FILE NUMBER: 08-70508

HEARING DATES: November 3, 2009

IN THE MATTER OF THE MOTOR DEALER ACT R.S.B.C.1996 C.316 AND
THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT S.B.C. 2004 c.2

COMPLAINANT: REGISTRAR

MOTOR DEALER and/or SALESPERSON: SAFE AUTO SALES LTD. (Dealer #30988)

ISSUE:

• Review of Application for registration as a motor dealer.
• Applicant’s sole shareholder and directing mind was also the sole shareholder and directing mind of Saman Auto Ltd.
• Saman Auto Ltd. went bankrupt and closed operations in 2005/06.
• After it closed, two compensation claims were paid totaling $29,500 due to Saman’s conduct.
• A third claim is pending a review by the Compensation Fund Board.

OUTCOME:

• If Saman had been registered at the time the Compensation Funds payments were made, it would have been deregistered.
• The Registrar is expressly and implicitly authorized by law to look at the corporate structure before granting registration.
• It would not be in the public interest to grant the registration sought and section 24(2) of the Motor Dealer Act applies in this case.

COMPLETE DECISION: File 08-70508 Hearing Decision File Safe Auto Sales Ltd.

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