The owner of an entrepreneurial company that had received assistance from the Israel Investment Center in the guarantees track asked, for various reasons, for there to be no hint of him being the owner.
Accordingly, a legal structure of multiple companies was formed, the vicious circle being broken through a director as a trustee of the owns, whereas the actual owner officially served as the CEO of the entrepreneurial company alone.
At the same time, the Investment Center’s assistance track did not mandate revealing the identity of the owner. However, the Investment Center saw fit, due to the guarantees to a tune of millions of dollars, to perform a due diligence process, including asking to meet the owner.
A meeting was arranged between the CEO and the entrepreneurship company and the proxy of the owner was arranged. In that meeting it was agreed that the attorney and proxy confirmed to the Investment Center that the owner was a legitimate Israeli citizen, and should there be a change or should he cease to be the company’s attorney, he would announce that to the Investment Center. The due diligence ended at that point, the guarantees were approved, and the CEO remained under the identity of a CEO only as far as the Investment Center was concerned.