Court Orders Aksilion to Hold Special Meeting to Oust Board Amid Governance Crisis
Tel Aviv District Court ordered Aksilion Smart Transport to convene a special shareholders meeting to oust its board, dealing a blow to CEO Harel Hershtik amid corporate governance concerns.
Shareholders of the public company Aksilion Smart Transport have triumphed over Harel Hershtik as the Tel Aviv District Court ordered the company to convene a special general meeting to vote on ousting the current board of directors. District Court Judge Sigal Yakobi ruled that Aksilion must publish the meeting notice within two business days, with the assembly taking place seven days later. The agenda will include terminating all incumbent directors—excluding external directors—and appointing new ones in their place, alongside appointing the accounting firm Steinmetz Aminoach & Co. as the company's auditor.
The court battle stems from an internal power struggle within Aksilion, a company currently suspended from trading due to delayed financial reports. Hershtik serves as Aksilion's CEO and driving force, and also heads the public company Next Gen. Retired Maj. Gen. and former National Security Council head Yaakov Amidror serves on Aksilion's board and chairs Next Gen, while Yehoshua Rosenzweig acts as Aksilion's chairman. Hershtik was convicted in his youth of murdering snake hunter Yaakov Sela, serving a 25-year prison sentence before being released on license with various restrictions in 2021. Hershtik and Amidror led a group that took control of Aksilion in October 2025.
In recent months, however, the company has reported a series of troubling developments, including the departure of its CFO who raised governance concerns, the resignation of its auditing accounting firm, and a delay by Hershtik in transferring 400,000 shekels for a share allocation. Citing these issues, shareholders Yehuda Shenhav and Shuki Mizrahi demanded a special meeting in September to replace the board with their own nominees: Yigal Petran, Yair Zinger, and Yuval Celner. Hershtik's management rejected the demand, claiming procedural flaws, hidden shareholder identities, and exceeding meeting authorities, prompting the shareholders to petition the court.
Judge Yakobi rejected the company's arguments, ruling that the board has a mandatory duty to convene a general meeting upon a valid request and holds no substantive discretion to refuse. She noted that the requesting shareholders hold a stake significantly exceeding the legal threshold, rendering refusal unlawful. The judge also granted the request to shorten deadlines due to Aksilion's precarious situation, noting it has failed to publish its 2025 financial reports and early 2026 reports, and has lacked an auditor since September. Aksilion was ordered to pay 15,000 shekels in legal costs, with the directors personally required to reimburse the company's treasury. Hershtik stated that the company received the ruling and is reviewing its next steps.
