Victorian Consolidated Legislation

Motor Car Traders Act 1986 - SECT 29

Automatic suspension of licence if Fund claim upheld

29. Automatic suspension of licence if Fund claim upheld



(1) A licence is automatically suspended 30 days after a claim is admitted
against the Fund in relation to the licensee.

(1A) If a licence of a partnership or a body corporate is suspended under
subsection (1), the licence of any partner or director of the partnership or
body corporate is automatically suspended 30 days after the end of the
application period for that partner or director.

(1B) A licence of a partnership or body corporate is automatically suspended
at the end of the notice period for the partnership or body corporate if a
person whose licence has been suspended under subsection (1A) is still a
partner or director of, or a person concerned in the management of, the
partnership or body corporate at the end of the notice period.

(2) If a person whose licence would otherwise be suspended by this section
applies for permission under section 29A before the suspension takes effect,
the person's licence is only automatically suspended if the application is
withdrawn or is refused by the Authority.

(2A) The Authority must give notice in writing of a proposed suspension under
subsection (1A) by serving it on the partner or director affected by the
suspension.

(2B) The notice under subsection (2A) must state that-

   (a)  the person notified may apply under section 29A within 30 days after
        the date the notice was served on the person for permission to prevent
        the suspension from taking effect; and

   (b)  if the person does not apply under section 29A for permission or the
        application is refused or withdrawn, the licence of any other
        partnership or body corporate will be automatically suspended at the
        end of the notice period for that partnership or body corporate if the
        person is still a partner or director of, or a person concerned in the
        management of, the partnership or body corporate at the end of that
        notice period.

(2C) The Authority must serve notice in writing of a proposed suspension under
subsection (1A) on a partnership or body corporate that is a licensee if the
person who is subject to the proposed suspension is a partner or director of,
or a person concerned in the management of, the partnership or body corporate.

(2D) The notice under subsection (2C) must state that-

   (a)  a notice has been served on a person under subsection (2A) and the
        date on which the notice was served; and

   (b)  if an application under section 29A is not made by that person or is
        refused or withdrawn, the licence of the partnership or body corporate
        will be automatically suspended if the person is still a partner or
        director of, or a person concerned in the management of, the
        partnership or body corporate at the end of the notice period for that
        partnership or body corporate.

(3) Subsection (1) does not apply if the circumstances giving rise to a claim
occurred before section 15 of the Motor Car Traders (Amendment) Act 1996 came
into operation.

(4) Subsections (1A) and (1B) do not apply if the circumstances giving rise to
a claim occurred before section 9 of the Motor Car Traders Amendment Act 2008
came into operation.

(5) In this section-

application period in relation to a person, means the later of-

   (a)  the period of 30 days after the date on which a notice was served on
        the person under subsection (2A); or

   (b)  if the person makes an application under section 29A within the period
        referred to in paragraph (a), the date of withdrawal or refusal of the
        application; notice period in relation to a partnership or body
        corporate, means the period of 30 days after the end of the
        application period relating to a person who is a partner or director
        of, or a person concerned in the management of, the partnership or
        body corporate.