(a)The Director may recognise a company as the body responsible for the fulfilment of the obligations of manufacturers or importers under this Law who enter into a contract with it, if all of the following conditions are satisfied:
(1)it is a company as defined in the Companies Law, 5759-1999;
(2)its sole purpose is the fulfilment of the obligations of manufacturers or importers under this Law and the carrying out of the actions required for that purpose;
(3)if it was incorporated for profit-making purposes — its articles of association restrict the possibility of distributing profits if it has not met the recycling targets of the manufacturers or importers whose obligations it is responsible for performing, or if the provisions of section 21(f)(1) have not been complied with; notwithstanding the provisions of this paragraph, during a period of three years from the commencement date of this Law, the Director may recognise only a public benefit company as defined in the Companies Law, 5759-1999; the Minister may, by Order, shorten the said period or extend it by periods of one year at a time, provided that the total of the extension periods does not exceed two consecutive years;
(4)it has presented a business plan to the Director's satisfaction, pursuant to which, shortly after the date of recognition, it will provide services to manufacturers and importers whose packaging material weight produced or imported will not be less than 10 per cent of the total weight of packaging material produced or imported by all manufacturers and importers to whom the provisions of Chapter III of the Law apply, and within three years of the date of recognition it will provide services to manufacturers and importers whose packaging material weight produced or imported will not be less than 25 per cent of the said total (hereinafter — the rate of service scope for the purposes of recognition);
(5)it has undertaken to provide services to manufacturers and importers who enter into a contract with it, in accordance with the provisions of sections 9(a) and 16(a), in respect of all packaging waste from packaged products or from service packaging, as the case may be, produced or imported by each manufacturer or importer who enters into a contract with it as aforesaid;
(6)it has sufficient equity capital, to the Director's satisfaction, and has furnished securities to ensure its compliance with the purpose referred to in paragraph (2);
(7)the general manager of the company and a controlling shareholder thereof have not been convicted of an offence which, by reason of its nature, gravity or circumstances, renders the company unfit to be a recognised body; for this purpose, "control" — as defined in the Securities Law, 5728-1968;
(8)additional conditions as the Minister may prescribe.
(b)The Director may refuse to grant recognition to an applicant, stating reasons to the applicant and after giving the applicant an opportunity to present arguments, even if the conditions set out in subsection (a) are satisfied in respect of the applicant, if the Director has found that circumstances exist by reason of which the applicant is not fit to receive recognition, or if the Director is satisfied that there is a real concern that granting recognition to the applicant would prejudice the implementation of the purposes of this Law, having regard, inter alia, to the following:
(1)the number of recognised bodies operating in Israel;
(2)the share of manufacturers or importers associated with recognised bodies in the production or importation of the type of packaging material produced or imported by all manufacturers and importers to whom the provisions of Chapter III of the Law apply (in this subsection — the share in the production or importation of the total type of packaging material);
(3)the type of packaging that manufacturers or importers referred to in paragraph (2) produce or import;
(4)the number of manufacturers or importers who will enter into a contract with the applicant, their share in the production or importation of the total type of packaging material, or the type of packaging that they produce or import.
(c)Notwithstanding the provisions of subsection (a)(4) and (5), the Director may recognise a company as the body responsible for the fulfilment of the obligations of manufacturers or importers under this Law who enter into a contract with it, even if its rate of service scope for the purposes of recognition is lower than the rate referred to in subsection (a)(4), if the Director is satisfied that exceptional circumstances exist by reason of which it is appropriate for the company to be responsible for the fulfilment of the obligations of manufacturers or importers as aforesaid with respect to packaging waste of a particular type or particular types only; recognition as aforesaid shall be effected in a manner that does not prejudice the economic viability of the company or the attainment of the recycling targets for all packaging waste.
(d)In order to ensure the recognised body's compliance with the purpose referred to in subsection (a)(2), the Director may prescribe conditions in the recognition that are to be fulfilled during the whole or part of the period of validity of the recognition, including conditions concerning public awareness activities to promote the purposes of the Law, and the Director may amend those conditions, after giving the recognised body an opportunity to present arguments.
(e)Recognition shall be granted for a period of five years (in this Chapter — the recognition period).
(f)The articles of association of the recognised body and any amendment thereto require the approval of the Director.
(g)The Director shall publish in Reshumot (Official Gazette) and on the Ministry's website a notice of the recognition of a company as a recognised body and of the date of recognition.