Thakkar

[2019] NZHC 2011

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2019-404-001438

[2019] NZHC 2011

UNDER	Section 382 of the Companies Act 1993
IN THE MATTER OF	An application by RAJESH THAKKAR for an order granting leave to act as a director

Date of Hearing:

15 August 2019

Appearances:

S Elliott for the Applicant

G S Caro for Ministry of Business, Innovation and Employment

Judgment:

15 August 2019

ORAL JUDGMENT OF POWELL J

Thakkar (Originating Application for leave to act as a Director) [2019] NZHC 2011 [15 August 2019]

[1]                 The applicant, Rajesh Thakkar, has applied for an order under s 382 of the Companies Act 1993 granting leave for him to act as a director of two companies, Toro Churro New Zealand Limited (5711428) and R&S Thakkar Investments Limited (1728703).

[2]                 The application is necessary because on 12 October 2018 Mr Thakkar was convicted of a dishonesty offence (dishonestly using a document) in relation to the importation of chewing tobacco by his company, Yogiji’s NZ Limited. As a result, Mr Thakkar is prohibited from being a director or managing a company for a period of five years, under s 382 of the Companies Act 1993.

[3]                 Since his conviction Mr Thakkar has sold the Yogiji’s NZ Ltd business and resigned as a director from that company and all other related companies. In relation to the two companies for which leave is sought:

(a)Torro Churro New Zealand Ltd is  a  new  business  established  by Mr Thakkar which operates a series of Churro food kiosks in New Zealand and in India and Mr Thakkar is the sole director and shareholder of this company with no one else who can act as the director.

(b)R&S  Thakkar  Investments  Limited  is  a  holding   company  for  Mr Thakkar’s own investment properties. Mr Thakkar and his wife are currently directors and shareholders, but Mrs Thakkar has been recently diagnosed with a serious illness and is not in a position to assume sole directorship of the company.

[4]                 The Registrar of Companies has filed a memorandum with regard to the application. The Registrar is entitled to attend and be heard in order to represent the public interest.

[5]                 In this case Mr Caro, for the Registrar, has noted that while any dishonesty charge is serious, Yogiji’s NZ Limited was required to pay significant reparations to Customs New Zealand but was not able to pay and Mr Thakkar in fact paid himself.

In addition, Mr Caro made the submission that, from  the Registrar’s perspective,  Mr Thakkar’s conduct was the “least serious disqualifying conduct that the Registrar had encountered in terms of considering leave applications under s 382”. The Registrar has also accepted that in relation to both companies for which leave is sought, Mr Thakkar’s application is reasonable and genuine.

[6]                 Overall the Registrar has indeed submitted that leave should be granted in this case, noting that the public face no real or discernible risk if Mr Thakkar is granted leave.

[7]                 Given that position, and having read the evidence filed in support of the application, I too am satisfied that the application should be granted, and I make orders in the terms sought.

[8]There is no issue as to costs.

Powell J