| (1) | If the proper officer is satisfied that a licence issued under this Act was obtained fraudulently or on wrong information he may cancel the licence. |
| (2) | If by reason of the contents of a report by a surveyor, or for any other reason, a proper officer is satisfied that— |
| (a) | material alterations which affect the seaworthiness of a vessel which has been licensed under this Act have taken place since the licence was issued; or |
| (b) | the life-saving appliances have not been maintained on such vessel in an effective condition; or |
| (c) | the master of such a vessel is not a fit and proper person to operate the vessel, |
he may cause the vessel to be detained and direct that the deficiency or other cause for the detention of the vessel be remedied; and if after due notice the directions of the proper officer are not complied with, the licence shall be cancelled (date of commencement 1 November, 1961).
