(1)  On receipt of an application for a motor vehicle trader licence under section 9 , the Director is to –

(a) grant the application if the Director –

(i) is satisfied that the applicant is a fit and proper person to hold a motor vehicle trader licence; and

(ii) has no reasonable grounds for believing that the applicant has contravened section 10 or provided false or misleading information in the application; or

(b) refuse to grant the application if the Director –

(i) is not so satisfied; or

(ii) does have reasonable grounds for such a belief.

(2)  On refusing to grant an application for a motor vehicle trader licence, the Director is to notify the applicant in writing of that refusal and the reason why the Director is not satisfied that the applicant is a fit and proper person to hold a motor vehicle trader licence.