37Cancellation of units — breach of undertaking to transfer the units

37 Cancellation of units — breach of undertaking to transfer the units

(a) an entity (the first entity) gives the DAA an undertaking under paragraph 33 (6) (b) to transfer a unit to a primary producer; and

(b) the first entity breaches the undertaking.

(2) If this subsection applies, the DAA may give the first entity a notice directing it to comply with the undertaking before the end of a period of 60 days beginning when the direction is given.

(3) The DAA may cancel the unit if:

(a) the DAA gives a notice under subsection (2) to an entity; and

(b) the entity contravenes the direction.

Note If a unit is cancelled under this section, the cancellation takes effect from the end of the 60‑day period: see subclause 52 (2) of Schedule 2 to the Act.