Legal Update - Securities | February 2016
Foreign Companies Offering Securities to the Public in Israel
On February 17, 2016 (the “Effective Date”) a new Amendment to “Schedule Four” under the Israeli Securities Law 5728-1968 will come into effect (the “Amendment” and “Securities Law” accordingly). The Amendment adds new corporate governance matters and revises existing ones that apply under the Companies Law 5759-1999 and its Regulations (“Companies Law” and “Regulations” accordingly) to Foreign Companies, which were incorporated outside of Israel and offer shares or bonds to the public in Israel (“Foreign Companies” or “Company”). The Amendment does not aim to apply to Foreign Companies that offered securities to the Israeli public prior to the Effective Date which will continue to be subject to the former Schedule Four until such time as they offer securities to the Israeli public after the Effective Date. The main purpose of the Amendment is to avoid ‘regulatory gaps’ between the requirements that apply to Israeli companies and those that apply to Foreign Companies as a result of amendments made to the Companies Law over the past few years. Below is a brief overview describing the Amendment.
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