(a)The Administrator 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 met:
(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 performance of the actions required for that purpose;
(3)if it was incorporated for profit-making purposes — its articles 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 date of commencement of this Law, the Administrator 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 satisfaction of the Administrator, under which, close to 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 percent 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 percent of the said total (hereinafter — the service scope rate 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 the packaged products or from the 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 shareholders' equity, to the satisfaction of the Administrator, and has furnished securities to ensure compliance with the purpose referred to in paragraph (2);
(7)the chief executive officer of the company and a controlling shareholder therein 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 determined by the Minister.
(b)The Administrator may refuse to grant recognition to an applicant, stating reasons to be communicated to the applicant and after having given the applicant an opportunity to state arguments, even if the conditions set out in subsection (a) are met in respect of the applicant, if the Administrator finds that there are circumstances by reason of which the applicant is not fit to receive recognition, or if the Administrator is satisfied that there is a substantial concern that granting recognition to the applicant will 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 connected 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 of each 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 of each 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 Administrator 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 service scope rate for the purposes of recognition is lower than the rate referred to in subsection (a)(4), if the Administrator is satisfied that exceptional circumstances exist by reason of which it is appropriate that the company be responsible for the fulfilment of the obligations of manufacturers or importers as aforesaid with regard to packaging waste of a particular type or particular types only; recognition as aforesaid shall be given 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 compliance by the recognised body with the purpose referred to in subsection (a)(2), the Administrator may prescribe in the recognition conditions to be fulfilled during the whole or part of the period of validity of the recognition, including conditions relating to public awareness activities for the promotion of the purposes of the Law, and may amend such conditions, after having given the recognised body an opportunity to state 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 Administrator.
(g)The Administrator shall publish in Reshumot (Official Gazette) and on the website of the Ministry a notice of the recognition of a company as a recognised body and of the date of recognition.