Exhibit 99.2
ELLOMAY CAPITAL LTD.
18 Rothschild Boulevard, 1st Floor
Tel Aviv 6688121
Israel
____________________________________
NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS
To be held on December 29, 2022
6:00 p.m. Israel time
____________________________________
To Our Shareholders:
Notice is hereby given that the annual general meeting of shareholders, or the Meeting, of Ellomay Capital Ltd. (also referred to
hereinafter as “Ellomay” or the “Company”) will be held at the Company’s offices at 18 Rothschild Boulevard, 1st Floor, Tel Aviv 6688121, Israel on Thursday, December 29, 2022, at 6:00 p.m., Israel time, and thereafter as it may be
adjourned or postponed from time to time.
The agenda of the Meeting will be as follows:
|
1. |
Reelection of Shlomo Nehama, Ran Fridrich, Anita Leviant and Ehud Gil as directors;
|
|
2. |
Approval of purchase of directors and officers liability insurance policy;
|
|
3. |
Approval of terms of employment of Mr. Asaf Nehama, the son of Mr. Shlomo Nehama, the Company’s Chairman of the Board and a
controlling shareholder;
|
|
4. |
Reappointment of Somekh Chaikin, a member of KPMG International, as the independent auditors of the Company for the fiscal year ending December 31, 2022 and until the next annual general
meeting of the Company’s shareholders, and authorization of the Board of Directors to approve, following the approval of the Audit Committee, the remuneration of the independent auditors in accordance with the volume and nature of their
services; and
|
|
5. |
Receipt and consideration of the Auditors’ Report and the Financial Statements of the Company for the fiscal year ended December 31, 2021.
This item does not require a shareholder vote.
|
The Company’s Board of Directors recommends that you vote in favor of the foregoing proposals, all of which are more
fully described in the accompanying proxy statement, or the Proxy Statement.
Only shareholders of record at the close of business on November 28, 2022, or the Record Date, are entitled to notice of, and to vote at,
the Meeting or any adjournment(s) or postponement(s) thereof.
The Company expects that the Proxy Statement and the accompanying proxy card will be mailed to shareholders of record (as set forth above)
on or about November 30, 2022.
Each of the resolutions to be presented at the Meeting requires the affirmative vote of holders of at least a
majority of the ordinary shares voted in person or by proxy or via the Electronic System referenced below at the Meeting on the matter presented for passage. In addition, the approval of the proposals under Item 2 (as it relates to office holders
who are deemed controlling shareholders or relatives of controlling shareholders) and Item 3 is also required to comply with additional special “disinterested” voting requirements as set forth in the Proxy Statement. Item 5 does not require a
shareholder vote.
Joint holders of ordinary shares should note that, pursuant to Article 27.6 of the Company’s Second Amended and Restated Articles of
Association, the right to vote at the Meeting will be conferred exclusively upon the senior owner among the joint owners attending the Meeting, in person or by proxy or via the Electronic System, and for this purpose, seniority will be determined
by the order in which the names appear in our register of shareholders.
The Company knows of no other matters to be submitted at the Meeting other than as specified in this Notice of Annual General Meeting of
Shareholders. If any other business is properly brought before the Meeting, it is the intention of the persons named as proxies to vote in respect thereof in accordance with the recommendation of the Company’s Board of Directors.
Shareholders wishing to express their position on an agenda item for the Meeting may do so by submitting a written statement to the
Company’s offices at the above address by December 19, 2022. Any position statement received will be furnished to the SEC on Form 6-K, which will be available to the public on the SEC’s website at http://www.sec.gov and on the websites of the
Israel Securities Authority and Tel Aviv Stock Exchange at http://www.magna.isa.gov.il or http://maya.tase.co.il/, respectively.
Eligible shareholders may present proper proposals for inclusion in the Meeting by submitting their proposals to the Company no later than
November 30, 2022. Should changes be made to any proposal or to the agenda of the Meeting after the mailing of this Proxy Statement, the Company will communicate the changes to its shareholders through the publication of a press release, a copy of
which will be furnished to the SEC on Form 6-K and available to the public at the abovementioned websites.
If your ordinary shares are held through a member of the Tel Aviv Stock Exchange Clearing house, and you intend to vote your shares at the
Meeting in person or by proxy you must deliver to us, via messenger, registered mail, the electronic voting system of the Israel Securities Authority or email (hilai@ellomay.com), a confirmation of
ownership (ishur baalut) issued by the applicable bank or broker, confirming your ownership of our ordinary shares as of the Record Date, as required by the Israeli Companies Regulations (Proof of Ownership
of Shares for Voting at General Meeting), 5760-2000. You are entitled to receive confirmation of ownership in the branch of the exchange member or by mail to your address (in consideration of mailing fees only), if you so requested in advance for a
particular securities account. In the event you wish to vote your ordinary shares by means of a deed of vote, please deliver by any of the aforementioned means, along with the confirmation of ownership, the completed and executed second part of the
Hebrew form of the deed of vote, filed with the Israel Securities Authority and Tel Aviv Stock Exchange and available at the websites noted above, which must be received by the Company by 2:00 p.m., Israel time, on
December 29, 2022 (four hours prior to the Meeting), to be counted for the Meeting. You will receive from the exchange member who holds the shares on your behalf, by e-mail, for no charge, a link to the text of the deed of vote and to the
position notices, if any, unless you notified that you are not interested in receiving such links (provided that such notice was provided with respect to a particular securities account and prior to the Record Date). A shareholder is entitled to
contact the Company directly and receive the text of the Hebrew deed of vote and position notices, if any. Alternatively, shareholders who hold shares through members of TASE may vote electronically via the electronic voting system of the Israel
Securities Authority, up to six hours before the time fixed for the Meeting (i.e., noon (Israel time) on December 29, 2022). You should receive instructions about electronic voting from the TASE member through which you hold your shares.
You are cordially invited to attend the Meeting. Whether or not you plan to be present at the Meeting and
regardless of the number of ordinary shares you own, you are requested to complete and return the enclosed proxy, which is solicited by the Company’s Board of Directors, so that your vote may be recorded. The proxy must be received by the
Company’s transfer agent at least 48 hours prior to the appointed time of the Meeting or at the Company’s registered office in Israel at least four (4) hours prior to the appointed time of the Meeting to be counted for the Meeting. You
may revoke your appointment of proxy up to one hour prior to the Meeting so that you may vote your shares personally.
|
|
By Order of the Board of Directors,
/s/ Shlomo Nehama
Shlomo Nehama
Chairman of the Board of Directors
|
November 23, 2022
ELLOMAY CAPITAL LTD.
18 Rothschild Boulevard, 1st Floor
Tel Aviv 6688121
Israel
____________________________________
PROXY STATEMENT FOR AN ANNUAL GENERAL MEETING OF SHAREHOLDERS
To be held on December 29, 2022
6:00 p.m. Israel time
____________________________________
The annual general meeting of shareholders, or the Meeting, of Ellomay Capital Ltd. (also referred to hereinafter as “Ellomay,” the “Company,” “us,” “we” or “our”) will be held at our offices at 18 Rothschild Boulevard, 1st Floor, Tel Aviv 6688121, Israel on Thursday, December 29,
2022, at 6:00 p.m., Israel time, and thereafter as it may be adjourned or postponed from time to time.
SOLICITATION OF PROXIES
It is proposed that at the Meeting, resolutions be adopted as follows:
|
1. |
Reelection of Shlomo Nehama, Ran Fridrich, Anita Leviant and Ehud Gil as directors;
|
|
2. |
Approval of purchase of directors and officers liability insurance policy;
|
|
3. |
Approval of terms of employment of Mr. Asaf Nehama, the son of Mr. Shlomo Nehama, our Chairman of the Board and a controlling shareholder;
|
|
4. |
Reappointment of Somekh Chaikin, a member of KPMG International, as the independent auditors of the Company for the fiscal year ending December 31, 2022 and until the next annual general
meeting of the Company’s shareholders, and authorization of the Board of Directors to approve, following the approval of the Audit Committee, the remuneration of the independent auditors in accordance with the volume and nature of their
services; and
|
|
5. |
Receipt and consideration of the Auditors’ Report and the Financial Statements of the Company for the fiscal year ended December 31, 2021. This item does not require a shareholder vote
|
The proxy materials are being mailed to our shareholders as of November 28, 2022, or the Record Date, on or about November 30, 2022.
A form of proxy for use at the Meeting and a return envelope for the proxy are enclosed. Upon the receipt of a properly signed and dated
proxy in the form enclosed, which is received in time and not revoked prior to the Meeting, either of the proxies, with full power of substitution, will vote, as proxy, the ordinary shares represented thereby at the Meeting in accordance with the
instructions indicated on the proxy, or, if no direction is indicated, in accordance with the recommendation of our Board of Directors as set forth below. In order to be counted at the Meeting, your proxy must be
received either by our transfer agent by 6:00 p.m. (Israel time) on December 27, 2022 (forty-eight hours prior to the Meeting), or at our registered office in Israel by 2:00 p.m. (Israel time) on December 29, 2022 (four hours prior to the
Meeting).
The enclosed form of proxy is solicited by our Board of Directors for use at the Meeting and at any adjournments or postponements of the
Meeting. All expenses of this solicitation will be borne by the Company. In addition to the solicitation of proxies by mail, directors, officers, and employees of the Company, without receiving additional compensation, may solicit proxies by
telephone, in person, or by other means. Brokerage firms, nominees, fiduciaries, and other custodians have been requested to forward proxy solicitation materials to the beneficial owners of ordinary shares of the Company held of record by such
persons, and the Company will reimburse such brokerage, nominees, fiduciaries, and other custodians for reasonable out-of-pocket expenses incurred by them in connection therewith.
The proxy may be revoked at any time prior to its exercise by notice in writing of the shareholder to us, delivered to us up to one hour
prior to the Meeting and indicating that its/his/her proxy is revoked, or by timely submitting another proxy with a later date. If you hold your ordinary shares in “street name,” meaning in the name of a bank, broker or other record holder, you
must either direct the record holder of your ordinary shares on how to vote your ordinary shares or obtain a legal proxy from the record holder to vote such ordinary shares at the Meeting on behalf of the record holder as well as a statement from
such record holder that it did not vote such ordinary shares.
If your ordinary shares are held through a member of the Tel Aviv Stock Exchange Clearinghouse, and you intend to vote your shares at the
Meeting in person or by proxy you must deliver to us, via messenger, registered mail, the electronic voting system of the Israel Securities Authority or email (hilai@ellomay.com), a confirmation of
ownership (ishur baalut) issued by the applicable bank or broker, confirming your ownership of our ordinary shares as of the Record Date, as required by the Israeli Companies Regulations (Proof of Ownership
of Shares for Voting at General Meeting), 5760-2000. You are entitled to receive confirmation of ownership in the branch of the exchange member or by mail to your address (in consideration of mailing fees only), if you so requested in advance for a
particular securities account. In the event you wish to vote your ordinary shares by means of a deed of vote, please deliver by any of the aforementioned means, along with the confirmation of ownership, the completed and executed second part of the
Hebrew form of the deed of vote, filed with the Israel Securities Authority and the Tel Aviv Stock Exchange and available at the websites noted in the notice of the Meeting, which must be received by us by 2:00
p.m., Israel time, on December 29, 2022 (four hours prior to the Meeting), to be counted for the Meeting. You will receive from the exchange member who holds the shares on your behalf, by e-mail, for no charge, a link to the text of the
deed of vote and to the position notices, if any, unless you notified that you are not interested in receiving such links (provided that such notice was provided with respect to a particular securities account and prior to the Record Date).
Alternatively, shareholders who hold shares through members of TASE may vote electronically via the electronic voting system, or the Electronic System, of the Israel Securities Authority, or the ISA, up to six hours before the time fixed for the
Meeting (i.e., noon (Israel time) on December 29, 2022). You should receive instructions about electronic voting from the TASE member through which you hold your shares.
RECORD DATE; QUORUM
Only shareholders of record at the close of business on November 28, 2022 are entitled to notice of, and to vote at, the Meeting or any
adjournment(s) or postponement(s) thereof. As of November 22, 2022, we had 12,852,585 issued and outstanding ordinary shares (this number does not include 258,046 ordinary shares all of which were repurchased by us, that were held by us at that
date by us as treasury shares under Israeli law). Each ordinary share, other than ordinary shares held by us as treasury shares, is entitled to be counted for purposes of a quorum and to one vote on each matter to be voted on at the Meeting. Our
Second Amended and Restated Articles of Association, or the Articles, do not provide for cumulative voting for the election of directors or for any other purpose.
The presence at the Meeting, in person or by proxy or via the Electronic System, of two or more shareholders holding more than 25% of the
voting rights of the Company, will constitute a quorum. All ordinary shares represented in person or by proxy or via the Electronic System (including broker non-votes and shares that abstain or do not vote with respect to one or more of the matters
to be voted upon) will be counted for purposes of determining whether a quorum exists. If within half an hour from the time appointed for the Meeting a quorum is not present, the meeting shall stand adjourned on the same day, in the next week, at
the same time and place and means of communications. The requisite quorum at an adjourned meeting shall be any two or more members, present in person or by proxy or via the Electronic System at the Meeting.
VOTING RIGHTS; REQUIRED VOTES
The votes of all shareholders voting on a proposal are counted. Abstentions and broker non-votes will not be treated as either a vote “for”
or “against” a proposal. “Broker non-votes” are shares held by brokers or other nominees which are present in person or represented by proxy, but which are not voted on a particular matter because instructions have not been received from the
beneficial owner of the shares. Brokers and other nominees have discretionary voting authority under the applicable rules of the New York Stock Exchange to vote on “routine” matters. Please note that the uncontested election of directors is not
considered a “routine” matter under such rules. This means that if a brokerage firm holds your shares on your behalf, those shares will not be voted in the election of directors, or with respect to the other non-routine matters on the agenda of the
Meeting, unless you provide voting instructions to your brokerage firm or obtain a proxy from your brokerage firm and vote the shares yourself, in person or by proxy.
Each of the resolutions to be presented at the Meeting requires the affirmative vote of holders of at least a
majority of the ordinary shares voted in person or by proxy or via the Electronic System at the Meeting on the matter presented for passage. In addition, the approval of the proposals under Item 2 (as it relates to office holders who are deemed
controlling shareholders or relatives of controlling shareholders) and Item 3 is also required to comply with additional special “disinterested” voting requirements as set forth in the Proxy Statement. Item 5 does not require a shareholder vote.
TERMS OF SERVICE AND EMPLOYMENT OF EXECUTIVE OFFICERS AND DIRECTORS
For information concerning the terms of service and employment of our five most highly compensated office holders during or with respect to
the year ended December 31, 2021 see “Item 6.B: Directors, Senior Management and Employees – Compensation” in our Annual Report on Form 20-F for the year ended December 31, 2021, filed with the Securities and Exchange Commission, or the SEC, on
March 31, 2022, or the 2021 Annual Report. An “office holder” is defined under the Israeli Companies Law, 1999, or, as amended from time to time, the Companies Law, as a general manager, chief business manager, vice general manager, any other
person assuming the responsibilities of any of the foregoing positions without regard to such person’s title, and a director, or manager directly subordinate to the general manager.
PRINCIPAL SHAREHOLDERS
The following table sets forth information regarding the beneficial ownership of our ordinary shares as of November 22, 2022 by each person
known by us to be the beneficial owner of 5.0% or more of our ordinary shares. Each of our shareholders has identical voting rights with respect to its shares. All of the information with respect to beneficial ownership of the ordinary shares is
given to the best of our knowledge based on public filings by the shareholders and on information provided by them.
To our knowledge, except as otherwise indicated in the footnotes to this table, each shareholder in the table has sole voting and
investment power for the ordinary shares shown as beneficially owned by them.
| |
|
Ordinary Shares
Beneficially Owned(1)
|
|
|
Percentage of Ordinary Shares Beneficially Owned
|
|
| |
|
|
|
|
|
|
|
Shlomo Nehama (2)(5)
|
|
|
3,588,577
|
|
|
|
27.9
|
%
|
|
Kanir Joint Investments (2005) Limited Partnership (3)(4)(5)
|
|
|
2,605,845
|
|
|
|
20.3
|
%
|
|
Yelin Lapidot Holdings Management Ltd.(6)
|
|
|
1,735,076
|
|
|
|
13.5
|
%
|
|
Clal Insurance Enterprises Holdings Ltd.(7)
|
|
|
1,309,752
|
|
|
|
10.2
|
%
|
___________________________
| (1) |
As used in this table, “beneficial ownership” means the sole or shared power to vote or direct the voting or to dispose or direct the disposition of any security as determined pursuant to
Rule 13d-3 promulgated under the U.S. Securities Exchange Act of 1934, as amended. For purposes of this table, a person is deemed to be the beneficial owner of securities that can be acquired within 60 days from November 22, 2022 through
the exercise of any option or warrant. Ordinary shares subject to options or warrants that are currently exercisable or exercisable within 60 days are deemed outstanding for computing the ownership percentage of the person holding such
options or warrants, but are not deemed outstanding for computing the ownership percentage of any other person. The amounts and percentages are based on a total of 12,852,585 ordinary shares outstanding as of November 22, 2022. This number
of outstanding ordinary shares does not include a total of 258,046 ordinary shares held at that date as treasury shares under Israeli law, all of which were repurchased by us. For so long as such treasury shares are owned by us they have no
rights and, accordingly, are neither eligible to participate in or receive any future dividends which may be paid to our shareholders nor are they entitled to participate in, be voted at or be counted as part of the quorum for, any meetings
of our shareholders.
|
| (2) |
The 3,588,577 ordinary shares beneficially owned by Mr. Nehama consist of: (i) 3,123,604 ordinary shares held by S. Nechama Investments (2008) Ltd., or Nechama Investments, which constitute
approximately 24.3% of our outstanding ordinary shares and (ii) 464,973 ordinary shares and held directly by Mr. Nehama, which constitute approximately 3.6% of our outstanding ordinary shares. Mr. Nehama, as the sole officer, director and
shareholder of Nechama Investments, may be deemed to indirectly beneficially own any ordinary shares owned by Nechama Investments, which constitute (together with his shares) approximately 27.9% of our outstanding ordinary shares.
|
| (3) |
Kanir Joint Investments (2005) Limited Partnership, or Kanir, is an Israeli limited partnership. Kanir Investments Ltd., or Kanir Ltd., in its capacity as the general partner of Kanir, has
the voting and dispositive power over the ordinary shares directly beneficially owned by Kanir. As a result, Kanir Ltd. may be deemed to indirectly beneficially own the ordinary shares beneficially owned by Kanir. Mr. Ran Fridrich, who is a
member of our Board of Directors and our Chief Executive Officer and Ms. Anat Raphael, the sister of Mr. Ehud Gil who is a member of our Board of Directors, are the sole directors of Kanir Ltd. As a result, Mr. Fridrich and Ms. Raphael may
be deemed to indirectly beneficially own the ordinary shares beneficially owned by Kanir. In addition, the estate of Mr. Raphael, who passed away in December 2020, is the majority shareholder of Kanir Ltd. and beneficially owns 254,524
ordinary shares, which constitute approximately 2% of our outstanding shares and which constitute, together with Kanir’s holdings, approximately 22.3% of our outstanding ordinary shares. Each of Kanir Ltd., Mr. Fridrich and Ms. Raphael
disclaims beneficial ownership of such ordinary shares except to the extent of their respective pecuniary interest therein, if any.
|
| (4) |
By virtue of the 2008 Shareholders Agreement, Mr. Nehama, Nechama Investments, Kanir, Kanir Ltd., Mr. Fridrich and Ms. Raphael may be deemed to be members of a group that holds shared voting
power with respect to 5,729,449 ordinary shares, which constitute approximately 44.6% of our outstanding ordinary shares, and holds shared dispositive power with respect to 5,232,201 ordinary shares, which constitute 40.7% of our
outstanding ordinary shares. Accordingly, taking into account the shares directly held by Mr. Nehama, he may be deemed to beneficially own approximately 48.2% of our outstanding ordinary shares and, taking into account the shares directly
held by the estate of Mr. Raphael, Ms. Raphael may be deemed to beneficially own approximately 46.6% of our outstanding ordinary shares. Each of Mr. Nehama and Nechama Investments disclaims beneficial ownership of the ordinary shares
beneficially owned by Kanir. Each of Kanir, Kanir Ltd., Mr. Fridrich and Ms. Raphael disclaims beneficial ownership of the ordinary shares beneficially owned by Nechama Investments. A copy of the 2008 Shareholders Agreement was filed with
the Securities and Exchange Commission, or the SEC, on March 31, 2008 as Exhibit 14 to an amendment to a Schedule 13D and is not incorporated by reference herein.
|
| (5) |
The information included in this table concerning the beneficial ownership of Nechama Investments, Kanir, Kanir Ltd., Messrs. Nehama and Fridrich and Ms. Raphael is
based on a Schedule 13D/A submitted on October 13, 2020 and on information provided by the shareholders.
|
| (6) |
Based on a Schedule 13G/A submitted on February 17, 2022 by Mr. Dov Yelin, Mr. Yair Lapidot, Yelin Lapidot Holdings Management Ltd., or Yelin Lapidot, and Yelin Lapidot Mutual Funds
Management Ltd., or Yelin Lapidot Mutual. According to the Schedule 13G/A: (i) the securities reported therein are beneficially owned as follows: (a) 1,162,076 ordinary shares, which constitute approximately 9% of our outstanding ordinary
shares, by mutual funds managed by Yelin Lapidot Mutual and (b) 573,000 ordinary shares, which constitute approximately 4.5% of our outstanding ordinary shares, by provident funds managed by Yelin Lapidot Provident Fund Management Ltd., or
Yelin Lapidot Provident, (ii) both Yelin Lapidot Mutual and Yelin Lapidot Provident are wholly-owned subsidiaries of Yelin Lapidot and operate under independent management and make their own independent voting and investment decisions, and
(iii) Messrs. Yelin and Lapidot each own 24.38% of the share capital and 25.004% of the voting rights of Yelin Lapidot, and are responsible for the day-to-day management of Yelin Lapidot. Pursuant to the Schedule 13G/A, any economic
interest or beneficial ownership in any of the securities covered by the Schedule 13G/A is held for the benefit of the members of the provident funds or mutual funds, as the case may be, and each of Messrs. Yelin and Lapidot, Yelin Lapidot
and wholly-owned subsidiaries of Yelin Lapidot, disclaims beneficial ownership of any such securities.
|
| (7) |
Based on a Schedule 13G/A submitted on February 10, 2022 by Clal Insurance Enterprises Holdings Ltd., or Clal. Based on the Schedule 13G/A, of the 1,309,752 ordinary shares reported as
beneficially owned by Clal: (i) 118,390 ordinary shares, including 56,111 ordinary shares issuance upon the exercise of warrants that are exercisable within 60 days, are beneficially held for Clal’s own account and (ii) 1,191,362 ordinary
shares are held for members of the public through, among others, provident funds and/or pension funds and/or insurance policies, which are managed by subsidiaries of Clal, which subsidiaries operate under independent management and make
independent voting and investment decisions. Consequently, Clal notes in the Schedule 13G/A that the Schedule 13G/A will not constitute an admission that it is the beneficial owner of more than 118,390 ordinary shares.
|
MATTERS SUBMITTED TO SHAREHOLDERS
ITEM 1
REELECTION OF DIRECTORS
Background
At the Meeting, the shareholders will elect directors to serve on our Board of Directors. Our Articles provide that, unless otherwise
prescribed by a resolution adopted at a meeting of our shareholders, the Board shall consist of not less than four (4) nor more than eight (8) directors (including the external directors appointed as required under the Companies Law). The directors
(other than the external directors) are elected annually at our annual general meeting of shareholders and remain in office until the next annual general meeting, unless a director has previously resigned, vacated his/her office, or was removed in
accordance with our Articles. Our Board of Directors may elect additional directors to the Board of Directors.
Our Board of Directors is currently composed of the following six directors: Shlomo Nehama, Ran Fridrich, Anita Leviant, Ehud Gil, Dr.
Michael J. Anghel and Daniel Vaknin. Shlomo Nehama, Ran Fridrich, Anita Leviant and Ehud Gil are standing for reelection. The current service terms of Dr. Michael J. Anghel and Daniel Vaknin, our external directors, expire in January 2025 and
December 2023, respectively.
We are unaware of any reason why any of the nominees, if elected, should be unable to serve as a member of our Board of Directors. All
nominees listed below have advised the Board of Directors that they intend to serve as members of the Board of Directors if elected.
As a controlled company, within the meaning set forth in the NYSE American Company Guide, we are exempt from the requirement that a
majority of a company’s board of directors qualify as independent directors within the meaning set forth in the NYSE American Company Guide and from the NYSE American Company Guide requirement regarding the process for the nomination of directors;
instead, we follow Israeli law and practice in connection with board composition and nominations.
Pursuant to the requirements of Section 224B(a) of the Companies Law, each of the director nominees provided us with a declaration prior to
the publication of the notice of annual general meeting of shareholders. These declarations are available for review at our offices, at the address set forth above, during regular business hours.
The following information is supplied with respect to each person nominated and recommended to be elected by our Board of Directors and is
based upon our records and information furnished to the Board of Directors by the nominees.
The nominees for directors are:
|
Name
|
Age
|
Position with the Company
|
|
Shlomo Nehama
|
67
|
Chairman of the Board
|
|
Ran Fridrich
|
69
|
Director and Chief Executive Officer
|
|
Anita Leviant(1)
|
68
|
Director
|
|
Ehud Gil
|
48
|
Director
|
__________________________
| (1) |
Member of the Company’s Audit Committee and Compensation Committee.
|
Shlomo Nehama has served as a director and Chairman of the Board of Ellomay
since March 2008. From 1998 to 2007, Mr. Nehama served as the Chairman of the Board of Bank Hapoalim B.M., one of the largest Israeli banks. In 1997, together with the late Ted Arison, he organized a group of American and Israeli investors who
purchased Bank Hapoalim from the State of Israel. From 1992 to 2006, Mr. Nehama served as the Chief Executive Officer of Arison Investments. From 1982 to 1992, Mr. Nehama was a partner and joint managing director of Eshed Engineers, a management
consulting firm. He also serves as a director in several philanthropic academic institutions, on a voluntary basis. Mr. Nehama is a graduate of the Technion - Institute of Technology in Haifa, Israel, where he earned a degree in Industrial
Management and Engineering. Mr. Nehama received an honorary doctorate from the Technion for his contribution to the strengthening of the Israeli economy.
Ran Fridrich has served as a director of Ellomay since March 2008, as our
interim chief executive officer since January 2009, and as our chief executive officer since December 2009. Mr. Fridrich is the co-founder and executive director of Oristan, Investment Manager, an investment manager of CDO Equity and Mezzanine
Funds and a Distress Fund, established in June 2004. In January 2001 Mr. Fridrich founded the Proprietary Investment Advisory, an entity focused on fixed income securities, CDO investments and credit default swap transactions, and served as its
investment advisor through January 2004. Prior to that, Mr. Fridrich served as the chief executive officer of two packaging and printing Israeli companies, Lito Ziv, a public company, from 1999 until 2001 and Mirkam Packaging Ltd. from 1983 until
1999. Mr. Fridrich also serves as a director of Cargal Ltd. since September 2002 and since 2007 as a director in Plastosac. Mr. Fridrich is a graduate of the Senior Executive Program of Tel Aviv University.
Anita Leviant has served as a director of Ellomay since March 2008. Ms. Leviant
heads LA Global Consulting, a practice specializing in representing and consulting global oriented companies in Cross Border and financial transactions and investment, banking and Capital Markets. LAGC represents and consults investors and
corporations on business and regulatory issues, in Fintech, Cyber and sustainable investments. LAGC provides soft lending for overseas business in Israel and in the UK. For a period of twenty
years, Ms. Leviant held several senior positions with Hapoalim Banking group including EVP Deputy Head of Hapoalim Europe and Global Private Banking and EVP General Global Counsel of the Group, and served as a director in the overseas
subsidiaries. Prior to that, Ms. Leviant was an associate in GAFNI & CO. Law Offices in Tel Aviv where she specialized in Liquidation, Receivership and Commercial Law and was also a Research Assistant to the Law School Dean in the Tel Aviv
University specialized in Private International Law. Ms. Leviant holds a LL.B degree from Tel Aviv University Law School and is a member of both the Israeli and the New York State Bars. Ms. Leviant currently also serves as President of the
Israel-British Chamber of Commerce, Council Member of the UK- Israel Tech Council, Board Member of the Federation of Bi-Lateral Chambers of Commerce and a Co-Founder of the Center for Arbitration and Dispute Resolutions Ltd. Ms. Leviant is a
certified mediator.
Ehud Gil has served as a director of Ellomay since November 12, 2020.Mr. Gil has been an
entrepreneur at the intersection of security and technology, and a consultant to the Israeli Ministry of Defense. In 2018, Mr. Gil retired from the Israeli Defense Forces (IDF), at the rank of Lieutenant-Colonel. Prior to his retirement, Mr. Gil
held key managerial positions in the IDF and the Israeli Ministry of Defense, including Head of Planning and Control Branch, Head of Training Branch in the General Headquarters of the IDF, and Director of Projects for the IDF. Mr. Gil holds an
M.Ed. (with honors) in Management and Organization of Education Systems from the University of Haifa and a B.Sc. in Materials Engineering from the Ben-Gurion University of the Negev. As indicated above, Mr. Gil is Ms. Anat Raphael’s brother.
Set forth below is information concerning Dr. Michael J. Anghel and Daniel Vaknin, our external directors:
Dr. Michael J. Anghel has served as an external director of Ellomay since
January 24, 2019. From 1977 to 1999, Dr. Anghel led the Discount Investment Corporation Ltd. (one of the major Israeli industrial holding groups) activities in the fields of technology and communications. Dr. Anghel was instrumental in founding
Tevel, one of the first Israeli cable television operators and later in personally managing the founding of Cellcom Israel Ltd. (NYSE; TASE: CEL), the largest cellular operator in Israel. In 1999 he founded CAP Ventuwasteres - a technology
venture company. From 2004 to 2005, Dr. Anghel served as CEO of DCM, the investment banking arm of the Israel Discount Bank. He led and took part in founding various technology enterprises and has served on the board of directors of various major
Israeli corporations and financial institutions including: Elron Electronic Industries Ltd., Elbit Systems Ltd., Nice Ltd., Gilat Satellite Networks Ltd., American Israeli Paper Mills Ltd., Maalot (the Israeli affiliate of Standard and Poor’s),
Hapoalim Capital Markets Ltd., Syneron Medical Ltd., Dan Hotels Ltd., the Strauss Group Ltd. and Partner Communications Company Ltd. He also served until recently as the Chairman of the Israeli Center for Educational Technology (Matach). Dr.
Anghel currently serves on the board of directors of InMode Ltd. (NASDAQ: INMD) and BiolineRx Ltd. (NASDAQ; TASE: BLRX). On all boards of directors of the publicly traded companies he served as member or chairman of the audit committees. Prior
to launching his business career, Dr. Anghel was a full-time member of the Recanati Graduate School of Business Administration of the Tel Aviv University, where he taught finance and corporate strategy. He currently serves as Chairman of the Tel
Aviv University’s Executive Program. Dr. Anghel holds a B.A. in economics from the Hebrew University in Jerusalem and an M.B.A. and Ph.D. in finance, both from Columbia University in New York.
Daniel Vaknin, has served as an external director of Ellomay since December
20, 2020. Mr. Vaknin is a financial consultant. Mr. Vaknin currently serves on the Board of Directors of Clal Insurance Company Ltd., Ilex Medical Ltd. (TASE: ILX), Arad Ltd. (TASE: ARD) and Kardan Israel Ltd. (TASE: KRDI) and served on the Board
of Directors of Global Wings Leasing Ltd. (TASE: GKL) until 2020. From 2007 to 2011 Mr. Vaknin served as Chief Executive Officer of Israel Financial Levers Ltd. From 2005 to 2007 Mr. Vaknin served as the Chief Executive Officer of Phoenix
Investments and Finance Ltd. From 2004 to 2005 Mr. Vaknin served as the Vice Chief Executive Officer of I.D.B Development Company Ltd. Prior to that Mr. Vaknin was a Senior Partner at Kesselman & Kesselman C.P.A.s, a member firm of
PricewaterhouseCoopers International Limited. Mr. Vaknin is a CPA and holds a BA in Economics and Accounting from the Hebrew University in Jerusalem.
As previously approved by our shareholders, we pay our non-executive directors (Anita Leviant, Ehud Gil, Dr. Michael J. Anghel and Daniel
Vaknin) remuneration for their services as directors based on the minimum fees permitted by the Companies Regulations (Rules for Compensation and Expenses of External Directors), 5760-2000, or the Compensation Regulations. The current cash amounts
applicable to us pursuant to the Compensation Regulations are an annual fee of NIS 54,000 and an attendance fee of NIS 1,910 per meeting (board or committee). These amounts are updated once a year based on increases in the Israeli Consumer Price
Index as compared to the base index set forth in the Compensation Regulations. According to the Compensation Regulations, which we apply to all our non-executive directors, the directors are entitled to 60% of the meeting fee if they participated
at the meeting by teleconference and not in person, and to 50% of the meeting fee if resolutions were approved in writing, without convening a meeting. In addition, each of these non-executive directors receives an annual grant of options to
purchase 1,000 ordinary shares under the terms and conditions set forth in our 1998 Share Option Plan for Non-Employee Directors.
Messrs. Nehama and Fridrich waived their right to receive the aforementioned director fees and options in connection with the execution of
a management services agreement, as amended, or the Current Management Services Agreement, among us, Meisaf Blue & White Holdings Ltd., Kanir and Keystone R.P. Holdings and Investments Ltd., approved by our shareholders in the general meeting
held on August 12, 2021.
Each of our directors also received an indemnification undertaking and an exemption letter as in effect on the
date of their appointment, forms of which were attached as exhibits to our 2021 Annual Report, and each of them is also entitled to be included in our directors and officers’ liability insurance policy. For information concerning the renewal of
the directors and officers liability insurance see Item 2 below.
Required Vote
The adoption of this proposal requires the affirmative vote of a majority of the ordinary shares of the Company voted on the matter in
person or by proxy or via the Electronic System at the Meeting.
Proposal
At the Meeting, our Board of Directors will propose that the following resolution be adopted:
“RESOLVED, to reelect each of Shlomo Nehama, Ran Fridrich, Anita Leviant and Ehud Gil, as directors of the Company to hold office until the
next annual general meeting of the Company’s shareholders and until their respective successors are duly elected and qualified.”
Shareholders may vote on the appointment of each director nominee separately on the attached proxy card. Upon the receipt of a properly
signed and dated proxy and unless otherwise instructed in the proxy, either of the persons named in the enclosed proxy will vote the shares represented thereby “FOR” the above-mentioned proposal.
ITEM 2
APPROVAL OF THE PURCHASE OF DIRECTORS AND OFFICERS LIABILITY INSURANCE POLICY
Background
The Companies Law provides that a company may, if permitted by its articles of association, obtain insurance for an office holder against
liabilities incurred with respect to an act or omission in his or her capacity as an office holder. These liabilities include a breach of duty of care to the company or a third-party, a breach of duty of loyalty (provided that the office holder
acted in good faith and had reasonable cause to assume that his or her act would not prejudice the company’s interests) and any monetary liability imposed on the office holder in favor of a third-party. Our Articles
permit us to enter into an agreement for the insurance of the liability of our office holders to the fullest extent permitted by law. Our Compensation Policy provides that our directors and officers will be covered by a directors and
officers liability insurance policy, to be periodically purchased by us subject to receipt of approvals required under the Companies Law.
The current coverage of our directors’ and officers’ liability insurance policy is $15 million. This
coverage was previously approved by our shareholders, most recently at our annual general meeting held on May 13, 2020. At such meeting, our shareholders approved the procurement of a liability insurance policy for our current and future office
holders, as follows: (i) the coverage limit per claim and in the aggregate under the policy may not exceed $15 million; (ii) the premium paid for such policy may be up to $800,000 per year, and (iii) our Compensation Committee is and
will be authorized to increase coverage and/or premiums above the maximums set forth herein by up to 30% in any year, as compared to the previous year, or cumulatively for a number of years, without additional shareholders’ approval. These
guidelines were approved a “framework transaction,” as such term is defined in Regulation 1(3) of the Companies Regulations (Relief for Transactions with Interested Parties), 2000, or the Relief Regulations.
A “framework transaction” enables us to obtain D&O liability insurance policies, whether by purchasing new insurance policies or extensions or renewals of existing insurance policies during a period of three years. The purchase of the
directors and officers insurance policies, as aforesaid, is conditioned upon the approval of the Audit and Compensation Committee and the Board of Directors of the Company, as needed, that the terms for the purchase of the policies comply with
the terms of the Framework Transaction.
In addition, our directors and officers compensation policy, most recently approved by our shareholders at the general meeting held on
August 12, 2021, or the Compensation Policy, provides that the coverage limit per claim and in the aggregate under the directors and officers liability insurance policy may not exceed $15 million and that our Compensation Committee is authorized
to increase coverage by up to 30% in any year, as compared to the previous year.
General
The premium for our directors and officers liability insurance policy purchased in 2022, effective for a period
of 18 months, was approximately $975,000 (approximately $650,000 for a 12 month period). Our Compensation Committee and Board of Directors approved, and recommend that our shareholders approve, the terms and conditions for the renewal, extension
and/or replacement, from time to time, of our directors’ and officers’ liability insurance policy for all current and future directors and officers (including office holders who may be deemed to be controlling shareholders or relatives of
controlling shareholders, within the meaning of the Companies Law) as follows: (i) the coverage limit per claim and in the aggregate under the policy may not exceed $15 million; (ii) the premium paid for such policy for a 12 month period may be
up to $900,000 per year, and (iii) our Compensation Committee is and will be authorized to increase coverage and/or the maximum annual premium set forth under (ii) above by up to 30% in any year, as compared to the previous year, without
additional shareholders’ approval. No further approval of our shareholders will be required in connection with any renewal and/or extension and/or purchase of a directors and officers liability insurance policy entered into in compliance with the
foregoing terms and conditions.
Our Compensation Committee and Board of Directors further confirmed that this resolution is for the benefit of our company considering,
among others, the following: (i) obtaining D&O insurance coverage is customary and acceptable in companies in general and specifically in companies such as our company, with securities traded on both a US market and the Tel Aviv Stock Exchange,
(ii) adequate D&O insurance coverage enables and will continue to enable our company to obtain and retain qualified personnel and our office holders to continue to perform their services and duties taking into account the risks inherent to our
company’s business and listing, (iii) the proposed terms are in line with market conditions, (iv) the coverage terms are identical for all directors and officers and are in line with our Compensation Policy, (v) the purchase of D&O insurance
coverage does not constitute a “distribution” as such term is defined in the Companies Law, (vi) adequate D&O insurance coverage is required in order to continue to enable our directors and officers to perform their duties, specifically in
light of the risks and exposures existing for directors and officers of publicly traded companies, and (vii) the proposed terms are reasonable in light of the advice received from our insurance advisors and broker and in light of our business and
operations.
In connection with the approval of the inclusion of office holders who are deemed to be controlling shareholders
or relatives of controlling shareholders in our D&O liability insurance coverage, the resolution will be approved as, and constitute, a “framework transaction,” as described above.
Required Vote
Pursuant to Section 273 of the Companies Law, the terms of service of members of our Board of Directors
that are in accordance with our Compensation Policy generally require the approval of our Compensation Committee, Board of Directors and the affirmative vote of the holders of a majority of the shares present, in person or by proxy, and voting
on the matter. In addition, pursuant to Sections 272(C1) and 275 of the Companies Law, the approval of the terms of employment and service of a chief executive officer and of office holders who are deemed to be controlling shareholders (as such
term is defined under Section 268 of the Companies Law) or are relatives of controlling shareholders, respectively, requires the affirmative vote of the holders of a majority of the shares voted on the matter in person or by proxy or
via the Electronic System at the Meeting; provided that at least one of the following “special majority” requirements is met: (i) the shares voting in favor of the matter include at least a majority of the shares voted by shareholders who are not
controlling shareholders and who do not have a personal interest in the approval of the resolution or (ii) the total number of shares voted against the approval of the resolution by shareholders referenced under (i) does not exceed 2% of our
outstanding voting rights.
A “controlling shareholder” for purposes of the requisite majority is defined as a shareholder that has the ability to direct the activity
of the company, other than an ability resulting only from serving as a director or having another position in the company. A person is deemed to control a company if he holds, alone or together with others, one half or more of the “means of
control” in the company or holds 25% or more of the voting rights in the company’s general meeting (if there is no other person that holds more than 50% of the voting rights in the company). Based, among other things, on their holdings in our
shares and the 2008 Shareholders Agreement, Mr. Shlomo Nehama, our Chairman of the Board and a director nominee, Nechama Investments, Kanir, Mr. Fridrich, who is a member of our Board, our Chief Executive Officer and a director nominee and Ms.
Raphael, may each be deemed to be our “controlling shareholders” for purposes of the required “special majority” and Messrs. Nehama and Fridrich may also be deemed to have a “personal interest” in the approval of the resolution due to the positions
they hold. In addition, Mr. Gil, who is the brother of Ms. Raphael, may be deemed to be a relative of a controlling shareholder.
The Companies Law requires that each shareholder voting on the proposal indicate whether or not the shareholder is a “controlling
shareholder” or has a “personal interest” in the approval of the proposed resolution. Otherwise, the shareholder is not eligible to vote on this proposal and his or her vote will not be counted for the purposes of the “special majority” requirement
of the proposal.
Under the Companies Law, a “personal interest” of a shareholder (i) includes a personal interest of any member of the shareholder’s family
or of the shareholder’s spouse’s family (or a spouse thereof) or a personal interest of a company with respect to which the shareholder (or any of the aforementioned family members) serves as a director or chief executive officer, owns at least 5%
of the shares or has the right to appoint a director or chief executive officer, and (ii) excludes an interest arising solely from the ownership of our ordinary shares. Under the Companies Law, in the case of a person voting by proxy for another
person, “personal interest” includes a personal interest of either the proxy holder or the shareholder granting the proxy, whether or not the proxy holder has discretion how to vote. Shareholders who hold their shares through banks, brokers or
other nominees that are members of the TASE should indicate whether or not they have a personal interest as explained above on the form of the deed of vote that we will file on MAGNA, the website of the Israel Securities Authority.
To the extent the proposed resolution is not approved by the “special majority” described above, but rather with an
ordinary majority, it will be valid in connection with all of our office holders whose terms of service and employment do not require an approval by a special majority of our shareholders. In addition, in the event the proposed resolution is not
approved by the “special majority”, we may elect to utilize an exemption that is available under the Relief Regulations, which provides that in the event a company’s compensation committee and board of directors determine that the insurance
provided to office holders who are deemed to be controlling shareholder or a chief executive officer or a relative of a controlling shareholder is: (i) upon terms worse or identical to those provided to the company’s other officers and directors,
(ii) on market conditions and (iii) cannot materially affect the company’s profitability, assets or liabilities, then the approval of the company’s shareholders for the provision of liability insurance to such persons will not be required.
Proposal
At the Meeting, our Board of Directors will propose that the following resolution be adopted:
“RESOLVED, that the terms and conditions for the purchase, renewal, extension and/or replacement of the directors’ and officers’ liability
insurance policy of the Company and its subsidiaries, for all office holders of the Company and its subsidiaries, who may serve from time to time, as a framework transaction and as set forth in the Proxy Statement, be and hereby are approved, that all actions heretofore taken by the Company’s management in connection with the subject matter of the foregoing resolution are hereby ratified and approved, and that these resolutions are for the benefit of the Company.”
Upon the receipt of a properly signed and dated proxy, which, for purposes of the approval of the resolution in connection with office
holders deemed to be controlling shareholders or their relatives, includes an indication as to whether or not the shareholder is a controlling shareholder or has a “personal interest” in the approval of the proposal as explained above, and unless
otherwise instructed in the proxy, either of the persons named in the enclosed proxy will vote the shares represented thereby “FOR” the above-mentioned proposal.
ITEM 3
APPROVAL OF TERMS OF EMPLOYMENT OF MR. ASAF NEHAMA
Background
The Companies Law provides that an agreement with respect to the terms of employment of a relative of a public company’s “controlling
shareholder” requires the approval, in the following order, of the company’s compensation committee, board of directors and shareholders, in the special majority described below.
At the Meeting, our shareholders will be asked to approve the terms of employment of Mr. Asaf Nehama, the son of
Mr. Shlomo Nehama, our Chairman of the Board and one of our controlling shareholders. Mr. Asaf Nehama, 25, holds a dual B.A degree in Business (specializing in finance) & Psychology from the Reichman University in Israel and will be employed
by the Company as an analyst in a full-time position.
General
At meetings held by our Compensation Committee and Board of Directors during November 2022, our Compensation
Committee and Board of Directors approved, and recommended that our shareholders approve, the following terms of employment for Mr. Asaf Nehama:
|
• |
Monthly Salary – Mr.
Asaf Nehama will receive a gross monthly salary of NIS 7,000 and a monthly lump sum payment for overtime in the amount of NIS 5,000 (the monthly gross salary together with the monthly lump sum for overtime (i.e. NIS 12,000, or currently
approximately $3,490), the Salary).
|
|
• |
Social and Ancillary Benefits – Mr. Asaf Nehama will be entitled to all social benefits and rights as required under applicable law (pension,
severance pay, convalescence pay, etc.) and as customary in the Company, all based on his Salary. Mr. Asaf Nehama will be subject to the provisions of Section 14 of the Severance Pay Law, 5723-1963. Mr. Asaf Nehama will be entitled to sick
leave under law and will be able to use the sick days as customary in the Company. The Company will deposit an amount equal to 7.5% of the Salary to an advanced study fund per Mr. Asaf Nehama’s selection and shall deduct from his Salary an
amount equal to 2.5% of the Salary that shall be deposited in said advanced study fund as the employee’s share, as customary in the Company.
|
|
• |
Vacation – Mr. Asaf Nehama will be entitled to paid vacation days as determined under the Israeli Annual Vacation Law, 1951 plus two (2) days per
year (pro rata) and will be entitled to transfer from year to year up to 15 vacation days.
|
|
• |
Reimbursement of Expenses – Mr. Asaf Nehama shall be entitled to reimbursement of expenses, travel expenses and meal expenses based on the policies
and amounts as customary in the Company, currently travel expenses in the amount of NIS 300 per month and meal expenses in the amount of NIS 900 per month.
|
| |
•
|
Termination
of Employment – the notice period during the first six months of employment will be pursuant to the Israeli Prior Notice of Termination Law, 2001 and thereafter 30 days, as customary in the Company.
|
Mr. Asaf Nehama has been employed by us since October 1, 2022, however an employment agreement that includes the
terms of employment proposed herein has not been signed yet and no payments were made to him. Therefore, our shareholders are asked to approve the proposed terms of employment effective October 1, 2022.
In their deliberations of the proposed terms of employment of Mr. Asaf Nehama, the members of our Audit and
Compensation Committee and Board of Directors noted the following: (i) the proposed terms of employment are based on terms customary in the Company and on a comparative study ordered at the request of the Audit and Compensation Committee, which
provided a range of salaries and a recommended range of salaries for an analyst position, and the proposed salary for Mr. Asaf Nehama is the midpoint of the recommended range, (ii) based on his education and skills, Mr. Asaf Nehama is qualified
for the position of an analyst in the Company, (iii) Mr. Asaf Nehama’s familiarity with the Company and its operations is expected to contribute to his integration in the Company and to serve as an additional incentive for his retention and
continued contribution to the Company, alongside the expected integrity and special loyalty to the Company, and (iv) the terms of employment of Mr. Asaf Nehama do not constitute a “distribution” as such term is defined in the Companies Law.
Therefore, our Audit and Compensation Committee and Board of Directors approved, and recommend that our shareholders approve, the proposed terms of employment of Mr. Asaf Nehama and determined that they are for the benefit of the Company.
Required Vote
Pursuant to Section 275 of the Companies Law, the approval of the terms of employment of relatives of
persons deemed to be controlling shareholders (as such term is defined under Section 268 of the Companies Law) or are, respectively, requires the affirmative vote of the holders of a majority of the shares voted on the matter in person
or by proxy or via the Electronic System at the Meeting; provided that at least one of the following “special majority” requirements is met: (i) the shares voting in favor of the matter include at least a majority of the shares voted by
shareholders who are not controlling shareholders and who do not have a personal interest in the approval of the resolution or (ii) the total number of shares voted against the approval of the resolution by shareholders referenced under (i) does
not exceed 2% of our outstanding voting rights. For more information concerning the definitions of “controlling shareholder” and “personal interest,” see “Required Vote” under Item 2 above.
The Companies Law requires that each shareholder voting on the proposal indicate whether or not the shareholder is a “controlling
shareholder” or has a “personal interest” in the approval of the proposed resolution. Otherwise, the shareholder is not eligible to vote on this proposal and his or her vote will not be counted for the purposes of the “special majority” requirement
of the proposal.
Proposal
At the Meeting, our Board of Directors will propose that the following resolution be adopted:
“RESOLVED, to approve the terms of employment of Mr. Asaf Nehama as set forth in the proxy statement, effective October 1, 2022, and to
determine that this resolution is for the benefit of the Company.”
Upon the receipt of a properly signed and dated proxy, which includes an indication as to whether or not the shareholder is a controlling
shareholder or has a “personal interest” in the approval of the proposal as explained above, and unless otherwise instructed in the proxy, either of the persons named in the enclosed proxy will vote the shares represented thereby “FOR” the above-mentioned proposal.
ITEM 4
REAPPOINTMENT OF INDEPENDENT AUDITORS
Background
Shareholders will be asked to reappoint Somekh Chaikin, a member of KPMG International, as our independent auditors for the year ending
December 31, 2022 and until the next annual general meeting of our shareholders and to authorize our Board of Directors to approve their fees, following the approval of our Audit Committee, in accordance with the volume and nature of their
services. Somekh Chaikin have been our independent auditors since December 2011.
The following table sets forth the fees paid by us and our subsidiaries to our principal independent registered public accounting firms
during 2020 and 2021:
| |
|
|
|
|
|
|
| |
|
|
|
|
Audit Fees(1)
|
|
|
453
|
|
|
|
317
|
|
|
Audit-Related Fees(2)
|
|
|
21
|
|
|
|
35
|
|
|
Tax Fees(3)
|
|
|
49
|
|
|
|
53
|
|
| |
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
______________________
| (1) |
Professional services rendered by our independent registered public accounting firm for the audit of our annual financial statements or services that are normally provided by the accountants
in connection with statutory and regulatory filings or engagements.
|
| (2) |
Including professional services related to due diligence investigations.
|
| (3) |
Professional services rendered by our independent registered public accounting firm for international and local tax compliance, tax advice services and tax planning performed during the
fiscal year.
|
Required Vote
The adoption of this proposal requires the affirmative vote of a majority of the ordinary shares of the Company voted in person or by or
via the Electronic System proxy at the Meeting.
Proposal
At the Meeting, our Board of Directors will propose that the following resolution be adopted:
“RESOLVED, to reappoint Somekh Chaikin, a member of KPMG International, as the independent auditors of the Company for the fiscal year
ending December 31, 2022, and until the next annual general meeting of shareholders, and that the Board of Directors, following the approval of the Audit Committee, be, and it hereby is, authorized to approve the payment of fees of said independent
auditors, considering the volume and nature of their services.”
Upon the receipt of a properly signed and dated proxy, and unless otherwise instructed in the proxy, either of the persons named in the
enclosed proxy will vote the shares represented thereby “FOR” the above-mentioned proposal.
ITEM 5
CONSIDERATION OF THE ANNUAL FINANCIAL STATEMENTS
As required by the Companies Law, our independent auditors’ report and audited consolidated financial statements for the fiscal year ended
December 31, 2021, will be presented for discussion at the Meeting.
Our audited financial statements for the year ended December 31, 2021 are included in our 2021 Annual Report on Form 20-F, which was filed
with the SEC on March 31, 2022. You may receive a hard copy of the complete audited financial statements for the fiscal year ended December 31, 2021, free of charge, upon request. You may review a copy of our filings with the SEC, including
exhibits and schedules, and obtain copies of such materials at the SEC’s public reference room at Room 1580, 100 F Street, N.E, Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 for further information on the public reference room. The
SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding registrants that we file electronically with the SEC. These SEC
filings are also available to the public from commercial document retrieval services.
This item will not involve a vote of the shareholders.
PROPOSALS OF SHAREHOLDERS
Any of our shareholders who intend to present a proposal at a shareholders’ meeting must satisfy the requirements of the Companies Law.
Under the Companies Law, only shareholders who severally or jointly hold at least one percent (1%) of our outstanding voting rights are entitled to request that our Board of Directors include a proposal, in a future shareholders’ meeting, provided
that such proposal is appropriate to be discussed in such meeting. Any shareholders of the Company who intend to present proposals at the Meeting must submit their proposals in writing to us at the address set forth above, attention: CFO, by no
later than November 30, 2022. If our Board of Directors determines that a shareholder proposal is appropriate for inclusion in the agenda in the Meeting, we will publish a revised agenda for the Meeting no later than December 7, 2022 by way of
issuing a press release and submitting a Current Report on Form 6-K to the SEC and the ISA.
OTHER BUSINESS
The Board of Directors is not aware of any other matters that may be presented at the Meeting other than those mentioned in the attached
Company’s Notice of Annual General Meeting of Shareholders. If any other business is properly brought before the Meeting, it is intended that the persons named as proxies, or either one of them, will vote the shares in accordance with the
recommendation of our Board of Directors.
| |
By Order of the Board of Directors,
/s/ Shlomo Nehama
Shlomo Nehama
Chairman of the Board of Directors
|
Tel Aviv, Israel
November 23, 2022
