Court rules former Hapoalim execs will pay bank NIS 3.56m

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Yesterday, the Tel Aviv District Court docket gave authorized drive to the settlement reached by former Financial institution Hapoalim executives with shareholders in a spinoff motion arising from the affair by which the financial institution paid heavy penalties within the US for having assisted US residents in tax evasion. Beneath the settlement, six former senior managers of Financial institution Hapoalim, amongst them former CEO Zion Kenan and former chairperson Yaor Seroussi, will collectively pay NIS 3.56 million to the financial institution from their very own pockets. That is along with $135 million that their insurance coverage corporations can pay. The NIS 3.56 million shall be utilized to the financial institution’s social and neighborhood exercise.

Zion Kenan and Yair Seroussi credit: Eli Dassa

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Decide Magen Altuvia wrote within the resolution: “After weighing all of the info and the arguments of the perimeters, and the place of the Lawyer Common and the objector, I discover that with the modification to the settlement, there are grounds for giving it the drive of a courtroom ruling.” The quantity of the settlement will bear annual curiosity of 9.57% from February 1, 2023, and won’t be acknowledged as a donation for tax functions.

The petition for a spinoff motion was filed by Dr. Shulamit Sharon, a shareholder within the financial institution, eight years in the past. She argued that the banks’ officers had prompted it injury when the financial institution needed to pay a penalty of $900 million to the US authorities, after admitting that it had assisted US clients in evading US taxes. Financial institution Leumi and Mizrahi Tefahot Financial institution additionally paid penalties within the affair.

The Financial institution Hapoalim executives initially agreed to pay NIS 2.5 million, however the decide made approval of the settlement conditional on the quantity being raised to NIS 3.56 million.

Printed by Globes, Israel enterprise information – en.globes.co.il – on November 2, 2023.

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