Governance and bylaw requirements vary depending on incorporation type.
Associations are required to submit the following the the Registrar:
PBCs must indicate their status by appending “Public Benefit Company” or “PBC” to the end of their names. PBCs share the same reporting requirements as associations, and depending on individual situations, may involve additional requirements as well.
PBFs have relatively more stringent requirements, as compared with private organizations. PBFs must grant at least 5 percent of its endowment (or 2 million shekels, whichever is less) on an annual basis. PBFs must have one independent director.
Similar to PBCs, PBFs must submit annual reports to the Registrar. In addition, a PBF is required to report on:
Private companies in Israel are required to appoint an external auditor (i.e., certified public accountant) at the shareholders’ general meeting. The auditor should approve the annual financial statements before the board of directors.
Public companies are governed by the Companies Law 1999 and Securities Law (1968), which covers corporate governance and securities regulation. Among other requirements, they are required to:
For a comprehensive list of reporting requirements, please consult a lawyer or accounting professional.
Moshe Kahn Advocates | Starting a business in Israel - the Legal Entities |
Getting the Deal Through | Corporate Governance: Israel |
International Center for Non-Profit Law | Companies Law 1999 |
Israel Securities Authority | Securities Law (1968) |
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