and Heinz-Bernd Wabnitz, eds., Forthcoming)

ECGI - Law Working Paper No. 372/2017

27 Pages Posted: 17 Oct 2017

See all articles by Itai Fiegenbaum

Itai Fiegenbaum

Tel Aviv University; Harvard Law School Program on Corporate Governance

Amir N. Licht

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law; European Corporate Governance Institute (ECGI)

Date Written: October 10, 2017

Abstract

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

Fiegenbaum, Itai and Licht, Amir N., Corporate Law of Israel (October 10, 2017). Chapter for THE LAW OF ISRAEL (Christian Walter, Barak Medina, Lothar Scholz, and Heinz-Bernd Wabnitz, eds., Forthcoming) ; ECGI - Law Working Paper No. 372/2017. Available at SSRN: https://ssrn.com/abstract=3050329

Itai Fiegenbaum

Tel Aviv University ( email )

Ramat Aviv
Tel Aviv 69978, IL
Israel

Harvard Law School Program on Corporate Governance ( email )

1575 Massachusetts Ave.
Cambridge, MA 02138
United States

Amir N. Licht (Contact Author)

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel
972-9-952-7332 (Phone)
952-9-9513323 (Fax)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
952-9-9513323 (Fax)

HOME PAGE: http:/www.ecgi.org

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