Direction to rectify
104 Direction to rectify
This section applies if—
the chief executive believes—
a ground exists to direct the termination of the agency agreement; but
it is appropriate to give the agent an opportunity to rectify the matter without giving a show cause notice; and
the agent and the licensed provider by which the agent was appointed have been given written notice that the chief executive proposes to give a direction under this section and a reasonable opportunity to make representations about the proposed direction.
This section also applies if, after considering the accepted representations for a show cause notice, the chief executive—
still believes a ground exists to direct the termination of the agency agreement; but
believes it is appropriate to give the agent an opportunity to rectify the matter.
The chief executive may, by written notice given to the agent, direct the agent to rectify the matter within the period stated in the notice.
The notice must state the reasons for the decision to give the direction.
The period stated in the notice must be reasonable having regard to the nature of the matter to be rectified.
The chief executive must promptly give a copy of the notice to the licensed provider by which the agent was appointed.
An agent must comply with a direction under this section.Maximum penalty for subsection (7)—20 penalty units.
This Act’s bill:Explanatory memorandum
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