preface

4.2. TEL AVIV STOCK EXCHANGE
4.2.1. General
BDO Israel
DOING BUSINESS IN ISRAEL
Securities issued by public companies and government bonds are traded
on the Tel Aviv Stock Exchange (TASE). Approximately 613
companies are listed on the TASE.
Trading in securities and raising capital through public offerings are
regulated by the Securities Act under which the Securities Authority
was established, in order to protect investors’ interests.
The Securities Authority's principal tasks are:
♦ Authorizing the issuance of a prospectus.
♦ Checking financial reports and special transactions.
♦ Supervising the TASE.
♦ Investigating matters concerning the Securities Act.
As a rule, in order to issue securities to the public, the issuer is required
to issue a prospectus according to specific requirements.
Among other requirements, a public company is required to report on
certain significant matters as follows:
♦ Changes in the Memorandum and Articles of Incorporation (only
Articles of Incorporation for companies incorporated after February 1,
2000).
♦ Details of holders of 5 percent or more of the voting rights or shares
of the company, including any changes in such holdings.
♦ Any material agreement the company has entered into.
♦ Salaries of the company’s 5 highest paid officers and directors.
♦ Any benefits and transactions with holders of 5% or more of the
issued capital stock.
♦ Change of auditors.
♦ Changes in the capital stock.
♦ Composition of the board of directors.
♦ Conflict of interests between the company and the controlling
stockholders.
♦ Private placements.
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