Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 192

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 192
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 the date our
board of directors approved their respective Minimum Holding to attain said Minimum Holding. During such period and until they
accumulate the applicable Minimum Holding, he/she must retain at least 20% of the shares issued upon the vesting of time-based vesting
RSUs granted to him/her during such period. As of December 31, 2024, our chief executive officer is in compliance with the applicable
Minimum Holding requirement.

For further information concerning our employee equity plans and
outstanding employee equity, see Note 14B to the consolidated financial statements included in this annual report.

C. BOARD PRACTICES

Board of Directors

Our Articles of Association provide that the Board of Directors
shall consist of at least five and no more than 11 members. Our Board of Directors is currently comprised of 11 directors. Our directors
are elected by our shareholders by the vote of a majority of the ordinary shares present, in person or by proxy, and voting at that meeting.
Generally, our directors hold office until their successors are elected at the next annual general meeting of shareholders (or until any
of their earlier resignation or removal in accordance with the Companies Law). In addition, our Articles of Association allow our board
of directors to appoint directors (other than the external directors) to fill vacancies on our board of directors, until the next annual
general meeting of shareholders.

External Directors

The Companies Law requires Israeli companies with shares that have
been offered to the public in or outside of Israel to appoint at least two external directors. However, pursuant to the Companies Regulations
(Relief for Companies Whose 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  

  The company complies with the requirements of the securities laws and stock exchange regulations in the foreign jurisdiction where      

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