<\/p>\n

Israeli law for nonprofit organizations discusses ways for a few amutot <\/em>or a combination of an amutah<\/em>\/amutot<\/em> and a public benefit corporation (cheletz<\/em>) to merge for economic or other reasons. In order for this to happen, one of the corporations must be liquidated.\u00a0 Additionally, its assets and liabilities must then be absorbed by the other corporation.<\/p>\n

Internal Approval of the Merger of Amutot<\/h4>\n

The Israeli nonprofit organization\u2019s General Assembly, Executive Board or Board of Directors must consider whether they wish to approve the merger.\u00a0 They must consider the objectives of the organization being liquidated compared to the objectives of the organization that is absorbing the other one.\u00a0 They must also consider the assets and obligations of the corporation that will be liquidated and absorbed.\u00a0 As Israeli nonprofit organizations are funded by donors, in the event a particular donation has been designated for a specific purpose, the absorbing organization must attempt to fulfill the conditions for use of the funds once the merge is completed.<\/p>\n

In order for a merger to take place, the Board of Directors and the General Assembly must approve this merger by a 75% majority.\u00a0 (The only exception to the 75% majority is if the Israeli nonprofit organization\u2019s by-laws or company articles stipulate something different.)\u00a0 If the two merging organizations are related corporations, the Audit Committee of each of the two organizations must approve the merger.<\/p>\n

External Approval of the Merger of Amutot<\/h4>\n

The merger is subject to input from the Registrar of Endowments or Registrar of Amutot<\/em>.\u00a0 Then, for the merger to take place, the District Court must approve it.\u00a0 The District Court will take into consideration the input of the Registrar of Endowments or Registrar of Amutot <\/em>that may examine the interests of donors in the merger.\u00a0 These registrars will also raise relevant issues and legal obligations of each organization prior to the merger.\u00a0 Based on this information, among other things, the court will then rule on the legality of the merger.<\/p>\n

As this is a complicated legal matter, it is important to employ professional legal counsel prior to moving toward a merger.<\/p>\n

Contact Us<\/h4>\n

If you are interested in a merger of amutot<\/em>, namely\u00a0merging your Israeli nonprofit organization with another amutah<\/em> or a public benefit company, and have questions about this matter, please contact us.<\/p>\n

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

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Israeli Amutot Law includes an amendment which allows for a merger of amutot (i.e., multiple nonprofit organizations; an amutah in singular and amutot in plural) and\/or public benefit corporations (cheletz) to combine their efforts and activities.\u00a0 This article addresses this amendment to the law for Israeli amutot. This Series of Posts We are an Israeli…<\/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":[264,262,263],"class_list":["post-8999","post","type-post","status-publish","format-standard","hentry","category-non-profit-organizations-en","tag-amutot","tag-merger","tag-merger-of-amutot"],"acf":[],"yoast_head":"\n