If the Registrar considers that a prescribed community benefit society has contravened regulation 3 and that an officer of the society has been knowingly concerned in the contravention, the Registrar may direct the society to remove the officer from his office or position.

The Registrar may not exercise the power in paragraph (1) if he considers, having taken into account any representations made to him in response to a warning notice, that the officer concerned took all reasonable steps to secure that the society did not contravene regulation 3.