The Enforcement and Control Unit of the Corporations Authority of the Ministry of Justice filed an application today (Monday) for a liquidation order against Maccabi Bnei Reina – which owns the Maccabi Bnei Reina Group – due to serious deficiencies in the association, including prohibited profit sharing and fear of promoting foreign goals.
The Supervision Results Report published on February 15, 2, determined that substantial deficiencies were found in the organization's conduct, which constitute grounds for liquidation in accordance with section 2023 of the Associations Law, and therefore the association's file was transferred for further handling by the Enforcement and Control Unit of the Corporations Authority, which today filed a request for a liquidation order against the association to the Nazareth District Court
It should be noted that the enforcement proceedings carried out by the Enforcement and Control Unit of the Corporations Authority of the Ministry of Justice are intended to ensure that associations and public benefit companies found to have serious violations in their conduct, including non-fulfillment of goals, use of the organization's funds and assets only for the purpose of advancing its goals and not for foreign purposes or prohibited profit sharing, and smuggling assets into private hands, will be transferred to liquidation proceedings under court supervision.
The report of the results of an examination conducted by the Registrar of Non-Profits Unit in the case of Maccabi Bnei Reina – the Association for the Advancement of Sports and Youth in Reina determines, inter alia, that as a result of the supervision process, serious and substantial flaws were found in the organization's conduct, which create a substantial concern of prohibited profit sharing and that the organization's assets were smuggled into private hands and used to promote foreign purposes.
The report also pointed out that an in-depth examination of the organization's financial conduct reveals a systematic pattern, which continued throughout the years of supervision (2017-2020), of transferring the organization's funds to third parties and committee members, in violation of the law, without a proper control route, and without the organization being able to prove that these funds were indeed used to promote its approved goals.
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Adv. Shuli Avni Shoham, Registrar of Non-Profit Organizations and Head of the Corporations Authority: "The findings of the report raise serious concern about systematic, improper conduct that prevents a clear control path of the association's income and expenses, in a manner that raises concerns about the use of the association's assets for foreign purposes while sharing profits is prohibited. Nonprofits that conduct themselves contrary to the provisions of the law damage the image of all nonprofits in Israel and lead to severe damage to the public's trust in these organizations. We will use all the tools at our disposal in service, supervision and enforcement to eradicate such conduct and increase public trust in the third sector."
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