Setting a legal precedent: our partners, Alex Hertman and Noam Zamir, successfully represented Discount Investment Corporation Ltd. in defending a motion seeking approval of a derivative action.
Within the framework of the motion, that was filed with the Tel Aviv-Yaffo District Court (Economic Division), a ruling was rendered, the implication of which will provide heightened certainty for companies, legal advisors and directors alike with regard to interpreting the profit test for distribution of dividends.
In his ruling, Deputy President Judge Khaled Kabub held that the previous ruling rendered by the Court on the subject was not designed to bring about a change to the customary and acceptable profit test.

To read the full article (in Hebrew), as published in Globes, click here >>