The Tel Aviv District Court (Economic Department) dealt recently
with the question of whether a controlling shareholder of a public
company listed on the stock market indices, is prohibited from
carrying out share purchase transactions, if such transactions may
lead to delisting of the company's shares from the stock market
indices. This question arose in a motion which was considered and
granted by the Court, to approve an action as a class action filed
by the minority shareholders of Delek Energy Systems Ltd. against
its controlling shareholder and officers of the company.
In its decision, the Court reviewed relevant Supreme Court
decisions whereby, as a rule, it has been confirmed that every
individual is entitled to trade securities freely and as he wishes,
since this is a right deriving from the freedom of contract and his
proprietary right to his securities, adding that this right also
stems from recognition of the importance of maintaining a free and
efficient
