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Government Companies Law, 5735-1975

חוק החברות הממשלתיות, תשל"ה-1975

Published: 1975-07-04Consolidated Hebrew text as of 2026-08-02 · Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Chapter VIII-C: Settlement of Disputes between Government Companies in Infrastructure Matters

Definitions§

59u.

In this Chapter –

"dispute settlement committee" means the Infrastructure Coordination Committee established under section 55b of the Natural Gas Sector Law, 5762-2002;

"infrastructure company" means a government company or government subsidiary listed in the First Schedule, as well as any government subsidiary thereof whose business relates to infrastructure, excluding an operating company as defined in the Metro Rail (Metro) Law, 5782-2021, in a dispute relating to the metro project as detailed in section 96 of that Law;

"infrastructure works" means the planning or execution of work connected with the infrastructure of an infrastructure company, including the construction, development and relocation of infrastructure;

"infrastructure" includes roads, railways, seaports, airports, installations and overhead or underground lines for the transmission, distribution, supply, transfer or storage of electricity, telecommunications as defined in the Communications Law (Telecommunications and Broadcasting), 5742-1982, sewage, water, fuel, gas, hazardous materials, as well as for waste disposal and sewage treatment.

Disputes Settlement Committee and Its Functions§

59v.
(a)The function of the disputes settlement committee shall be to adjudicate in disputes between infrastructure companies on the following matters:
(1)coordination with respect to infrastructure works;
(1a)the transfer of information required for the planning of infrastructure or the execution of infrastructure works;
(2)the scope of infrastructure works;
(3)timetables for the execution of infrastructure works;
(4)the payment required for the execution of infrastructure works;
(5)coordination with respect to passage through areas held by an infrastructure company;
(6)any other dispute that delays or is liable to delay infrastructure works.
(b)Where an additional party that is not an infrastructure company is a party to a dispute between infrastructure companies as referred to in subsection (a), in whole or in part (in this Chapter – the additional party), the disputes settlement committee shall be competent to adjudicate in that part of the dispute relating to the additional party, if that party's written consent has been given, and where the State is the additional party – if written approval has been given by the Attorney General.
(c)The disputes settlement committee shall not deliberate upon or adjudicate in a dispute that another body operating under law is competent to decide (in this section – the competent body).
(d)Notwithstanding the provisions of subsection (c), where a dispute that is within the committee's jurisdiction under the provisions of this Chapter is before the committee, and the committee finds that for the purpose of adjudicating thereon a decision is required on a matter that a competent body is authorised to decide, the committee shall refer the matter for that body's decision; the competent body shall decide on the matter and shall notify the committee of its decision within thirty days, and it may permit the committee to deliberate upon and decide on that matter, including subject to conditions it shall prescribe; where the competent body has notified the committee in a reasoned notice that an additional period is required for the purpose of reaching a decision on the matter, the said period shall be extended by an additional period not exceeding thirty days; the decision of the competent body shall be binding on the committee.
(e)Subject to the provisions of this Chapter, exclusive jurisdiction to deliberate upon and adjudicate in a dispute as referred to in this section is vested in the disputes settlement committee, unless it has decided not to adjudicate in the dispute in accordance with the provisions of section 59ab(e).
59w.§

(Repealed — תשפ״ד)

Disqualifications from Office and Termination of Office§

59x.
(a)The following shall not serve as a member of the disputes settlement committee –
(1)a person declared legally incompetent or a bankrupt;
(2)a person convicted of an offence which, by reason of its nature, gravity and circumstances, renders that person unfit to serve as a member of the committee;
(3)a person convicted by a final judgment of one of the offences listed in section 226 of the Companies Law, and five years have not yet elapsed from the date of the judgment in which that person was convicted;
(4)a person who may find themselves, directly or indirectly, in a situation of conflict of interests between their function as a member of the committee and another interest or other occupation of theirs; for this purpose, a member of the committee who is a State employee shall not be regarded as being, by virtue of that person's position in State service, liable to be in a conflict of interests as aforesaid.
(b)A member of the disputes settlement committee shall cease to hold office if a condition of the conditions for that person's appointment ceases to be fulfilled, or if a circumstance that disqualifies a person from serving as a member of the committee as referred to in subsection (a) is fulfilled in respect of that person.
(c)(Repealed)
(d)A member of the committee, other than the Director General of the Ministry of Finance, shall also cease to hold office before the end of that person's term of office in any of the following circumstances:
(1)in the opinion of the chairperson of the committee, that person is permanently prevented from fulfilling their functions;
(2)the chairperson of the committee, after consultation with the Attorney General, finds that that person is not fulfilling their functions properly;

a decision concerning termination of office under this subsection shall be reasoned and in writing and shall be given after the member of the committee has been afforded an opportunity to present their arguments on the matter before the chairperson of the committee.

Conflict of Interests in a Specific Dispute§

59y.

A member of the disputes settlement committee shall refrain from participating in the committee's deliberations if the dispute before it is liable to place that member, directly or indirectly, in a situation of conflict of interests between their function as a member of the committee and another interest or other occupation of theirs relating to that dispute.

Application to the Disputes Settlement Committee§

59z.
(a)An infrastructure company may apply, in writing, to the disputes settlement committee, with a request that it adjudicate in a dispute that the committee is competent to adjudicate in under this Chapter, provided that fifteen days have elapsed from the day on which it notified the other infrastructure company in writing of its intention to apply to the disputes settlement committee if the dispute is not resolved, and where the infrastructure companies as aforesaid are within the responsibility of the same Minister – thirty days from the date of the notice as aforesaid.
(b)Where the Minister responsible for the affairs of an infrastructure company or the Minister of Finance considers that a dispute exists that the disputes settlement committee is competent to adjudicate in under this Chapter, that Minister may apply to the committee, in writing, with a request that it adjudicate in the dispute, provided that thirty days have elapsed from the date on which the Minister gave written notice to the infrastructure companies that are parties to the dispute, of the intention to apply to the committee as aforesaid, if they do not resolve the dispute between themselves within thirty days.
(c)Where an infrastructure company or a Minister has applied to the committee as referred to in this section, they shall, at the time of their application, transmit a copy thereof to the other parties to the dispute, to the Minister of Finance, to the Ministers responsible for the affairs of the infrastructure companies that are parties to the dispute, and if there is an authority empowered by law to supervise the activities of an infrastructure company that is a party to the dispute, in the matter relating to the dispute – also to that authority as aforesaid.

The Time for the Decision of the Disputes Settlement Committee§

59aa.
(a)The disputes settlement committee shall decide in a dispute before it within as short a period as possible in the circumstances of the matter, and no later than the end of forty-five days from the date on which it received an application as referred to in section 59z; the committee may extend the said period, for special reasons that shall be recorded.
(b)Where the committee finds that there is an additional party in the dispute before it, it shall apply to that party in order to ascertain whether that party agrees that the part of the dispute relating to it shall be decided by the committee, and shall notify that party of the time for its response on that matter; where the committee has applied as aforesaid, the time for its decision under subsection (a) shall be counted from the date of the additional party's response or from the end of the time prescribed for the response, as the case may be.

Ruling of the Dispute Settlement Committee§

59ab.
(a)The Dispute Settlement Committee shall rule on a dispute in a manner that appears to it to be efficient, fair and just in the circumstances of the matter, having regard, inter alia, to the applicable law and to the public interest; the ruling of the Committee shall be given in writing and shall be reasoned.
(b)The Committee shall give its mind in its ruling, inter alia, to the rights of the holders of rights in the infrastructure companies that are parties to the dispute.
(c)Where a dispute before the Committee concerns only the scope of the payment for infrastructure works or the date of payment, the Committee may order, before giving its final ruling, that the execution of the infrastructure works shall not be delayed, and may impose their execution upon one or more infrastructure companies that are parties to the dispute.
(d)The Committee may give a compromise agreed to by all parties to the dispute the force of a final ruling.
(e)The Committee may decide not to adjudicate a dispute if it is of the opinion that it is not suitable for hearing before it, inter alia, on account of its limited scope or on account of the involvement of additional parties therein, provided that a majority of the members of the Committee, including the chairperson of the Committee, have agreed thereto; a decision of the Committee under this subsection shall be given in writing within one week of the date on which it received an application as referred to in section 59z, or from the date of receipt of all the documents required by it for the purpose of ruling on the dispute, whichever is the later, and the Committee shall notify the parties to the dispute of its decision upon receipt thereof.
(f)A final ruling of the Dispute Settlement Committee in respect of which a leave to appeal application has not been filed within the period prescribed therefor, or in respect of which leave to appeal has not been granted, shall have the force of a final judgment of a court.
59ac.§

(Repealed — תשפ״ד)

Procedure of the Dispute Settlement Committee§

59ad.
(a)The Dispute Settlement Committee shall convene at least once every two weeks, insofar as disputes between infrastructure companies are before it.
(b)The Committee may avail itself of advisers and experts as required, at its discretion, for the purpose of ruling on a dispute before it.
(c)The decisions of the Committee shall be adopted by a majority of its members; where votes are equal, the vote of the chairperson of the Committee shall be decisive.
(d)The Committee may require a person to furnish information, documents, knowledge or explanations required by it for the purpose of ruling on the dispute, and may require such person to appear before it, and for that purpose it shall have the powers vested in a commission of inquiry under sections 9 to 11 of the Commissions of Inquiry Law, 5729-1968.
(e)The Committee may impose upon the parties the costs of the hearing, including attorney's fees, witness fees, and fees of experts and advisers, at its discretion.
(f)The Minister of Justice, after consulting with the Minister of Finance, may prescribe provisions regarding rules of procedure for the Committee; the Committee shall determine its rules of procedure and work insofar as they have not been prescribed under this Law.

Administrative Appeal§

59ae.

A final ruling of the Dispute Settlement Committee is appealable on a point of law only before the Administrative Affairs Court, if leave has been granted therefor by a judge of the Administrative Affairs Court; an application for leave to appeal under this section shall be filed within thirty days of the date of service of the ruling of the Committee; where leave to appeal is granted, the application shall be treated as a notice of appeal.

Amendment of the First Schedule§

59af.

The Minister of Finance, after consulting with the Minister responsible for the affairs of a government company or a government subsidiary, may, by Order, add such a company to the list of companies in the First Schedule, or delete it therefrom.

Duty of Reporting – Temporary Provision§

59ag.

During the period from the date of commencement of the Government Companies Law (Amendment No. 24), 5768-2008, until the end of three years from that date, the Authority shall submit to the Constitution, Law and Justice Committee of the Knesset, through the Minister of Finance, once a year, a report on the implementation of the provisions of this Chapter; the report shall include, inter alia, the following:

(1)the composition of the Dispute Settlement Committee or Committees established;
(2)the disputes brought before the Dispute Settlement Committee;
(3)disputes in which the Dispute Settlement Committee decided not to adjudicate;
(4)the length of time required for ruling on disputes that were decided;
(5)appeals filed against rulings of the Dispute Settlement Committee;
(6)difficulties that arose in the implementation of the provisions of this Chapter.

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Chapter IX: Application of the Law

Application to Bodies That Are Not Share Companies§

60.

The provisions of this Law shall apply, with the necessary modifications, also to companies that have no share capital and to corporations that are not companies, if the State, a government company or a government subsidiary controls or participates in them to the extent referred to in section 1(a) in relation to a government company or a government subsidiary, as the case may be, excluding bodies established by law.

Appointments in Corporations and Other Bodies Established by Law§

60a.
(a)Notwithstanding the provisions of section 60, the provisions of sections 16a, 17, 17a, 18a to 18c, 24(c) and (d), and 37(c) and (d) shall apply in relation to appointments to positions in corporations established by law and in other bodies established by legislation, with the necessary modifications as the matter requires and as detailed below, all where the appointment is made by a Minister or by the Government, or upon their recommendation or approval, and subject to the provisions of the law or legislation under which the corporation or body is established; where a law provides that representatives of bodies or organisations listed in that law are to be appointed to such corporations and bodies, the provisions of this Law shall not apply to such representatives.
(b)The modifications are as follows –
(1)wherever "director", "chairperson of the board of directors" or "general manager" appears, it shall be read as – "member of a council, member of an authority or member of a body performing a similar function even if its designation is different, chairperson of those bodies or general manager thereof, as the case may be";
(2)in section 18b(a), instead of "the Minister of Finance" it shall be read as "the Minister of Justice";
(3)in section 18b(b) in paragraphs (2) and (3), instead of "a public figure" and "a representative of the Authority" it shall be read as – "two public representatives to be determined by the chairperson of the Committee from a list of public figures determined by the Minister of Justice and the Minister of Finance, after consulting with the Council for Public Corporations, who fulfil all the eligibility conditions prescribed in this Law for the chairperson of the board of directors of a government company and who have no personal, business or political affiliation with any Minister of the Government";
(4)in section 18b(d)(3), instead of "the Committee shall transmit to the Ministers its opinion on a candidate" it shall be read, as the case may be, as "the Committee shall transmit its opinion to the person who recommends the candidates, or to the person who approves them, or to the person who appoints them";
(4a)in relation to eligibility to serve on the Electricity Authority, under the Electricity Sector Law, 5756-1996, instead of the provisions of section 16a the provisions of sections 22(b)(4) and (5) and 39 of that Law shall apply;
(4b)(Repealed)
(5)for the purposes of this section – "other bodies established by legislation" means bodies listed in the Second Schedule to this Law that are a body of persons designated in legislation as a council, authority council, directorate, managing committee or any other body whose functions are similar even if its designation is different, all where among its members are public representatives; the Minister of Justice may add other bodies established by legislation to the list of bodies enumerated in the Second Schedule, and with the approval of the Constitution, Law and Justice Committee of the Knesset may delete a body appearing in the Second Schedule.

Adequate Representation among Employees in Corporations Established by Law§

60b.
(a)Notwithstanding the provisions of section 60, the provisions of Chapter VI-A shall apply in relation to employees in corporations established by law, with the necessary modifications as the matter requires and as detailed below, all subject to the provisions of the law under which the corporation is established:
(1)in section 5a(b), instead of "the board of directors shall act" it shall be read as "a council of a corporation established by law shall act";
(2)in section 50b –
(a)in subsection (a), instead of "a government company shall submit to the Authority" it shall be read as "a council of a corporation established by law shall submit to the responsible Minister and to the Minister of Justice" and instead of "the company" it shall be read as "the corporation";
(b)in subsection (b), instead of "the Authority shall submit" it shall be read as "the Minister of Justice shall submit" and instead of "government companies" it shall be read as "corporations established by law".
(b)In this section –

"council" includes an authority or other body in a corporation established by law that performs a function similar to the function of a board of directors in a government company for the purposes of section 50a(b), even if its designation is different;

"the responsible Minister" means the Minister responsible for the corporation established by law or for the implementation of the law under which the corporation was established, as the case may be.

Application to Certain Bodies§

61.
(a)For the purposes of this Law, the following shall also be treated as a government company –
(1)the National Water Authority within the meaning of section 46 of the Water Law, 5719-1959;
(2)a company in which half of the voting power at its general meetings or the right to appoint half of the number of its directors is held by the State, and at least a quarter of the voting power or the right to appoint at least a quarter of the number of its directors is held by a local authority or by a company under its control.
(b)For the purpose of establishing a company of the kind referred to in subsection (a)(2), the proposal referred to in section 5(a) shall be submitted after consulting with the Minister of the Interior.

Non-Application to Agricultural Councils§

62.

This Law shall not apply to a company operating as a council for agricultural production or marketing.

Non-Application in Special Cases§

63.

The provisions of this Law, in whole or in part, shall not apply to –

(1)a company in respect of which the Government, with the approval of the Committee, has decided that reasons of State security or foreign relations require that they not be applied to it;
(1a)a company whose articles of association prohibit the distribution of profits to its shareholders, that was established to achieve public purposes in the field of welfare, culture, health or education, and all of whose activities are for the purpose of achieving those objectives, and in respect of which the Government, upon the proposal of the Authority and with the approval of the Committee, has decided that reasons connected to the nature of the company's activities require that they not be applied to it;
(2)a foreign company engaged in a type of activity in respect of which the Government, with the approval of the Committee, has decided that reasons as aforesaid require that they not be applied to companies engaged therein.
(3)a company in respect of which the Minister of Finance, with the approval of the Finance Committee of the Knesset, has decided that reasons of international trade relations justify that they not be applied to it.

Non-Application of Provisions Regarding Capital Raising§

63a.

The empowering provision in section 4(a) or the provisions of section 33(c) shall not apply to a company in respect of which the Government, with the approval of the Committee, has decided that reasons of public offering of shares require that they not be applied to it; in this section, "shares" means certificates issued by a company in series that confer membership or participation rights therein, or that confer the right to acquire shares as aforesaid.

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