Last week, the Supreme Court rejected the appeals of former officers of the 'Etz Chaim' association and upheld the District Court's ruling, which ruled that the appellants must return funds to the liquidation fund.
This concerns the rejection of an appeal filed by three former officers of the 'Talmud Torah Clali and Yeshiva HaGedola Etz Chaim' association, against the ruling of the Jerusalem District Court.
The court ruled that the appellants, who served as officers of the association and as trustees of the Wolf Endowment - of which the association is the sole beneficiary - were not entitled to receive salary or any other receipt from the association and the endowment.
Want more news, videos and stories? Join the Haredim 10 WhatsApp channel >>
The Supreme Court rejected the appellants' claims that their wages were paid to them for work they performed at another corporation: Neve Simcha Company.
The Supreme Court accepted the arguments of the Registrar of Associations and Endowments that receiving funds through this company, which is owned by the endowment, was intended to circumvent the prohibition that applies to office holders in the association from receiving salaries, and therefore this is a prohibited distribution, both under the Associations Law and the Trust Law.
In the ruling, the Supreme Court accepted the position of the Registrar of Nonprofit Organizations and the Special Administrator, who determined that the officers must return an amount of approximately 4 million shekels to the nonprofit's liquidation fund.
