<\/p>\n

While the Israeli Amutot<\/em> Law does not expressly discuss family relations or forbid family relations between the members of the three mandatory institutions of the amutah <\/em>— the General Assembly, the Executive Board and the Audit Committee — and the employees of the Israeli non-profit organization, Section 27 of the law goes into this further.\u00a0 Section 27 elaborates on the interests of the non-profit organization and the responsibility of the Executive Board to carry out the amutah\u2019s <\/em>interests, including managing employees in an objective manner.\u00a0 The board\u2019s objectivity could be influenced if family relationships are involved.<\/p>\n

Defining Family Relationships<\/h4>\n

According to Israeli law for non-profit organizations, family relationships or relatives include a sibling, parent, grandparent, children, grandchildren, great-grandchildren, a spouse\u2019s children or a spouse of any of the above.<\/p>\n

Employment and Contracts<\/h4>\n

As objectivity could be influenced due to family relations between board members or committee members and employees, this could pose a conflict of interest.\u00a0 As a result, Audit Committee and Audit Body members are not allowed to be employees of the non-profit organization.\u00a0 Executive Board members who have family relations with employees can be employed in some cases so long as no more than ten percent of employees are related to the board or committee members.<\/p>\n

Rules on Family Relations between Executive Board and Audit Committee Members<\/h4>\n

It is important to avoid conflicts of interest between the Executive Board and the Audit Committee.\u00a0 As a result, an Executive Board member cannot simultaneously be an Audit Committee member.\u00a0 Additionally, an Executive Board member\u2019s relative may not serve on the Audit Committee.\u00a0 For example, if an Executive Board has five members, two of them may be related, but not three, because they then constitute a majority of the board that are related.\u00a0 However, it is not permitted to have family relations (for example, spouses) who serve on both the Executive Board and Audit Committee, nor can there be family relations between an Audit Committee member and an employee.<\/p>\n

Other Conflicts of Interest in Israeli Non-Profit Organizations<\/h4>\n

If there is a situation where an amutah<\/em> member or one of its institution members may not be able to make a decision on behalf of the Israeli non-profit organization due to a conflict of interest, then this individual must not participate in the decision or give their opinion.<\/p>\n

If the Israeli non-profit organization is engaged in some sort of transaction with an entity somehow connected to the amutah<\/em>, then it must be very strict in the way it manages the transaction, even more so than if it were a transaction with an entity it was not connected with.<\/p>\n

Contact Us<\/h4>\n

If you have questions about family relations or conflicts of interest in Israeli non-profit organizations, please contact us.<\/p>\n

Advocate Joshua Pex specializes in Israeli non-profit law and would be happy to discuss the needs of your non-profit organization with you.<\/p>\n

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Israeli law has clear rules regarding employing family relations of board or committee members in order to ensure proper management and prevent conflicts of interest in Israeli non-profit organizations. This Series of Posts Our team of lawyers at our law firm has experience in a variety of fields, including Israeli non-profit law.\u00a0 This article is…<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[185],"tags":[196,194,267,205],"class_list":["post-8981","post","type-post","status-publish","format-standard","hentry","category-non-profit-organizations-en","tag-amuta","tag-amutah","tag-conflicts-of-interest","tag-nonprofit-organization"],"acf":[],"yoast_head":"\n