September Edition 2022

49 Background For many years, most (practically almost all) of the publicly traded companies in Israel have been controlled by a single shareholder (or by a group of shareholders, acting in concert) – not unlike many other jurisdictions in the world (with the substantial exceptions of the US, Canada, Australia, and the UK)1. Therefore, for decades the Israeli legislator has been focused on agency costs in general2 andmore specifically on horizontal agency 1 See OECD Corporate Governance Factbook 2021, pp 28-29 https://www.oecd.org/ corporate/ OECD-Corporate-Governance-Factbook.pdf 2 See The Law for Amendment of the Companies Ordinance (Amendment No. 4) (Liability of Office Holders), 1991. Towards Better Corporate Governance of Publicly Traded Companies with no Controlling Shareholder(s) – The Current Situation in Israel and the Outstanding Bill By: Eitan Shmueli, Head of Capital Markets & Securities Department and Amir Zolty, partner in the Technology. Corporate. M&A Department and head of the High-Tech practice 1. Eitan Shmueli Partner, Head of Capital Markets & Securities Department Amir Zolty Partner in the Technology. Corporate. M&A Department and head of the HighTech practice

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