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STARTED WORKING AT A START-UP AND WERE PROMISED SHARES? THEY AREN’T REALLY YOURS
February 2020
The Haifa Economic Court determined in a precedential ruling that employees who receive shares from a company in a track that enables them to postpone receiving a tax benefit until exercising them – do not have rights as shareholders, as long as the shares are in the hands of the company’s trustee ■ The trustee’s commitments are first and foremost to ensure that tax is paid.
Adv. Achai Gomeh (who was not involved in the case) said that, in its ruling, the court relied upon the explicit language of the Companies Law, in the matter of the status of the trustee as shareholder.
To read the full article in Hebrew click here.
