Movement for Quality Government: “The ruling makes clear that a vital defense company cannot be left in managerial paralysis due to political infighting.”
The Supreme Court today accepted the petition filed by the Movement for Quality Government and issued an order nisi instructing the government to explain why it has not acted to appoint a Chairperson of the Board of Directors of Israel Aerospace Industries and to complete the appointment process as soon as possible. The High Court of Justice ordered the respondents to submit an affidavit in response by March 15, 2026.
In its decision, issued by Justice Daphne Barak-Erez, Justice Yael Wilner, and Justice Yehiel Kasher, the Court explicitly referred to “the period of time that has elapsed since the end of the term of the Chairperson of the Board of Directors of Israel Aerospace Industries Ltd., in November 2024,” as well as the fact that “throughout this extended period, the process of appointing a new chairperson has not been completed.”
The petition was filed in August 2025 by Attorneys Tomer Naor, Talila Dvir, and Ori Hess on behalf of the Movement for Quality Government. It argued that the failure of Minister of Defense Israel Katz and Minister for Regional Cooperation, and Minister in charge of the Government Companies Authority, Dudi Amsalem, to appoint a chairperson has led to partial paralysis in the functioning of IAI’s board and has harmed its ongoing operations.
The petition stated that “the public dispute between the ministers over the appointment of the IAI chairperson reflects the severe deterioration in the phenomenon of political appointments in Israel, from a practice once carried out behind closed doors to one now conducted openly, in blatant violation of the principle of equality, the professionalism of civic service, and the independence of managing authorities.”
It further argued that the ministers “have chosen to refrain from fulfilling their public duty, acted beyond their authority, and in breach of the administrative obligations that bind them, while considering improper considerations and violating their duty of loyalty to the public.”
The Movement emphasized that the Chairperson of IAI’s Board of Directors plays a central role in shaping company policy, adopting and implementing decisions, and overseeing management. The absence of a chairperson may impair the company’s ability to operate in full coordination with the state, delay substantive decisions, and undermine the managerial continuity required for defense production and development.
The petition also noted that, in addition to the crisis regarding the appointment of a chairperson, the ministers have failed to appoint external directors to replace those whose terms have expired. As a result, the company’s board has been depleted, raising serious concerns about IAI’s ability to approve its financial statements.
Adv. Tomer Naor, VP of Legal Affairs at the Movement for Quality Government: “The Supreme Court’s ruling makes clear that a vital defense company cannot be left in managerial paralysis due to political infighting between ministers. Israel Aerospace Industries, which employs 16,000 people and serves as a cornerstone of Israel’s defense establishment, is entitled to professional and stable management. The government must stop the political games and appoint a chairperson immediately. The price of this crisis is being paid by the public, the economy, and the security of the state.”
