Amisragaz Sues to Block Rival's CEO Appointment

Amisragaz has filed a lawsuit with the Tel Aviv District Court seeking to prevent Menachem Carol from being appointed CEO of DorGas, a subsidiary of Dor-Alon Technologies Gas. Amisragaz claims this appointment violates a non-compete agreement Carol signed when he sold his company, Dogit, to Amisragaz in November 2023 for NIS 7.5 million.

Dogit had been an Amisragaz agent for marketing cooking gas in the Netanya and Hadera regions. The purchase agreement included a personal commitment from Carol to refrain from competition for four years within the area of Amisragaz's operations at the time of the sale. Amisragaz argues that this commitment should also encompass a senior management or director role in a competing entity, as it represents a direct means of participating in or influencing competition.

Amisragaz further stated that Carol provided a personal guarantee for Dogit's obligations, including the non-compete clause. The company learned that Carol is slated to become CEO of DorGas, a direct competitor operating in the same field and region. Amisragaz also alleges that Carol has been proactively contacting its employees, despite his non-solicitation commitment.

Lawyers for Carol responded that Amisragaz breached the agreement first by reducing his monthly salary from NIS 49,000 gross to NIS 25,000 shortly after the acquisition. Carol reportedly refused the reduced salary and was dismissed two days later.

DorGas's legal representatives countered that Carol's role as CEO, rather than a sales position, does not constitute a breach of the non-compete clause. They also assured that DorGas would not utilize any confidential information Carol may possess.