חוק החברות (תיקון מס' 27), התשע"ו-2016Companies Law (Amendment No. 27), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Companies Law (Amendment No. 27), 2016 establishes several relaxations in corporate governance under the Companies Law, 1999: 1. It is established that an audit committee may also serve as a compensation committee, if the committee's composition meets the composition requirements of the compensation committee. 2. It is established that a general meeting of a public company may approve the CEO serving as chairman of the board by a simple majority of shareholders who are not controlling shareholders or interested parties in the approval. It is further established that the Minister of Justice is authorized to establish in regulations that approval for such dual office-holding may be granted for periods exceeding three years, for types of companies to be determined. 3. It is clarified that when the company's securities, or part of them, are traded outside Israel, both external directors may be appointed from among persons who are not Israeli residents. It is further established that the Minister of Justice is authorized to determine additional types of companies in which an external director may be a non-Israeli resident. 4. It is established that in a bond company that becomes a public company, there will be no need for general meeting approval for the continued tenure of external directors. Such approval will be required if the appointment of the directors for an additional term is requested.

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