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The New Class Actions Law

D&O Seminar

On 3^rd April 2011 Levitan, Sharon & Co. held their D&O Seminar at the Dan Hotel in Tel Aviv. Further detales.

Draft guidelines for insurance programmes

On 6th September 2011 the Israeli Commissioner of Insurance published draft guidelines for insurance programmes sold in Israel. The guidelines impose on insurers a wide duty of disclosure and clarity in drafting the wording of policies. Further detales.

AIDA Conference The annual conference of AIDA Israel took place on Thursday, 8 September 2011, at the Hilton Tel Aviv Hotel. The conference was organized Adv. Peggy Sharon and by Adv. Peter Gad Naschitz, both are members of the AIDA International Presidential Council. This year, for the first time, the conference was attended by the AIDA International Presidential Council members, including its president, Mr. Michael Gill of Australia. After competing with Greece, Turkey and Morocco to host the AIDA Conference in their respective countries, it was Adv. Peggy Sharon who convinced the Presidential Council to hold the conference in Israel. Over 130 attendees from South America, Australia, Japan, Turkey, Morocco, Greece, UK, Finland and Israel attended and enjoyed the conference.

Further detales.

Publications

Rachel Levitan has recently written the Israeli chapters in two insurance related Publication: "Insurance Portfolio Transfers: Move and Let Go", published by the International Bar Association and "Time bar in Insurance and Reinsurance" published by Clyde & Co.

Applicability of the Montreal Convention in Israel

A few months ago the Israeli Carriage by Air Law - 1980 was amended by applying the Montreal Convention to international and domestic carriage. The amendment will come into force on 20th March 2011, following a publication in the official gazette by the Foreign Ministry stating that the Montreal Convention will now apply in Israel. Further detales.

Consequential Losses Are they covered by Standard Product Liability Policy

In a recent judgement (June 2011) the Court of Appeals handed down its decision in C.A. 1228/08 Molram Hoist & Lifting Equipment & others v. Bituach Haklai Ltd. & others which dealt with the question relating to the cover of Consequential Losses afforded by the product liability policy. Further detales.

D&O

Approving filing of a Class Action: Implications for D&O Insurance

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By Adv. Addy Margalith

A recent Supreme Court judgment in Fatal v Cellcom (CM 8761/09) may have a dramatic effect on class action suits filed in Israel and, as a result, it affects liability policies such as directors' and officers' (D&O) liability policies, which provide coverage for such claims, including defence costs.

Prior Knowledge and Coverage for Defence Costs Under D&O Liability Insurance

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By Adv. Yael Navon

Very rarely do Israeli Courts address the interpretation of D&O Liability Insurance policies. Almost all insurance claims against D&O insurers are settled out of Court and therefore, there are very few Court judgements which refer to such policies. One of these judgements is C.A. (Haifa) 4600/07 Kenge Mansur v. Sahar Zion Insurance Co. Ltd. and the Carmel Local Council, which was handed down by the Haifa District Court on 28^th September 2008.

Changes in the Companies Law- 1999 Affecting D&Os

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By Adv. Addy Margalith

Two recent amendments to the Israeli Companies Law (1999) have an effect on D&O's liability, as well as on the basic requirements for their appointment as such.

Too Many Occurrences with Multiple Causes of Action Make the Claim Unsuitable for Class Action

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By Adv. Addy Margalith

The Haifa District Court determined that when a motion to approve filing of a class action against various companies and their D&Os included too many different and unrelated occurrences on the one hand and different allegations relating to each of those occurrences on the other hand, a Class Action is not the most efficient manner in which these disputes should be discussed.

Shareholders' Personal Claim for their “Secondary Loss”

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By Adv. Addy Margalith

The Israeli Supreme Court has determined on several occasions that, in principle, whenever the value of the company's shares decreases, the primary loss is caused to the company itself rather than to its shareholders. Hence, since the loss to the shareholders is a secondary indirect loss, they have no personal cause of action against those allegedly responsible to the decrease in the value of those shares. Only when a shareholder sustains a direct loss as a result of a D&O's wrongful act, he has a personal cause of action against that D&O.

Derivative Claims - New Developments

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By Adv. Yael Navon

Recently two Court rulings were handed down, in which the courts referred to several aspects of a derivative claim: Only in rare circumstances will a derivative claim be dismissed in limine; a Derivative Claim Cannot be Filed by a Former Shareholder.

Claims Against D&Os Upon Liquidation

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By Adv. Yael Navon

The Companies Ordinance grants the liquidator the authority to investigate the reasons which led to the liquidation, and to file personal claims against its directors and officers.

Criminal Liability of D&O’s

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By Adv. Yael Navon, and Adv. Addy Margalith

In two recent judgement handed down by the District Court of Tel Aviv the court discussed the implication of placing criminal liability on directors and officers and reached contradicting conclusions.

Personal Liability of D&Os in EPL Claims

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By Adv. Yael Navon

In cases in which a D&O of a company was personally involved in the breach of the company's duty towards its employees, the court may impose personal liability on the D&O, although he or she is not considered as the "employer".

Criminal Liability Arising from Consumer Protection Law Violations

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By Adv. Yael Navon

When Renata Kotwitz, an 85 year old woman, was visited by a person claiming to be a certified beautician representing a respectable firm, she agreed to buy a line of cosmetic products from her for several hundred US Dollars. After she applied one of the products she had just bought, her face began to swell and her skin turned red. She described the feeling as if her "face caught fire".

New Amendments to the Israeli Companies Law

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By Adv. Rachel Levitan and Adv. Moshe Abady

The Israeli Companies Law - 1999 (hereinafter: the Law), provides the framework according to which a company is permitted to indemnify its directors and officers.

The law also lists the cases in respect of which a company is permitted to purchase a D&O liability policy for its directors and officers.

These provisions are cognitive and cannot be stipulated against.

On 7th March 2005 the law was amended and various changes relating, inter alia, to insurance and indemnification of D&O’s came into force.

Another provision was amended in respect of piercing the corporate veil against a D&O of a company.

Directors and Officers Liability: Key Israeli Issues

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Statistics regarding D&O Liability in Israel, Main Aspects of the Companies Act Relevant to D&O Insurance, Piercing the Corporate Veil, Criminal Investigation & Proceedings Comparison between the Companies Act and the D&O Policy
Read more...

Directors, Officers and Managers Personal Liability in Israel

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On 19^th April 1999, a new Companies Law was enacted by the Israeli Parliament . This law entered into force on 1^st February 2000 and replaced the Companies Ordinance - 1983 (hereinafter: “the Ordinance”).

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