Companies Law (Amendment No. 37) (Corporate Governance in Public Companies without a Controlling Shareholder) Bill

What does the bill do?

The bill adapts the Companies Law to public companies that have no controlling shareholder, in order to deal with an agency problem different from that in concentrated companies. The amendment provides that in such a company a majority of independent directors will be appointed instead of external directors, the requirement to appoint external directors will be canceled, and audit, compensation and nominations committees with a similar composition will be established. In addition, it is proposed to extend directors' terms to up to three years and to establish a nominations committee that will operate independently of management, while preserving shareholders' rights to propose candidates themselves.