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Government Proposes Comprehensive Legislation to Regulate Non-Profit Companies

In July 2005, the Government introduced proposed legislation to amend the Companies Law [Proposed Companies Law (Amendment No. 4)(Companies for the Benefit of the Public), 5765 - 2005], to provide a comprehensive regime for the regulation of non-profit companies.

In Israel most non-profit activities are carried out by Amutot or Non-Profit Societies. These entities are subject to close scrutiny and oversight by the Registrar of Amutot.

However, in parallel to the regulated Amutot, Israeli law permitted non-profit organizations to be formed under the general companies law provided they complied with certain requirements regarding the disposition of assets upon dissolution.

However, such non-profit companies were not subject to any oversight such as was the case with Amutot.

The proposed legislation will subject non-profit companies to a battery of new governance and structural requirements that will provide for greater oversight over their activities through the Ministry of Justice.

For further details about the proposed legislation please contact us at info@fandz.com

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