Fit and proper person test
In deciding whether to grant a licence, the council must be satisfied that the proposed licence holder ‘…is a fit and proper person to be the licence holder…’ and that the proposed manager of the house 'is a fit and proper person to be the manager of the house…’
The licence may be revoked where the council no longer considers that the licence holder is a fit and proper person to be the licence holder… and where the council no longer considers that the management of the house is being carried on by persons who are not in each case fit and proper persons to be involved in its management.
This requirement is to ensure that those responsible for operating the licence and managing the property are of sufficient integrity and good character to be involved in the management of the particular residential property and as such they do not pose a risk to the welfare or safety of persons occupying the property.