Section 181(3) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(3)The character of all candidates must be such as would, if continued, qualify them for the Long Service and Good Conduct Medal. The award at any time of a character inferior to "Good" will disqualify a sailor.The particulars of candidates who are considered exceptionally deserving or who have distinguished themselves by meritorious or special services but who have not attained the requisite standard of character, may be submitted to the Chief of the Naval Staff, for consideration.
