NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS 

TO BE HELD ON MAY 21, 2018

 

Formula Systems (1985) Ltd. Shareholders:

We cordially invite you to attend the Annual General Meeting of Shareholders, or the Meeting, of Formula Systems (1985) Ltd., or the Company, to be held at 2:00 p.m. (Israel time) on Monday, May 21, 2018 at our offices at 5 HaPlada Street, Or Yehuda 6021805, Israel, for the following purposes:

1. To re-elect Mr. Marek Panek to our Company’s Board of Directors, to hold office until our next annual general meeting of shareholders and until his successor is duly elected;
2. To re-elect Mr. Rafal Kozlowski to our Company’s Board of Directors, to hold office until our next annual general meeting of shareholders and until his successor is duly elected;
3. To re-elect Ms. Dafna Cohen to our Company’s Board of Directors, to hold office until our next annual general meeting of shareholders and until her successor is duly elected;
4. To approve the renewal of our directors’ and officers’ insurance policy;
5. To ratify the re-appointment of Kost Forer Gabbay & Kasierer, registered public accounting firm, a member firm of EY Global, as our independent registered public accounting firm for the year ended December 31, 2017, and to ratify such accounting firm’s annual compensation for the year ended December 31, 2017; and
6. To approve the re-appointment of Kost Forer Gabbay & Kasierer, registered public accounting firm, a member firm of EY Global, as our independent registered public accounting firm for the year ending December 31, 2018 and until our next annual general meeting of shareholders, and to authorize our Company’s Board of Directors and/or its Audit Committee to fix such accounting firm’s annual compensation.

In addition, at the Meeting, members of our management will be available to review and discuss our auditor’s report and consolidated financial statements for the year ended December 31, 2017.

Our Board of Directors recommends that you vote in favor of the above proposals, which are described in the proxy statement attached to this notice.  The proxy statement and a related proxy card are being furnished to the Securities and Exchange Commission, or SEC, in a report of foreign private issuer on Form 6-K, which may be obtained for free from the SEC’s website at www.sec.gov or at the Company’s website— at http://www.formulasystems.com. The full text of the proposed resolutions, together with the form of proxy card for the Meeting, may also be viewed beginning on Sunday, April 15, 2018, at the registered office of the Company, 5 HaPlada Street, Or Yehuda 6021805, Israel, from Sunday to Thursday, 10:00 a.m. to 3:00 p.m. (Israel time).  Our telephone number at our registered office is +972-3-538-9487.  Holders of record of our ordinary shares (including ordinary shares represented by American Depositary Shares, or ADSs) at the close of business on Monday, April 16, 2018 are entitled to vote at the Meeting.  All shareholders are cordially invited to attend the Meeting in person.

If voting by mail, the proxy must be received at our registered office at least six (6) hours prior to the appointed time of the Meeting to be validly included in the tally of ordinary shares voted at the Meeting.  Your proxy, if properly executed, will be voted in the manner directed by you. If no direction is made, your proxy will be voted “FOR” each of the proposals described above. If you attend the Meeting, you may vote in person and your proxy will not be used.  Detailed proxy voting instructions are provided both in the proxy statement and on the proxy card. 

Beneficial owners who hold ordinary shares through members of the Tel Aviv Stock Exchange, or the TASE, may vote their shares in person at the Meeting, by presenting a certificate signed by the TASE Clearing House member through which the shares are held, which complies with the Israel Companies Regulations (Proof of Ownership for Voting in General Meetings)-2000 as proof of ownership of the shares, or they may send such certificate, along with a duly executed proxy (in the form filed by us on MAGNA, the distribution site of the Israeli Securities Authority, at www.magna.isa.gov.il), to the Company at 5 HaPlada Street, Or Yehuda, 6021805, Israel, Attention: Chief Financial Officer.  Alternatively, shares held through a member of the TASE may be voted by means of an electronic vote, through the electronic voting system of the Israel Securities Authority (votes.isa.gov.il), subject to proof of ownership of the shares on the record date, as required by law.  Voting through the electronic voting system will be allowed until 8:00 a.m., Israel time, on Monday, May 21, 2018 (that is six (6) hours before the Meeting).  You may receive guidance on the use of the electronic voting system from the TASE member through which you hold your shares.

If your shares are represented by American Depositary Shares, or ADSs, you should complete the voting instruction form to direct the depositary for the ADSs, BNY Mellon, to vote the number of shares represented by your ADSs in accordance with the instructions that you provide. If your ADSs are held in “street name”, through a bank, broker or other nominee, you should follow the instructions in the proxy statement as to how direct such bank, broker or other nominee to arrange for the depositary to vote the ordinary shares represented by your ADSs in accordance with your voting instructions.

In accordance with the Israeli Companies Law, 5759-1999 and regulations promulgated thereunder, any shareholder of the Company may submit to the Company a position statement on its behalf, expressing its position on an agenda item for the Meeting to the Company’s offices, at 5 HaPlada Street, Or Yehuda, 6021805, Israel, Attention: Chief Financial Officer, email: [email protected] no later than May 11, 2018.  Any position statement received will be furnished to the SEC on Form 6-K, and will be made available to the public on the SEC’s website at http://www.sec.gov.

 

Sincerely,

Guy Bernstein

Chief Executive Officer