RegulationsAdministrative Law
Insolvency and Economic Rehabilitation Regulations (Rules concerning the Compilation of a Trustee List), 5781-2021
תקנות חדלות פירעון ושיקום כלכלי (כללים לעניין גיבוש רשימת נאמנים), תשפ"א-2021
Published: 2021-01-04Consolidated Hebrew text as of 2026-02-25 · Last amended 2021-03-24
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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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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.
Section B: Professional Examination
Professional Examination§
19.
(a)Once every two years, at least 45 days after the publication of the invitation to submit candidacy for a district trustee list for individuals or for a district trustee list for corporations pursuant to regulation 22, a public committee shall conduct a professional examination on the following subjects: legislation and case law relating to insolvency proceedings, the Commissioner's procedures, the function of the trustee, their work and their conduct; the examination shall be conducted in writing and the passing score therein shall be 70; the public committee shall publish, on the Commissioner's website, details concerning the examination, including its location and date and the manner of registration for the examination, at least 45 days before the examination.
(b)Any person who has submitted a declaration stating that they meet the eligibility conditions prescribed in Sections 37(b) and 126(b) of the Law, or that they are expected to meet them within two years of the date of the examination, is entitled to sit the examination.
Appeal§
20.
(a)An examinee is entitled to appeal against a score received in an examination; the appeal shall be submitted to the public committee in writing, with reasons stated.
(b)An examinee who wishes to appeal against a score received is entitled to request to inspect the examination booklet that is the subject of the appeal within 7 days of the date of publication of the scores, and shall inspect it in the manner directed by the Commissioner; where an examinee has requested to inspect the booklet as aforesaid, they are entitled to appeal against the score within 14 days of the date of publication of the scores or within 7 days of the date on which the opportunity to inspect was afforded to them – whichever is the later.
(c)The public committee shall deliver to the appellant a decision on the appeal within 30 days of the last day for its submission.
(d)Where the public committee has decided, within the framework of an appeal that has been submitted, to change the solution of the examination, the public committee shall change accordingly the score of the other examinees as well, even if they did not submit an appeal.
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Contact Us →Chapter V: Procedure for the Compilation of a Trustee List and a Trustee Reserve
Section A: Submission of Candidacy for Inclusion in a Trustee List
Date of Compilation of a Central Trustee List§
21.
A public committee shall commence the primary compilation procedure in the second quarter of the year in which the validity of the trustee list expires as referred to in regulation 12.
Publication of an Invitation to Submit Candidacy§
22.
(a)Once every two years, in the second quarter of the year in which a primary compilation procedure takes place and in the third quarter of the year in which a secondary compilation procedure takes place, a public committee shall publish an invitation to submit candidacy; the invitation shall be published on the Commissioner's website.
(b)An invitation to submit candidacy shall include the following particulars in respect of each trustee list separately:
(1)the trustee list to which the invitation to trustees relates, and whether it concerns a primary compilation procedure or a secondary compilation procedure;
(2)in respect of a district trustee list for individuals or a district trustee list for corporations – the number of trustees to be included in the trustee list and the number of candidates to be invited to a personal interview who were not among the trustee list that preceded the list being compiled;
(3)the determining date for the submission of candidacy;
(4)the information to be included in an application pursuant to regulation 23;
(5)details of the forthcoming examination and a clarification that a person who has already passed the examination is not required to sit it again.
Submission of Candidacy§
23.
A person wishing to submit their candidacy for inclusion in a trustee list shall submit an application to that effect to a public committee, by means of the Commissioner's website, by the determining date for the submission of candidacy published in the invitation to submit candidacy pursuant to regulation 22; an application as aforesaid shall include the following particulars:
(1)personal details of the candidate;
(2)details concerning the office infrastructure and the location of the candidate's office;
(3)details concerning the education and professional training of the candidate and participation in professional development courses;
(4)details concerning the seniority and professional experience of the candidate in the field of insolvency and the insolvency proceedings in which the candidate was involved;
(5)documents, references, recommendations and affidavits attesting to the information set out in paragraphs (1) to (4), including pleadings submitted by the candidate and the like;
(6)in respect of the submission of candidacy for a district trustee list for individuals or a district trustee list for corporations by a person who is required to sit a professional examination – confirmation that the candidate passed the professional examination, specifying the date of the examination and the score, or confirmation of registration for the forthcoming professional examination by the date published in the invitation to submit candidacy.
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Contact Us →Section B: Evaluation of Candidates
Invitation to a Personal Interview§
24.
(a)Promptly after the determining date for the submission of candidacy, a public committee shall examine whether a candidate meets the eligibility conditions set out in Sections 37(b) and 126(b) of the Law and in Section A of Chapter IV of these Regulations; the public committee shall also examine whether a bar as referred to in regulation 18 applies to the candidate; if the public committee finds that the eligibility conditions are met in respect of a candidate and that no bar applies to the candidate, it shall act as set out below:
(1)in respect of a district trustee list for individuals or a district trustee list for corporations – the public committee shall invite to a personal interview all trustees who are on that district trustee list on the determining date for the submission of candidacy, as well as the number of candidates referred to in regulation 22(b)(2) who passed the examination with the highest score;
(2)in respect of an operating trustee list, a joint operating trustee list and a trustee list for complex proceedings – the public committee shall invite to a personal interview all trustees who are on that trustee list on the determining date for the submission of candidacy, as well as every candidate who meets the threshold conditions;
(3)the public committee shall send a notice to every candidate who is found not to be entitled to be invited to a personal interview, stating the reason for not being invited.
(b)Notwithstanding the provisions of sub-regulation (a)(1), if several candidates received an identical score in the examination and that score is identical to the lowest score of a candidate invited to a personal interview, they shall also be invited to a personal interview, even if their invitation results in a deviation from the number of invitees decided upon in advance as aforesaid.
(c)The public committee shall attach to the invitation to a personal interview a copy of the opinion compiled pursuant to regulation 25, if one was compiled.
(d)Notwithstanding the provisions of sub-regulation (a), opening words, and paragraph (1) of that sub-regulation, the date for examining compliance with the professional examination requirement in respect of a candidate who submitted confirmation of registration for the professional examination being held during that trustee list compilation procedure shall be after the delivery of the examination results or the delivery of the decision on objections in respect of that examination, if any were submitted.
Opinion of the Commissioner and the Director of the Enforcement and Collection System§
25.
(a)If the candidate was previously on a trustee list, the Commissioner shall present this information before the public committee and shall attach a Commissioner's opinion compiled pursuant to this regulation, as well as an opinion of the Director of the Enforcement and Collection System, as the case may be.
(b)In the Commissioner's or the Director of the Enforcement and Collection System's opinion, as the case may be, expression shall be given to the following matters, and the Commissioner or Director may attach documents and references if deemed appropriate:
(1)the Commissioner's or Director's position regarding the candidate's report on seniority and professional experience presented by the candidate within the framework of the candidate's application pursuant to regulation 23(4);
(2)the level of the candidate's professional functioning throughout the period during which the candidate was included in a trustee list, including the scope and complexity of the proceedings managed; co-operation with the Commissioner, including reports and compliance with deadlines, as well as participation in the Commissioner's training programmes; the office infrastructure available to the candidate for managing insolvency proceedings and the candidate's contribution to the success of the proceedings managed;
(3)in respect of a candidate for a district trustee list for individuals – accessibility and geographical proximity to the district for which candidacy was submitted;
(4)in respect of a candidate for a trustee list for complex proceedings – the candidate's ability to manage a complex proceeding.
Personal Interview§
26.
(a)The personal interview shall be conducted before members of the public committee, provided that the quorum of members of the committee before whom the interview is conducted shall not be fewer than three, at least one of whom shall be the Commissioner or the Commissioner's representative.
(b)During the personal interview, the interviewing members of the public committee shall assess the suitability of the candidate for the trustee list for which the candidate submitted their candidacy; in this framework they shall consider, inter alia, the following matters: professional level; manner of conduct, integrity and reliability; the opinion submitted pursuant to regulation 25; the office infrastructure available to the candidate for the purposes of managing insolvency proceedings; and the need to provide a response tailored to different population groups, including a response in different languages; in respect of a candidate for a trustee list for complex insolvency proceedings, the public committee shall consider, inter alia, the candidate's ability to manage a complex proceeding.
Calculation of the Weighted Score§
27.
(a)The public committee shall calculate the weighted score for all candidates for a district trustee list for individuals and for a district trustee list for corporations; the weighted score shall be composed of the score components detailed below:
(1)the professional examination score, if any;
(2)the public committee's impression from the personal interview;
(3)the information arising from the candidacy application and additional relevant information, if the Commissioner presented it to the public committee.
(b)The public committee shall disclose its position regarding the manner of calculating the weighted score pursuant to this regulation on the Commissioner's website.
Ranking of Candidates§
28.
(a)Upon the conclusion of the personal interviews, a public committee shall calculate the weighted score for each of the candidates for a district trustee list for individuals and for a district trustee list for corporations who appeared before it; in a primary compilation procedure, the candidates with the highest weighted score shall be included in the trustee list in each district, provided that the proportion of trustees on the list who were not among the trustee list that preceded the list being compiled shall not be less than 15% of the list (hereinafter – new trustees), and in a secondary compilation procedure, they shall be included in the trustee reserve for the list, and their position therein shall be in accordance with their weighted score relative to all those on it.
(b)Notwithstanding the provisions of sub-regulation (a), candidates who were included in an operating trustee list and who were ranked by the committee with the highest scores based on the personal interview may be included in a district trustee list for corporations, provided that the proportion of such trustees shall not exceed 25% of the number of trustees who will be on that district list, and they shall not be considered new trustees.
(c)Candidates whom the public committee decided had successfully passed the personal interview for an operating trustee list or for a joint operating trustee list shall be included in the operating trustee list or the joint operating trustee list, as the case may be; if a trustee requested to also be included in a district trustee list for corporations, the committee shall rank the trustee for that purpose; candidates whom the public committee decided had successfully passed the personal interview for the trustee list for complex proceedings shall be included in the trustee list for complex proceedings and also in the operating trustee list.
(d)A public committee shall send candidates a notice of their inclusion in a trustee list or a trustee reserve, and shall also send an appropriate notice to candidates who were not included in a trustee list or a trustee reserve.
Publication of a Trustee List§
29.
(a)A public committee shall publish the trustee list and the trustee reserve and any change that occurs therein on the Commissioner's website.
(b)A public committee shall update the trustee list and any change that occurs therein as soon as practicable after the decision is made.
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Contact Us →Chapter VI: Re-examination, Removal from a Trustee List and Transfers between Lists
Transfer between District Lists§
30.
A trustee who is included in a district trustee list for individuals or in a district trustee list for corporations, and during the period of validity of a trustee list a change of circumstances occurs that justifies the trustee's inclusion in a district trustee list for individuals or a district trustee list for corporations of the same type in another district, may submit an application to that effect to a public committee; the public committee may include the trustee, upon the trustee's application, in a district trustee list for individuals or a district trustee list for corporations of the same type in another district, in accordance with the needs of the system.
Invitation of a Trustee to an Interview§
31.
During the period between the publication of the invitation to submit candidacy and 30 days after the determining date for the submission of candidacy in the course of a secondary compilation procedure, the public committee may, at its discretion, invite a trustee to a personal interview in light of the trustee's performance during the period of the trustee's membership on the list, for the purpose of making a decision regarding the continuation of the trustee's inclusion in the trustee list until the end of the period of validity thereof; the public committee shall notify the trustee a reasonable time before the trustee is invited to an interview as aforesaid.
Removal from a Trustee List, Suspension for a Period and Freezing§
32.
(a)A person who is included in the trustee list and who ceases to meet one of the eligibility conditions or threshold conditions required for inclusion in the trustee list shall immediately notify the Commissioner thereof, in writing; having done so, the Commissioner shall remove the person's name from the trustee list and shall notify a public committee thereof in writing.
(b)If a member of a public committee is of the opinion that there is a concern that a trustee has ceased to meet one of the eligibility conditions or that a bar from among the bars to inclusion in the trustee list applies to the trustee, the member shall apply to the public committee with a request for the trustee's removal from the trustee list.
(c)If the Commissioner is of the opinion that a trustee is not properly fulfilling the trustee's role, the Commissioner, or a person authorised by the Commissioner for that purpose, may apply to the public committee with a request to deliberate on the possibility of removing or suspending the trustee for a period from the trustee list; if the Director of the Enforcement and Collection System is of the opinion that a trustee is not properly fulfilling the trustee's role in relation to insolvency proceedings conducted in the Enforcement and Collection System, the Director, or a person authorised by the Director for that purpose, may apply to the public committee with a request to deliberate on the possibility of removing or suspending the trustee for a period from the trustee list; if a member of a public committee is of the opinion that a trustee is not properly fulfilling the trustee's role, the member may apply to the Commissioner with a request to examine the trustee's performance.
(d)If a trustee has refused appointment in insolvency proceedings four times within a year, the Commissioner or the Director of the Enforcement and Collection System may bring the matter before a public committee with a request to deliberate on the possibility of removing or suspending the trustee for a period from the trustee list.
(e)If a trustee applied to the Commissioner with a request to temporarily freeze the trustee's inclusion in the trustee list, the Commissioner shall freeze the trustee's inclusion in the list for the period requested by the trustee; if the Commissioner is of the opinion that the trustee's inclusion in the list should be frozen for a period different from the period requested, the Commissioner shall refer the trustee's application to the committee together with the Commissioner's recommendation as to the period of freezing; the committee may temporarily freeze the trustee's inclusion in the list for a period it shall determine, provided that before making the decision it shall give the trustee an opportunity to present arguments.
(f)Before making a decision pursuant to sub-regulations (b) to (d), the public committee shall give the trustee an opportunity to present arguments.
(g)If a trustee is removed from a trustee list or suspended therefrom for a period pursuant to this regulation, the Commissioner shall notify the court before which a proceeding is pending in which the trustee was appointed, and the Director of the Enforcement and Collection System shall notify the Enforcement and Collection Registrar before whom the proceeding in which the trustee was appointed is pending.
Re-examination§
33.
Upon the application of a candidate, the public committee may re-examine its decision to remove a candidate from a trustee list if the circumstances have changed or new facts have come to light that are capable of affecting the making of the decision.
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