Substantiated Claims of non-compliance Clause Samples

Substantiated Claims of non-compliance. 39 If, in the event of a claim that a Member is failing to comply with the terms of the Agreement in some respect other than failure to comply with Article 6 and with the Annexes there cited, the Management Committee decides by a simple majority that the claim is justified, the Member complained of is usually to be given a probationary period of a maximum of six months in which to demonstrate that it has rectified the shortcomings identified. If, however, exceptionally, the Management Committee (excluding the Member in question or, where applicable, that Member’s representative on the Management Committee) is unanimously agreed that, on the evidence provided, there is no prospect of the Member demonstrating renewed compliance within a reasonable time and of remaining compliant thereafter, membership may be terminated immediately. The Management Committee may also vote, unanimously, for immediate expulsion on the grounds that the Member’s obligations under the Agreement have been so flagrantly flouted as to constitute an irreparable breach of faith. 40 If a Member which has been given a probationary period fails within the time-limit imposed to demonstrate to the satisfaction of at least two-thirds of the Management Committee that it has rectified the shortcomings identified, then that Member’s membership is to be terminated, unless the Management Committee (excluding the Member in question or, where applicable, that Member’s representative on the Management Committee) decides unanimously that the probationary period should be extended. If after an extension of the probationary period, the Member still fails to demonstrate to the satisfaction of at least two-thirds of the Management Committee that it has rectified the shortcomings identified, then that Member’s membership is to be terminated without the option for a further extension of the probationary period.
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Related to Substantiated Claims of non-compliance

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