Discount Bank has motioned the Tel Aviv District Court to declare and to order that it is entitled to appoint a director on its behalf to the Tel Aviv Stock Exchange Board of Directors.
The bank alleges that it is in dispute with TASE over the proper construction of the TASE’s Articles. The Articles provide that the five banks having the highest market volume of stock exchange transactions among banks being TASE members, are entitled to appoint representatives to the Tel Aviv Stock Exchange Board.
Discount Bank alleges that on examining a calculation made by the TASE, it discovered, to its astonishment, that the TASE had departed from its long standing custom, and also from its Articles of Incorporation. Without any warning or advance notice, the bank alleged, the TASE had retroactively subtracted from its calculation of the bank’s transaction volume, the transactions concluded by Ilanot-Discount.
The Tel Aviv Stock Exchange, Discount Bank alleges, had made it its practise throughout the years to include the activity of Ilanot-Discount in its calculation of the bank’s activity. As a result of the erroneous and exceptional method of calculation used by the TASE, the bank suddenly found itself rated in sixth place in terms of activity volume, whereupon it is not entitled to appoint a director.
Published by Israel's Business Arena December 29, 1998