High-profile case9/27/2026

High Court of Justice Overturned the Dismissal of the Chairman of the Israel Postal Company Board

The High Court of Justice unanimously overturned the decision by ministers David Amsalem and Shlomo Karhi to dismiss Mishal Vaknin, chairman of the Israel Postal Company board. The Court ruled that ministers may not terminate a director’s tenure solely at their discretion: one of the circumstances prescribed by law must exist for them to do so.

Key facts

•High Court of Justice decision: March 7, 2024
•Outcome: Mishal Vaknin’s dismissal was unanimously overturned
•Justice: David Mintz
•The case number is not specified in the source
•Dividends: approximately 2 billion shekels, of which approximately 85 million were transferred
•Michal Rosenboim’s resignation: December 30, 2023

The Dispute over the Israel Postal Company

David Amsalem is responsible for the Government Companies Authority, and Shlomo Karhi serves as minister of communications. They decided to dismiss Mishal Vaknin from his position as chairman of the Israel Postal Company board. On March 7, 2024, the High Court of Justice unanimously overturned the decision; the case number is not specified in the source.

Why the Court Overturned the Decision

Justice David Mintz clarified that the ministers’ powers are limited to the grounds prescribed by law. They may not dismiss a director of a government company solely at their discretion—one of the circumstances expressly prescribed by law must exist. The source does not specify the name of the particular statute or the full list of these circumstances.

The Confrontation at the Government Companies Authority

The decision came against the backdrop of a prolonged confrontation between Amsalem and Government Companies Authority Director Michal Rosenboim. On December 30, 2023, she resigned, claiming that she could not exercise her powers because of “the minister’s improper conduct.” Amsalem had previously said publicly that he recommends for positions people he knows and whom he considers suitable.

Dividends and Unfilled Positions

On November 9, 2023, State Comptroller Matanyahu Englman informed the government that, out of approximately 2 billion shekels in declared dividends from government companies, only approximately 85 million had been transferred to the state treasury. He also demanded the urgent appointment of boards of directors for several defense companies and the Israel Electric Corporation. In January 2024, an agreement was reached on transferring the dividends.

What this means for you

The decision confirms that the political echelon may not dismiss directors of government companies at its discretion. Terminating their tenure requires grounds prescribed by law, and the decision itself is subject to review by the High Court of Justice and may be overturned by it. For citizens, this means additional judicial protection for the professional management of companies that provide services of public importance.

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Case analysis based on court rulings