|
Fines, against Companies Breaching the Securities Law, Enacted by ISA for the First Time; Total sum about– 390,000 NIS
תוכן דף The ISA expects that once this enforcement tool becomes customary it will turn into a major deterrence factor. The fines collected by the ISA are transferred to the Treasury The ISA has enacted a fine imposition system ("financial fine" in the language of the Law) vis-?-vis reporting companies, their principal shareholders and underwrites. This is the first time a fine is imposed, since the new Law came into effect, in October 2007, following the required period of preparation and notification of the market prior to enacting the abovementioned system. The ISA expects that once the aforesaid enforcement tool becomes customary it will turn into a major deterrence factor. The imposition of fines on a reporting company, its principal shareholders and its underwriter is intended to compel, all those, responsible for supplying updated information to the capital market to do so punctually and in accordance with the requirements of the Law. The aforesaid can be achieved by increasing the awareness of the abovementioned entities regarding their responsibility concerning the reporting requirements, both in terms of substance and punctually. The amended Law allows imposing sanctions for: a public offer made without a prospectus authorized for publication by the ISA, a sale to the public of that is not according to the prospectus authorized by the ISA, non-publication of an amended prospectus, late submission of immediate and financial reports and/or submission lacking complete information and/or not according to the provisions of the Law and its Regulations, non-presentation of data in financial statements, non-reporting regarding the trustee's end of tenure. As regards the issuers, the fine will be imposed for: non-compliance with the qualification requirements, breach of the conflicts of interest provisions and more. According to the procedure, approved by the ISA, a committee, comprised of the members of the plenum, has been created in order to discuss and impose the fines. Following the staff's decision to bring up a particular violation of the Law for discussion in the Fines Committee, a notice is sent to the relevant entity, regarding the intent to impose a fine. The notice includes details pertaining to the violation, according to the information available to the ISA at the time, sections of the Law relevant for the violation and the fine imposed by the ISA for the aforesaid violation. By doing so, the company or the underwriter, accordingly, is given the opportunity to present its explanation, regarding the violation, in writing. The claims raised by the defendant are examined by the ISA and it acts in accordance with the findings. If the findings point out to the fact that there is no justification for the annulment or reduction of the fine, the company is obligated to pay within the stipulated period of time, as well as to publish an immediate report regarding the fine. However, the company has a right to appeal the decision of the Fines Committee at the district court. Lately, the ISA had imposed fines on several companies and on one principal shareholder, for the violation of the Securities law. The total sum of the fines is 390,000 NIS. All companies were able to submit their explanations to the ISA. All those, on whom the fines were imposed, were notified and required to publish an immediate report on the issue. The fines collected by the ISA are transferred to the Treasury. Henceforth is the list of companies, on which the fines have been imposed: ISA decision to impose the fine 2.7.2008 | Sections of the Law that were breached | Description of the violation (sum of the imposed fine) | Name of the corporation (reporater/ underwriter/ principal shareholder) | Decided to impose a fine in the sum of 30,000 NIS; 15,000 for each violation | Section 36 of the Securities Law and Section 3(9) of the Transactions with Controlling Shareholders Regulations | The company published conflicts of interest report authorized by 2 external directors whose appointment wasn't valid at the time of aforesaid authorization. The company published a list of office holders that included 2 external directors whose appointment wasn't valid Imposed fine: 30,000 NIS 15,000 for each violation | B. Barashi Road's infrastructure Ltd (1987) | | Decided to impose a fine in the sum of 57,000 NIS, including additional fine for continuous violation | Section 37 of the Securities Law and Sections 33(a), 30(a) of the Immediate and Periodic Reports Regulations | Principal shareholder's belated reporting to the company, regarding a change in her holdings in the company. Imposed fine: 39,000 NIS – 3,00 for each violation Continuous violation – 18,480 NIS Total: 57,480 | Principal shareholder in "Pate Bophirima Ltd" | | Decided to impose a fine in the sum of 15,000 NIS, without imposing a fine for continuous violation | Section 36 of the securities Law, and Section 39A of the Immediate and Periodic Reports Regulations | Non-submission of financial reports, containing significant information required by Law. Imposed fine: 15,000 NIS Continuous violation – 78,600 NIS Total: 93,600 | Prizma ILN Ltd | | Decided to impose a fine in the sum of 24,000NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 16 days. Imposed fine: 15,000 NIS Continuous violation: 9,000 NIS Total: 24,000 NIS | Denli A.M. Finance Ltd | | Decided to impose a fine in the sum of 48,600 NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 15 days. Imposed fine: 30,000 NIS Continuous violation: 16,800 NIS Total: 46,800 NIS | Company for Development of Developer's Center Ltd | | Decided to impose a fine in the sum of 24,600 NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 52 days. Imposed fine: 15,000 NIS Continuous violation: 9,600 NIS Total: 24,600 NIS | Lito Group Ltd | | Decided to impose a fine in the sum of 24,600 NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 52 days. Imposed fine: 15,000 NIS Continuous violation: 9,600 NIS Total: 24,600 NIS | Lito Group Ltd | | Decided to impose a fine in the sum of 19,200 NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 8 days. Imposed fine: 15,000 NIS Continuous violation: 4,200 NIS Total: 19,200 NIS | Dorot Holdings Ltd | | Decided to impose a fine in the sum of 134,400 NIS including additional fine for continuous violation | Section 36 of the Securities Law, and Section 7 of the Immediate and Periodic Reports Regulations | Late in submitting periodic financial reports for 2007, by 4 days. Imposed fine: 120,000 NIS Continuous violation: 14,400 NIS Total: 134,400 NIS | 9. מטיס קפיטל בע"מ |
|
