Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 186L

Scope

             (1)  This section applies in relation to a company if the company is a registered debt agreement administrator.

Company no longer passes the basic eligibility test

             (2)  The Inspector-General must cancel the company's registration as a debt agreement administrator if the Inspector-General is satisfied that the company no longer passes the basic eligibility test.

Other grounds for cancellation of registration

             (3)  The Inspector-General may ask the company to give the Inspector-General a written explanation why the company should continue to be registered as a debt agreement administrator, if the Inspector-General has reasonable grounds to believe that:

                     (a)  the company no longer has the ability to satisfactorily perform the duties of an administrator in relation to a debt agreement; or

                     (b)  the company has failed to properly carry out the duties of an administrator in relation to a debt agreement; or

                     (c)  the company has contravened a condition of the company's registration; or

                     (d)  the company has ceased to have:

                              (i)  adequate and appropriate professional indemnity insurance; or

                             (ii)  adequate and appropriate fidelity insurance;

                            against the liabilities that the company may incur working as a registered debt agreement administrator; or

                     (e)  the company is not a fit and proper person; or

                      (f)  a director of the company is not a fit and proper person.

             (4)  If:

                     (a)  the Inspector-General does not receive an explanation within 28 days of requesting it; or

                     (b)  receives an explanation, but is not satisfied with it;

the Inspector-General may cancel the company's registration as a debt agreement administrator.

Notice of cancellation

             (5)  If the Inspector-General cancels, under subsection (2) or (4), a company's registration as a debt agreement administrator, the Inspector-General must give the company written notice of the cancellation, and the reasons for it.

Removal of registration details

             (6)  If the Inspector-General cancels, under subsection (2) or (4), a company's registration as a debt agreement administrator, the Inspector-General must remove the company's registration details from the National Personal Insolvency Index.

Guidelines

             (7)  In deciding whether to cancel, under subsection (2) or (4), a company's registration as a debt agreement administrator, the Inspector-General must have regard to any relevant guidelines in force under section 186Q.

Review

             (8)  If the Inspector-General decides to cancel, under subsection (2) or (4), a company's registration as a debt agreement administrator, the company may apply to the Administrative Appeals Tribunal for review of the decision.