Judicial Review Standards

Summary

Judicial review in corporate law in Israel uses the beyond reasonable standard for company management decisions. This means that the court examines whether the companys management decisions were made in a manner that deviates from what is considered reasonable. The business judgment rule allows company leadership to make business decisions without court interference, provided they act in good faith and with the best knowledge and experience. Full fairness implies that the companys management acted fairly and professionally. Judicial review is applied when there are legal grounds for the managements decisions or actions, including unusual transactions. Preliminary hearings usually occur before substantive meetings, and both parties are generally required to attend initial pre-trial hearings.