63Directions to rectify

63 Directions to rectify (1) This section applies if the commission believes on reasonable grounds that— (a) a ground referred to in section 60 exists; and (b) it is appropriate to give the key person licensee an opportunity to rectify a matter on which the ground is based. (2) If this section applies, the commission may, by notice to the key person licensee in accordance with this section, direct the licensee to take the action specified in the notice to rectify the matter. (3) A notice under subsection (2) must— (a) be in writing; and (b) state the basis for the formation of the commission’s belief; and (c) specify a period that is reasonable in the circumstances within which the licensee must comply with the notice.

(4) The commission must not give a notice under subsection (2) unless, before doing so, the commission has— (a) notified the key person licensee in writing of the grounds that may cause the commission to issue a direction to rectify a specified matter and that the key person licensee may show cause, within a specified period after the date of the notice, (being a period that is reasonable in the circumstances) why the direction should not be issued; and (b) considered any representation made within that period. (5) If the commission believes that a key relationship exists between the of a notice under subsection (2), the commission must promptly give a copy of the notice to the licensed provider. (6) A key person licensee must comply with a direction under this section. Maximum penalty (subsection (6)): 20 penalty units.