| (1) | The Authority may, whether on its own initiative or pursuant to an instruction issued by a court of law or an adjudicator contemplated in section 30, withdraw a Fidelity Fund certificate issued to— |
| (a) | any person, partnership or trust summoned in the prescribed manner to appear before the Authority if that person or trust, without just cause, fails to comply with the summons and prior to the date of the appearance stated in the summons has not been excused in writing by the Authority, from so appearing; |
| (b) | a company or close corporation, if— |
| (i) | the Fidelity Fund certificate of any director of the company or of any member of the corporation has lapsed in terms of subsection (5); or |
| (ii) | any director of such company, or any member, referred to in paragraph (a) of the definition of ‘‘property practitioner’’ in section 1, of such corporation, has lapsed in terms of subsection (5), or any trustee of a trust or the person responsible for the trust, becomes subject to any |
disqualification referred to in section 50(b)(ii) and (iii) or section 50(c);
| (c) | a person or trust becomes subject to any disqualification referred to in section 50(b)(ii), (iii) or section 50(c). |
| (2) | A person who is in possession or in control of any Fidelity Fund certificate which has been withdrawn in terms of subsection (1) must refrain from using or displaying that Fidelity Fund certificate. |
| (3) | A court may, on good cause and upon application by the Authority or any other competent person, withdraw any Fidelity Fund certificate issued to any person, and thereupon order that the person contemplated in subsection (2) or any other person to immediately refrain from using and displaying that Fidelity Fund certificate. |
| (4) | A Fidelity Fund certificate lapses immediately and is of no force and effect if the person to whom it has been issued— |
| (a) | in the case of a natural person, the person to whom it has been issued dies or becomes subject to any disqualification referred to in section 50(a)(ii) to (vi); |
| (b) | is a company or a close corporation, and the company or close corporation is being wound up, whether provisionally or otherwise, or is deregistered, as the case may be; |
| (c) | is a partnership, and one of the partners is sequestrated; or |
| (d) | in the case of a trust with only one trustee, that trustee is sequestrated. |
| (5) | A person who is in possession or control of a Fidelity Fund certificate which has been withdrawn or has lapsed must immediately return that certificate to the Authority, or if that Fidelity Fund certificate cannot be returned, submit a declaration made under oath or affirmed as to the reasons and circumstances preventing the property practitioner from doing so. |
| (6) | A person whose Fidelity Fund certificate has been withdrawn in terms of subsection (1) or has lapsed in terms of subsection (4), may not directly or indirectly participate in the management of any business carried out by a property practitioner in his, her or its capacity as such, or participate in the carrying out of such business, or be employed, directly or indirectly, in any capacity in such business, except with the written consent of the Authority and subject to the conditions that the Authority may determine. |
| (7) | A property practitioner may not directly or indirectly in any capacity whatsoever employ a person contemplated in subsection (6), or allow or permit such person directly or indirectly to participate in any capacity in the management or the carrying on of his, her or its business as a property practitioner, except with the consent in writing of the Authority, and subject to the conditions that the Authority may impose. |
| (8) | The Authority has no liability whatsoever in respect of the withdrawal or lapse of a Fidelity Fund certificate, except where the withdrawal was due to the Authority’s negligence. |
| (9) | A person, partnership or trust whose Fidelity Fund certificate has been withdrawn or lapsed in terms of this section may re-apply for a Fidelity Fund certificate when it, he or she again qualifies for such a certificate. |
| (10) | A person who uses or displays the Fidelity Fund certificate contemplated in subsection (2) is guilty of an offence. |
