New South Wales Consolidated Acts

MOTOR DEALERS ACT 1974 - SECT 20D

20D Notices to show cause

(1) Where, at any time, the Director-General is of the opinion that there are reasonable grounds for believing that:

(a) a licence may have been improperly obtained or, at the time a licence was granted, there may have been grounds for refusing to grant it,

(b) the holder of a licence has been convicted of an offence against this Act or the regulations or any other enactment administered by the Minister,

(b1) the holder of a licence has been convicted of an offence under section 22 (2) or (4) of the Road Transport (Vehicle Registration) Act 1997 (Affixing of interstate number-plates on registrable vehicles in New South Wales),

(c) the holder of a licence may have failed to comply with this Act or the regulations, a condition or restriction to which the licence is subject or an order of the Tribunal applicable to the holder,

(d) the holder of a licence has, within the period of 10 years that last preceded the grant of the licence, been found guilty of an offence involving fraud or dishonesty punishable on conviction by imprisonment for 3 months or more,

(d1) the holder of a licence has (as an adult), within the preceding 10 years or the period of 10 years that last preceded the grant of the licence, been found guilty of:

(i) an offence involving, or relating to, stealing a motor vehicle (within the meaning of Subdivision 5A of Division 1 of Part 4 of the Crimes Act 1900 ), or

(ii) receiving, or being in unlawful possession of, a motor vehicle (within the meaning of Subdivision 5A of Division 1 of Part 4 of the Crimes Act 1900 ) or a motor vehicle part,

(d2) in the light of evidence acceptable to the Director-General, the holder of the licence is probably receiving or dealing in stolen goods,

(e) the business to which a licence relates is being carried on in a dishonest or unfair manner,

(f) if a person were not the holder of a licence, the Director-General would be required by section 12 (2), (3A) or (4) to refuse an application by the person for a licence,

(g) in the case of a holder of a dealer’s licence (being a body corporate), the holder:

(i) is in the course of being wound up,

(ii) is under official management,

(iii) is a body corporate in respect of which a receiver or manager has been appointed, or

(iv) has entered into a compromise or scheme of arrangement with its creditors,

or may, for any other reason, be unable, or is likely to become unable, to meet the holder’s liabilities,

(h) the holder of the licence has, for a period of 1 month or more, ceased to carry on the business to which the licence relates at a place of business to which the licence relates,

(i) the holder of the licence is contravening another Act or an instrument made under another Act by carrying on the business to which the licence relates at a place of business to which the licence relates, or

(j) the holder of a licence is, for any other reason, not a fit and proper person to continue to hold a licence,

the Director-General may, by notice in writing served on the holder of the licence, call upon the holder to show cause, within such period, being not less than 14 days, as is specified in the notice, why the holder should not, for the reasons specified in the notice, be dealt with in accordance with this Division.

(1A) By way of example of the operation of subsection (1) (d2), the Director-General may consider that the holder of a licence in whose custody stolen goods are found is probably receiving or dealing in stolen goods.

(2) The holder of a licence on whom a notice to show cause has been served, a person with whom, pursuant to section 19 (2), the holder of the licence carries on, in partnership, the business to which the licence relates or, where the holder is a body corporate, a director or officer of the body corporate may, within the period specified in the notice, make submissions, orally or in writing, and adduce evidence with respect to the matters to which the notice relates.

(2A) The holder of a licence on whom notice to show cause has been served under this section may not surrender the licence unless the Director-General has made a determination under section 20E in relation to each matter to which the notice relates.

(3) The Director-General may conduct such inquiry or make such investigation in relation to the matters to which the notice relates and the submissions made, if any, and the evidence adduced, if any, by or on behalf of the holder of the licence in relation to those matters as the Director-General thinks fit.

(4) Subsection (1) does not require the Director-General to disclose any criminal intelligence in a notice served on the holder of a licence because of the matter referred to in section 12 (3A).