{"id":8999,"date":"2017-10-20T09:02:01","date_gmt":"2017-10-20T09:02:01","guid":{"rendered":"https:\/\/temp.lawoffice.org.il\/?p=8999"},"modified":"2023-12-14T10:38:47","modified_gmt":"2023-12-14T08:38:47","slug":"merger-amutot-israeli-nonprofit-organizations","status":"publish","type":"post","link":"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/merger-amutot-israeli-nonprofit-organizations\/","title":{"rendered":"A Merger of Amutot and Israeli Nonprofit Organizations"},"content":{"rendered":"<p dir=\"ltr\">Israeli <em>Amutot <\/em>Law includes an amendment which allows for a merger of <em>amutot<\/em> (i.e., multiple nonprofit organizations; an <em>amutah <\/em>in singular and <em>amutot <\/em>in plural) and\/or public benefit corporations (<em>cheletz<\/em>) to combine their efforts and activities.\u00a0 This article addresses this amendment to the law for Israeli <em>amutot<\/em>.<\/p>\n<h4 dir=\"ltr\">This Series of Posts<\/h4>\n<p dir=\"ltr\">We are an Israeli law firm with experience in a variety of fields, including Israeli nonprofit law.\u00a0 This article is one in a series discussing what you need to know about nonprofits or charitable organizations in Israel.\u00a0 This <a href=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/category\/non-profit-organizations-en\/\" target=\"_blank\" rel=\"noopener\">series<\/a> provides information on various rules for legal management of nonprofit organizations in Israel in order to better help you administer your Israeli nonprofit organization.<\/p>\n<p dir=\"ltr\">For more information on the Israeli Corporations Authority which oversees Israeli nonprofit organizations, see the <a href=\"http:\/\/www.justice.gov.il\/Units\/RasutHataagidim\/Pages\/default.aspx\" target=\"_blank\" rel=\"noopener\">government website<\/a>.\u00a0 For more articles from an Israeli lawyer and legal advice for Israeli nonprofit organizations related to the topic of this article, see our articles about the <a href=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/israeli-corporations-authority-structure-israeli-nonprofit-law\/\" target=\"_blank\" rel=\"noopener\">Israeli Corporations Authority<\/a>, <a href=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/financial-management-record-keeping-israeli-ngo-amutah\/\" target=\"_blank\" rel=\"noopener\">record keeping<\/a> and <a href=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/conflicts-of-interest-family-relationships-israeli-non-profit-organizations\/\" target=\"_blank\" rel=\"noopener\">conflicts of interest<\/a>.<\/p>\n<h4 dir=\"ltr\">Background<\/h4>\n<p><img decoding=\"async\" class=\"wp-image-9000 size-thumbnail aligncenter\" src=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/wp-content\/uploads\/2017\/10\/merger-snip-150x150.jpg\" alt=\"merger of amutot\" width=\"150\" height=\"150\" \/><\/p>\n<p dir=\"ltr\">Israeli law for nonprofit organizations discusses ways for a few <em>amutot <\/em>or a combination of an <em>amutah<\/em>\/<em>amutot<\/em> and a public benefit corporation (<em>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<h4 dir=\"ltr\">Internal Approval of the Merger of Amutot<\/h4>\n<p dir=\"ltr\">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<p dir=\"ltr\">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<h4 dir=\"ltr\">External Approval of the Merger of Amutot<\/h4>\n<p dir=\"ltr\">The merger is subject to input from the Registrar of Endowments or Registrar of <em>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 <em>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<p dir=\"ltr\">As this is a complicated legal matter, it is important to employ professional legal counsel prior to moving toward a merger.<\/p>\n<h4 dir=\"ltr\">Contact Us<\/h4>\n<p dir=\"ltr\">If you are interested in a merger of <em>amutot<\/em>, namely\u00a0merging your Israeli nonprofit organization with another <em>amutah<\/em> or a public benefit company, and have questions about this matter, please contact us.<\/p>\n<p dir=\"ltr\">Advocate Joshua Pex specializes in Israeli nonprofit law and would be happy to discuss the needs of your nonprofit organization with you.<\/p>\n<p>[author_and_contact_info]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&hellip;<\/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":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Merger of Amutot and Israeli Nonprofit Organizations<\/title>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u05d9\u05d4\u05d5\u05e9\u05e2 \u05e4\u05e7\u05e1\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 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