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Jerusalem, 21 December 1999
Finance Ministry to Submit Amendments to Investments Law
(Communicated by Finance Ministry Spokesman)
Finance Minister Avraham Shohat today (Tuesday) 21.12.99, submitted
to the Ministerial Committee on Legislation a draft proposal for an
amendment to Article 15 of the Securities Law regarding the offering
of stock options to employees.
According to the Finance Minister, the Law's current formulation has
caused an imbalance between Israeli companies trading solely abroad -
which offer stock options to their employees and must publish a
company prospectus in Israel in addition to their prospectuses abroad
- and foreign companies that make identical offers to their employees
in Israel but which do not have to issue such prospectuses.
The proposal differentiates between types of corporations offering
stock options to their employees in Israel. Instead of registering a
corporation by its country of incorporation, it will be registered
according to its place of registration of trade. A corporation
reporting in accordance with the Securities Law will be exempt from
issuing a prospectus, but must publish a description detailing the
issue and stocks being offered, based on its last period report. A
corporation that does not report in accordance with the Securities
Law will be exempt from issuing a prospectus under certain
conditions. This arrangement is intended to permit the issue of stock
options to employees which are not intended to raise capital but are
in the area of labor-relations.
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