The issue of officers' responsibility in general, and of
directors in particular, is one of the key issues addressed in
companies and securities laws in Israel. The subject has been
deliberated, analyzed and gradually expanded over the years and,
without doubt, onerous and extensive responsibility is imposed on
directors in the current legal environment.
Over the years, a clear trend has developed of legislators and
courts expanding the responsibilities of corporate directors, which developed due to
the abundance of legislation, regulatory bodies and activist court
rulings. Directors in Israel have fiduciary duties, a duty of care
and a duty of disclosure towards the corporation, but this is
merely the minimum entry requirement for the formerly coveted role.
Coupled with these obligations, we are seeing a substantial
expansion of directors' obligations relating to such issues as:
exploiting business opportunities, responsibility over the
company's reports, the
