Part 4 Enforcement

Subpart 1—Banning

Ban imposed by Act

68 Persons banned from participating in business of motor vehicle trading

(1)

The following persons are banned from participating in the business of motor vehicle trading:

(a)

a person who has had 2 or more convictions entered against that person’s name within a period of 10 consecutive years for any of the following offences:

(i)

carrying on the business of motor vehicle trading without being registered under this Act, as set out in section 95(1)(a):

(ii)

holding out to be a motor vehicle trader without being registered under this Act, as set out in section 95(1)(b):

(iii)

failing to pay money to a principal, as set out in section 103:

(iv)

entering false information into a record of contracts for sale, as set out in section 105(1)(a):

(v)

falsifying any matter recorded in a record of contracts for sale, as set out in section 105(1)(b):

(vi)

making a false statutory declaration, giving a false certificate, or providing false or misleading information, as set out in section 107:

(vii)

failing to notify the Registrar when a new person becomes concerned in the management of a company, as set out in section 108A:

(b)

a person who has, more than once within a period of 10 consecutive years, done any of the following things:

(i)

failed to comply with an order of the Disputes Tribunal:

(ii)

been concerned in the management of a company that is a banned person:

(iii)

been concerned in the management of a company that is registered as a motor vehicle trader under this Act and that has gone into liquidation because of the company’s inability to pay its debts as and when they became due:

(iv)

been concerned in the management of a company that has failed to provide compensation for any loss incurred by a finance company resulting from the company selling a motor vehicle for which that finance company holds a security interest:

(v)

been concerned in the management of a company that has failed to comply with an order of the Disputes Tribunal:

(c)

a motor vehicle trader, or a person who has at any time within the previous 5 years been a motor vehicle trader, who—

(i)

is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, or the Financial Markets Conduct Act 2013, or the Takeovers Act 1993; or

(ii)

is convicted of a crime involving dishonesty; or

(iii)

is convicted of an offence against sections 17 to 22 or sections 24 to 26 of the Fair Trading Act 1986:

(iv)

has, more than once within a period of 10 consecutive years, been adjudged bankrupt or failed to provide compensation for any loss incurred by a finance company resulting from the person selling a motor vehicle for which that finance company holds a security interest:

(d)

a person who is convicted of the offence of tampering with odometers, as set out in section 99.

(2)

A ban under subsection (1) has effect for a period of 5 years starting on and from the date of the conviction, failure, or matter, as the case may be, for which the ban is imposed by this Act.

(3)

For the purposes of this section, if 2 or more convictions are entered against a person’s name for offences that arise out of the same set of circumstances, those convictions must be treated as a single conviction towards the number of convictions under subsection (1)(a) for which a ban may be imposed by this Act.

Section 68(1)(a)(vi): substituted, on 1 October 2010, by section 14(1) of the Motor Vehicle Sales Amendment Act 2010 (2010 No 112).

Section 68(1)(a)(vii): added, on 1 October 2010, by section 14(1) of the Motor Vehicle Sales Amendment Act 2010 (2010 No 112).

Section 68(1)(c): amended, on 1 October 2010, by section 14(2) of the Motor Vehicle Sales Amendment Act 2010 (2010 No 112).

Section 68(1)(c)(i): substituted, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).

Section 68(1)(c)(i): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).