43 Knesset members voted in favor of the measure, while 33 opposed.
According to the new law, Kan will not deal with current events and its news division will be canceled. Most the division's employees will keep their jobs and positions as agreed, and move to the new news organization together with employees of the now-defunct Israel Broadcasting Authority (IBA).
The heads of Kan will have no connection to the new news body, and the director of the news division, Baruch Shai, will be appointed editor-in-chief.
Shai will appoint a general manager who will be responsible for coordinating budgets and managing employees and journalists for the company.
New television and radio broadcasts will begin Monday at 5:00pm.