Lawyer Monthly - October 2021 Edition

OCT 2021 | WWW.LAWYER-MONTHLY.COM Often, directors are sure they need to act on behalf of whoever appointed them. Directors in Israel are appointed and serve on many occasions as part of a network of interests. Unfortunately, many directors are not aware of their great liability and immense legal exposure as directors. In a company that our firm served as legal counsel, an interested party transaction was discussed by the board. During the board meeting, I stated my opinion that a fairness option should be received for the transaction and its terms before being brought to the board’s approval. Most of the directors agreed with me, and the proposal was accepted. The director interested in the transaction, who had much influence at the company, was very angry with me and saw me as responsible for delaying the transaction. After time passed, he phoned me and apologised. He had read about a company that had approved a similar transaction without receiving such an opinion, and the directors were sued for tens of millions of dollars. Your firm represents many employers in labour disputes. How much has regulation changed in this field in the last few years? I believe that a significant proportion of the employers in the market have not yet internalised the enormous change made in Israel in this field. Over the past few years, we have seen a process of new and extensive legislation in labour law in Israel. Alongside rightful protection accorded to disempowered employee populations by the new laws, it is also evident that there is a trend of imposing an unreasonable and unjust burden on employers to the extent of “criminalisation” of a fundamental part of the labour laws. Today, before making any managerial decision regarding an employee, every employer must check if it is even legal. Furthermore, there are the labour court rulings on the topic of employees’ right to organize, which must not be hindered. All this brings us to the realisation that MY LEGAL LIFE - MOSHE KAHN this field has fundamentally changed from what it was just a few years ago, and employers today must consider their actions with much caution. How important is it to brainstorm with the client, in your opinion? It is very important to think together with the client, to understand what motivates them and their business considerations. However, when these conflict with the law, a lawyer must stand up to the client, even if he is an influential manager or businessman, and even if this may result in termination of representation. I have had such disagreement with clients. It is my experience that, in the long run, a client will appreciate a lawyer that has its back more than a lawyer that cuts corners. Does the management of family-owned businesses create unique problems? What is, in your opinion, the correct path for a family- owned business to follow? Working with family-owned businesses is my baby. The inherent challenge and difficulty in a family-owned business of achieving success while preserving the family was what attracted me to this this topic many years ago. During the past seven years I have served as the Academic Director and lecturer at the Business and Family studies program initiated by the Bar Ilan University. It is no easy task to be part of a family that owns a business, whether you work at the business or outside of it. The fear of disputes that may damage the business and family relations is ever-present, even when all seem well. In this regard, I would advise to always have a binding written agreement between family members to settles relations and serve as a safeguard against conflicts that may hurt the family and do damage to the business; the earlier the better. “ Today, before making any managerial decision regarding an employee, every employer must check if it is even legal. ” 25