Adequate Management of a Public Benefit Company 2018

 

​Nature of the Service

An Application for Confirmation of Adequate Management of a Public Benefit Company (PBC) for 2018.


Applicable Provisions of the Law


Required Documents and Guidelines

  • Application for a Certificate of Orderly Management for the year 2018
Pursuant to the provisions under the law, it is required to submit the financial statements, literal report and ancillary documents, as aforesaid, by June 30th of the year following the statements’ year.
Therefore, for obtaining a Certificate of Orderly Management for the year 2018, you shall be required to submit all of the documents (financial statements, literal report and ancillary documents) for the year 2016 by 30.6.2017.
Please note, companies in which only one director is serving in office, his signature alone shall be sufficient, any place the signatures of two directors are required. It should be noted that in the event where only one director is in office in the company, such shall be noted on the Certificate of Orderly Management, to the extent possible.

  • Financial statements for the year 2016 
Financial statements (including balance sheets) signed with the original signatures of two of the members of the board of directors, noting their names. Please note, a company the annual turnover of which exceeds NIS 1,200,000, is required to appoint an accountant. The accountant shall draw the financial statements pursuant to manifesto 69 and standard 5 and sign the opinion.”
The list of contributions the annual sum of which from a single contributor exceeds NIS 20,000 is required to be specified in the financial statements, specifying the names of the contributors for the year 2016. It is also possible to attach such as an appendix to the financial statements.

  • Report on contributions made by a foreign country entity
A company whose financial turnover exceeds NIS 300,000 shall be required to note in its financial statements receipt of contributions from a foreign country entity the accumulating value of which exceeds NIS 20,000. Should such be stated in the literal report - there is no need to specify so in the financial statements as well.
Clarification: Contributions made by a foreign country entity does not mean any contribution received from abroad, but rather a contribution made by a foreign country or an entity under its control etc., pursuant to the definitions under law. Additionally, in the event where a company had received such contributions, it shall be required to submit quarterly statements (there are online forms on the website).

  • Literal report for the year 2016 
The literal report shall be signed with the original signatures of two of the board of directors’ members noting their names. The company shall be required to submit a literal report even in the event where it had no financial activities during these years.

  • Protocol of the shareholders meeting approving the financial statements and literal reports for the year 2016 
The protocol shall be signed by the chairman of the meeting and with the original signatures of two of the board of directors’ members noting their names.
A recommended form for filling the literal report is posted on the website.

  • Recommendations of the audit committee for approving the financial statements for the year 2016 
The recommendations shall be signed by at least one member of the audit committee, noting his name. An online form may be found on the website.

  • List of the five persons on the payroll receiving the highest wages for the year 2016 
In addition to stating the names of the 5 persons on the company’s payroll receiving the highest wages, the sum paid to each of them shall be stated for the financial statements’ year (2016). The list shall specify all of the information as provided under section 36(b) of the Amutot Law. An online form may be found on the website.

  • Payment of annual fees for the year 2017 and previous years where such had not been paid.

  • Annual statements - public benefit company 
A public benefit company is required, pursuant to the provisions under section 141 of the Companies Law, to submit financial statements to the Registrar of Companies.

  • Appointment of an inside auditor for a public benefit company the annual turnover of which exceeds NIS 10 million -  
A public benefit company the turnover of which exceeds NIS 10 million is required to appoint an inside auditor, and is required to submit to the Registrar the protocol of the general meeting/ board of directors concerning such appointment.

Guideline page for a public benefit company -

Forms

 



Service Fees

Free of charge
For the avoidance of doubt, the public benefit company shall be required to meet payment of annual fees for the year 2016 and previous years where such had not been paid.


Options for Obtaining the Service

  • Mail delivery
The Israeli Corporations Authority - the Registrar of Associations Unit, 39 Yirmiyahu St. Jerusalem 9446722 POBox 34071, Jerusalem 9134001.

  • ​Office hours
39 Yirmiyahu St. Jerusalem - Habira Towers, Building 1, 10th floor.
Sunday, Monday, Wednesday, Thursday - between 8:30 - 12:30 Tuesday - deposit of documents only in the box (on the building’s entrance floor).


Handling time

Up to 60 business days, where all documents had been submitted to the Registrar properly.


Comments

  • Office of a single director in a company - A company in which only one director is serving in office, his signature alone shall be sufficient, any place the signatures of two directors are required. In the event where only one director is in office in the company, such shall be noted on the Certificate of Orderly Management, to the extent possible.
  • Minimal continuous term of activity - A Certificate of Orderly Management shall be granted to a company complying with the requirements aforementioned, only upon the expiration of two years of continuous activity.
  • Should the association/ public benefit company wish to obtain a Certificate of Orderly Management, it shall be required to operate pursuant to the guidelines. Date of submitting documents is by June 30th of the year following the financial statements’ year. Associations included in the extensions arrangement agreed vis-à-vis the Institute of Certified Public Accountants in Israel, shall be entitled to submit the documents on a later date in accordance with the arrangement.
  • In the event where severe flaws had been found in the conduct of the association/public benefit company, or in the event where the association or public benefit company had not cooperated as required as part of an inspection or audit on behalf of the Registrar, or as part of a process for repairing defects, and consequently, pursuant to the undertaking of the association or public benefit company or operations it had carried out pursuant to the Registrar’s requirements, it had been decided to grant the association or public benefit company a Certificate of Orderly Management, the confirmation shall be granted in special wording, per the decision of the responsible entity on behalf of the Registrar.
  • A Certificate of Orderly Management means that the professional entity on behalf of the Registrar has examined the current documents submitted by the association or public benefit company, and has found that such had been submitted correctly. Should findings be discovered according to which the association or the public benefit company operate in violation of the provisions under law, the professional entity on behalf of the Registrar shall consider refraining from granting a Certificate of Orderly Management for the subsequent year or revoking a confirmation that had been granted, inter alia in light of the severity of the findings and the extent of the association’s or public benefit company’s cooperation in repairing such per the Registrar’s requirements.
  • For frequently asked questions - click here​