preface

BDO Israel
DOING BUSINESS IN ISRAEL
or substantial relationship with its business management.
Regulations published in 2000 concern compensation and
expense payments to an “Independent Director”. These
regulations classify companies according to different levels,
based on their capital, and they also determine the amount of
compensation and expense payments to which the
“Independent Director” is entitled.
♦ If all the directors are of the same gender, directors of the
opposite gender should be appointed as "Independent
Directors".
♦ Appoint a certified public accountant (CPA), responsible,
inter alia, for auditing the company’s annual financial
statements.
♦ Appoint an audit committee comprised of at least three
directors. All "Independent Directors" must be members of
the audit committee.
♦ Appoint an internal auditor.
♦ File annual and quarterly financial statements with the
Registrar of Companies, the TASE, and the Securities
Authority.
♦ Publish a prospectus in respect of any public offering.
♦ Report immediately on any major event.
♦ Report on any potential conflict of interests between the
company and its controlling stockholders.
♦ New regulations were published during 2000 concerning
proof of stock ownership for voting at the general meeting.
Furthermore, there are regulations for convening reporting
general meetings and meetings of stockholders in public
companies, negotiating mergers, acquisition offers, and
concessions in transactions with interested parties.
♦ New regulations were published in 2000, which were
updated over the years to include the GAAP rules adopted by
the Israeli legislation and regulations, to simplify the rigorous
approval requirements prescribed by the Companies Law
concerning transactions between a company and an interested
party. Various concessions were granted to public companies
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