Shareholder value and the fiduciary duty of company directors: a view from Israel

Israel fiduciaryThis is our second Israel-related blog in the past week. From TJN-Israel and the Corporate Responsibility Institute at the College of Law and Business, a new report looking at a subject dear to our hearts: whether or not company directors are bound by their fiduciary duties to avoid tax. 

We already obtained an unequivocal formal legal opinion on this for the UK, that there is no such duty – and all the evidence suggest this is the case for the U.S. and many other countries. Now this new paper analyses Israeli laws in relation to corporations’ tax planning, looking at the proper balance to be struck between the fiduciary duties of senior corporate officials, their obligations to the public, and their professional ethical codes. 

The paper argues, among other things, that because the corporation is itself obliged to refrain from any activity that is not aligned with the public interest, the fiduciary duty of senior corporate officials does not include an obligation to engage in aggressive tax planning. With regard to professional consultants, such as lawyers and accountants who work in the corporation, it is argued that not only do they have no obligation to engage in aggressive tax planning, but participation in aggressive tax planning might even be considered a violation of their ethical duties — as they are subject to enhanced loyalty obligation to the public, for example as ‘officers of the court’.

Read the full report here.

One more to add to our Shareholder Value archives.


Related Posts

UN must defend target to curtail multinational companies’ tax abuse

Photo by Luca Santori, Creative Commons LicenseThe Tax Justice Network, The Independent Commission for the Reform of International Corporate Taxation, and the Global Alliance for Tax Justice call on the UN Secretary General to make sure the commitment to action on tax abuses by multinational companies remains part of the new UN Sustainable Development Goals.

READ MORE →

The BVI: Responsible for worldwide tax losses of $37.5 billion a year

BVI report blogAn extraordinary report by consultants Capital Economics, for BVI Finance, claims that the British Virgin Islands are responsible for $1.5 trillion of assets invested around the world, and that these result in 2.2 million jobs and $15 billion in tax revenue. A better approximation would be that the BVI imposes global tax losses of $37.5 […]

READ MORE →

Event: Making Tax Work for Women in the UK and Globally

Invitation_ Tax and Gender eventOn Wednesday 28th June 2017 at 16.30 our very own Liz Nelson will be speaking at an event in London that aims to bring together gender and tax justice advocates to highlight the need for coherent and gender-responsive fiscal policies to safeguard the rights of women and girls both in the UK and globally. The […]

READ MORE →

Historic event on women, human rights and tax justice in Bogota

BogotaLast week civil society organisations, researchers, labour union activists and policy makers met in Bogota, Colombia to explore how tax justice issues can ensure governments, multinational corporations and others meet their obligations to women in order to secure their full range of human rights. The Women’s Rights and Tax Justice conference opened with a conversation […]

READ MORE →

The Offshore Wrapper: the Panama Papers, one year on

Photos from the Protest outside PwC 1 Embankment Place, part of the Global week of action for tax justiceWelcome to the Offshore Wrapper – your weekly update from TJN.  Happy Paniversary! This week it’s been one year since the Panama Papers were leaked, and a number of organisations around the world have been marking the occasion though the global week of action for tax justice. In London, activists from the TJN and the […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top