08 March 2017

Director: Chtouki v. Ministry of Business

Director addresses on company office records are valid for letters sent banning directors from managing any company even when the address is no longer current.
Yosef Chtouki challenged a Ministry of Business notice banning him from acting in company management for a period of four years starting late November 2012.  This after being subsequently convicted of breaching the notice.  He said he had never received any official notice of a ban.  Previously, Chtouki had been involved with a number of companies which raised Companies Office concerns: Beauty Management Riccarton Ltd, Pink Doll Ltd, Hairstyle Management Eastgate Ltd and Hairstyle Management The Palms Ltd.  He had managed companies using various aliases including: Ricardo Santoro, Shamir Doutros and Paco Mani.
Chtouki, while working under the name Joseph Brooks, received adverse media publicity with allegations patrons using his hair salons suffered scalp and hair injuries.
Justice Whata said there was evidence that Chtouki had been advised by his then lawyer that Companies Office staff were investigating his commercial activities and that a banning order might follow.  Subsequent notice of a four year ban was posted out to the multiple director addresses listed on Companies Office files for Chtouki’s many companies.  Directors are obliged to keep the public register at the Companies Office up to date.  A listed address amounts to a person’s “last known address” for sending official notices until a company is struck off, Justice Whata said.  One letter for one company was returned, undelivered as addressee unknown.  An undelivered letter does not amount to effective notice of any ban.
Chtouki was also convicted of making a false statement on the company register for the address of a shareholder in Bungamogoo Pty Ltd.          
Chtouki v. Ministry of Business – High Court (8.03.17)
17.021