Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 220

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 220
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 Shares are Registered for Trading Outside of Israel) – 2000 (the “Relief Regulations”), an Israeli public company whose shares are dual listed on the TASE and certain foreign (non-Israeli) stock exchanges, including the NASDAQ Global Select Market, or are listed solely on a foreign (non-Israeli) securities exchange, may elect to exempt itself from the Companies Law requirement to appoint external directors and related rules concerning the composition of the audit committee and compensation committee of the board of directors if it meets both of the following conditions:

•   The company does not have a controlling shareholder; and
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•     The company complies with the requirements of the securities laws and stock exchange regulations in the foreign jurisdiction where  
    its shares are listed relating to the appointment of independent directors and composition of the audit and compensation committees as
                          applicable to companies that are incorporated under the laws of such foreign jurisdiction.                      
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In accordance with the Relief Regulations, we elected to “opt out” from the Companies Law requirement to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee of the board of directors.
 

 Director Independence
 
In accordance with the exemption from the Israeli law requirement to have external directors serving on our Board of Directors, we comply with the director independence requirements and the audit committee and compensation committee composition requirements under U.S. laws (including applicable Nasdaq Stock Market rules) applicable to U.S. domestic issuers. In addition, the composition of our corporate governance and nominating committee complies with the requirements of the Nasdaq Listing Rules applicable to U.S. domestic issuers. Under the Nasdaq Listing Rules, a majority of the board of directors must be comprised of independent directors (as defined in the Nasdaq Listing Rules). Our board of directors has made a determination of independence under the Nasdaq Listing Rules with respect to all directors, other than Mr. Ellwanger, our Chief Executive Officer.
Audit Committee
 
Our audit committee currently consists of Mr. Yoav Z. Chelouche, Mr. Ilan Flato, Mr. Avi Hasson, Mrs. Iris Avner and Mr. Sagi Ben Moshe. Mr. Yoav Z. Chelouche serves as the audit committee chairman.
 
Composition requirements
 
The Companies Law requires public companies to appoint an audit committee; however, following the Company’s determination to follow the relief with respect to external directors under the Relief Regulations, as described above, the composition of our audit committee is governed by the rules set