(1) The Director may cancel any certificate issued in respect of any ship under this Part, where he has reason to believe that-
(a) any declaration of survey on which the certificate was founded has in any material particular been made fraudulently or erroneously;
(b) the certificate has been issued upon false or erroneous information;
(c) since the making of the declaration of survey, the hull, equipment or machinery of the ship has or have sustained any damage or is or are otherwise insufficient;
(d) any condition on which the certificate has been issued has been contravened;
(e) the master of the ship is not exercising, or is not permitted to exercise, proper control of the ship.
(2) Where a certificate is cancelled under subsection (1) the Director may require the owner or master of the ship to which the certificate referred to have the hull, equipment or machinery of the ship again surveyed and may require the surveyor to complete a further declaration of survey before he re-issues the certificate or issues a fresh one in place thereof.