preface

34
BUSINESS STRUCTURE
with respect to the approval of specific transitions that are
more common and dynamic.
♦ In view of the global trend to establish the concept of
corporate social responsibility (CSR), since 2001 publicly
traded corporations are required to report on their social
contribution policy in the directorate statement.
♦ In light of the increasing importance attributed in the last
years to risks management, new regulations were published
in 2002 compelling companies to disclose information
regarding exposure to market risks, including quantitative
information. In addition, the Israeli Knesset (Parliament)
amended, at the end of 2006, the Regulations in accordance
with the "Second GALAI Committee" resolutions. The
Amendment obligates companies to file annual and periodic
reports integrating accounting regulations and Board
reporting disclosure requirements. This implies that corporate
reports will reflect the exposure of companies to market risks
and risk management. The said Amendment includes 2006
reports as well.
♦ In 2003, the Israel Securities Authority published new
guidelines requiring companies to publish information with
respect to the number of directors who possess accounting
and financial skills. Each company should assign a minimum
number of such directors, bearing in mind its size, operations,
etc., and disclose this number in its annual reports and
whether the current board of directors complies with it.
♦ Other new guidelines published in 2003 by the Israel
Securities Authority concern significant valuations.
Companies are required to attach to their financial reports
each valuation applied to determine the value of an asset,
liability, engagement, capital or activity considered to be of
significance to the company's business. Furthermore, there is
a requirement for disclosure regarding the work contracted to
the appraiser and the method and information forming the
basis of the valuation.
♦ In 2004 the Israel Securities Authority published new
amendments to the Securities Law, in accordance with the
Barneah Committee. Those new amendments are based
BDO Israel