When you apply for a motor car trader licence, the Business Licensing Authority (BLA) will ask you for information about your ‘associates’ - that is, people you have a close association with who may have significant influence over the business. This will help the BLA determine if you or your company are fit and proper to hold a licence.
On this page:
Significant influence
Possessing a significant influence in relation to the company includes:
- having a relevant financial interest, which means holding shares, receiving an income stream, or being entitled to receive payment for advancing money to the company
- having a relevant power, which means being able to participate in directorial, managerial or executive decision-making, or being able to elect or appoint a person to an executive position.
Serious offence
This is an offence involving fraud, dishonesty, drug trafficking or violence punishable by imprisonment for three months or more.
Sole trader applicants
If you are a sole trader, an associate is:
- your spouse or domestic partner
- your business partner
- someone that you have a business arrangement or relationship with
- anyone who is able to significantly influence your business management or operation. This includes lending money to your business or co-owning any assets that you are using to support your application.
The BLA will check if the associate, company director or secretary:
- has been convicted or found guilty of a serious offence within the last 10 years
- has had a claim admitted against the Motor Car Traders Guarantee Fund
- would be a fit and proper person if they applied for a licence.
If you have a business partner who is involved in another company, the BLA will check whether the business partner or director of the other company:
- has been convicted or found guilty of a serious offence within the last 10 years
- has had a claim admitted against the Motor Car Traders Guarantee Fund
- would be a fit and proper person if they applied for a licence.
Company applicants
For company applicants, an associate is:
- a director, secretary, CEO or manager of the company
- the spouse or domestic partner of a director or secretary of the company
- anyone else who is able, or will be able, to exercise significant influence on the company’s management or operation. This includes lending money to the business or co-owning any assets that the company is using to support its application.
If you have a business partner who is involved in another company, the BLA will check whether the business partner or director of the other company:
- has been convicted or found guilty of a serious offence within the last 10 years
- has had a claim admitted against the Motor Car Traders Guarantee Fund
- would be considered fit and proper if they applied for a licence.
If another company is able to significantly influence the management or operation of your company, the BLA will check whether the director or secretary of the other company:
- has been convicted or found guilty of a serious offence within the last 10 years
- has had a claim admitted against the Motor Car Traders Guarantee Fund
- would be considered a fit and proper person if they applied for a licence.
If an associate does not meet the required criteria
This may result in the BLA refusing your application. Please contact us if you are unsure how to proceed with your application.
Declaring your associates
Once licensed, you must notify the BLA of any change of an individual or company associate on your licence, view Update licence details – motor car traders.