(1) If:
(a) a ship security plan for a regulated Australian ship is in force; and
(b) the number of demerit points prescribed by the regulations as the number necessary for the Secretary to be able to cancel the approval of the plan has been accumulated in respect of the ship;
the Secretary may, by written notice given to the ship operator for the ship, cancel the approval of the plan.
Note: For the demerit points system, see Division 6 of Part 11.
(2) Before cancelling the approval of a plan under subsection (1), the Secretary may, by written notice given to the ship operator, request the ship operator to show cause why the approval of the plan should not be cancelled.