Jouman Abbud

About Jouman Abbud

Third year Law & Accounting student at the IDC Herzliya. Dreams of becoming a leading lawyer and leaving a mark on the industry

What is an “owner loan”?

Owner loans are loans given to the company by shareholders/office holders. The terms of the loan usually are determined in a founder's agreement or owner loan's agreement. Owner loans unlike investments are always a long-term liability. These particular loans are flexible compared to other loans. For example, many shareholder's offer to [...]

By | 2016-11-04T16:56:03+00:00 October 15th, 2016|Legal Definitions|0 Comments

What are “preference shares”?

Companies can offer preference shares with different rights and any combination of features. Preference shares offer investors another layer of protection. For example, if a company have financial problems, preference shares have the priority to claim on the assets of the company. In addition, preference shares offer greater income security when [...]

By | 2016-11-04T16:56:04+00:00 October 15th, 2016|Legal Definitions|0 Comments

What is a “Preemptive Right”?

A preemptive right is granted to shareholders under agreements such as Share Purchase Agreement, Investment Agreement, and Shareholder's Agreement etc. This right allows shareholders to purchase additional shares in the company before offering the shares to third parties. A preemptive right prevents dilution. For example, two shareholders have equal parts in a company. [...]

By | 2016-11-04T16:56:07+00:00 October 15th, 2016|Legal Definitions|0 Comments

What is a “Buy Me Buy You” mechanism?

BMBY is a mechanism that separate shareholders in case of disagreements and deadlocks. Mechanisms such as BMBY can be prescribed in contracts between shareholders like founder's agreement and cooperation agreement etc. According to BMBY mechanism, one of the founders (A) can make an offer on his partner's (B) shares. Founder B [...]

By | 2016-11-04T16:56:07+00:00 October 15th, 2016|Legal Definitions|0 Comments

What is the “General Meeting”?

According to the Israel company law, a general meeting is "an annual meeting or an extraordinary meeting of shareholders". The annual general meeting is a mandatory for public companies. Article 57 of the Israel company law conferred exclusive powers on the general meeting, such as resolutions in respect of alterations in [...]

By | 2016-11-04T16:56:07+00:00 October 15th, 2016|Legal Definitions|0 Comments
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