Section 186L — Bankruptcy Act 1966: Cancellation of a company’s registration as a debt agreement administrator

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 Review Tribunal for review of the decision.