(1) Where the Director has reason to believe that since the making of the last survey report in respect of any ship—
(a) any alteration has been made as is mentioned in section 299;
(b) the hull, equipment, appliances or machinery of the ship have sustained any damage or are otherwise defective or insufficient,
the Director may require the ship to be again surveyed to such extent as the Director thinks fit, and if such requirement is not complied with, may cancel any certificate issued in respect of the ship under this Act.
(2) For the purpose of this section “alteration” in relation to anything includes the renewal or replacement of any part of the ship.