Feb. 2.] THE NEW ZEALAND GAZETTE. 439

DEFAULTERS.

Defaulters, Committee to deal with the, and how.

53. The Committee shall have the power to fine, suspend, or recommend the expulsion of any member who shall fail to pay, when due, any debt incurred by him to another member. Should the Committee decide to recommend the member's expulsion, they shall report accordingly to the members at a special general meeting called for that purpose. It shall be competent for the said special general meeting to confirm the Committee's recommendation, and expel the member so brought before them, or deal with him by fine or suspension from membership.

A member who becomes insolvent, or assigns his estate for the benefit of or compounds with his creditors, shall ipso facto cease to be a member, although he may not be at the same time a defaulter on the Exchange; but may be reinstated without payment of fee after he has obtained his discharge from his insolvency or a release from his creditors, by ballot taken in the same manner as provided by Rule 36.

Open transactions of defaulters to be closed at order of Committee.

54. The Committee shall have power to order that all open transactions, including time bargains, between any member unable to meet his engagements and other members, shall be closed within a time to be named by the Committee. Such transactions shall be closed accordingly by the Chairman buying or selling in the market on account of the member in default, such stocks or shares as he may have contracted to sell or purchase.

Members shall without delay render full statements of account to the Committee.

Accounts of members with a member in default.

55. The Committee shall have power to investigate the accounts of members with a member in default, and to reject or require the correction of any items which they deem unsatisfactory.

Surpluses.

56. Members, creditors of a member in default, shall have a preferential claim on all surpluses in the hands of other members resulting on the closing of transactions open at the time of default, and also on all moneys which may become payable to a member in default out of the funds in the hands of the Committee from the estate of another member in default. All surpluses in the hands of members resulting on the closing of open transactions with a member in default shall be paid to the Committee.

How to deal with surpluses.

57. The Committee shall distribute as soon as possible amongst members, creditors of the member in default, the surpluses received from other members on his account, and all moneys due to him out of funds in the hands of the Committee from the estate of another member in default.

DISTRIBUTION OF ASSETS OF EX-MEMBERS.

Recent claims to have preference in distribution of assets of an ex-member.

58. The Committee, in dividing amongst members, creditors of a late member, the proceeds received by them on sale of a membership, after deducting the transfer fee of the purchaser and all other liabilities due to the Exchange, or in dividing any surpluses received by them from members on account of a defaulting member's estate, or in dividing any moneys due to him out of the funds in the hands of the Committee from the estate of another member in default, shall not necessarily distribute the same pro rata, but may in their discretion give preference, either wholly or in part, to claims of recent date over claims of longer standing which were not divulged to the Committee at the time they arose.

Claims not arising from transactions under the rules.

59. Claims on the estate of a resigning, retiring, or deceased member that do not arise from transactions under the rules shall not be recognized by the Committee until all claims that have arisen from transactions under the rules shall have been satisfied.

Outside brokers non-members.

60. Licensed sharebrokers not members of the Exchange (hereinafter called “outside brokers”) may be admitted to the privilege of doing business with members and dividing commission at an annual fee not exceeding £20, provided such outside brokers subscribe to the rules of the Exchange, and agree to be bound thereby in every respect as if they were members of the Exchange.

A list of all such outside brokers shall be entered in a book to be kept for that purpose by the Secretary of the Exchange, which book shall at all reasonable times be open for inspection. Names may from time to time be added to or removed from such list by the Committee.

Members' clerks may be admitted to official meetings.

61. The Chairman may grant a member permission for a clerk in his service to attend the official meetings for the purposes of making quotations, and the purchase and sale of shares on behalf of his employer, but for no other purpose. Such authorized clerk shall be subject to the rules and usages of the Exchange, but shall not have a vote at any meeting nor any voice in the management of the Exchange. The Chairman may withdraw the permission at any time.

Conditions of admission.

62. A clerk so admitted to official meetings shall be deemed to be the agent of his employer, and the member on whose application he is admitted shall be responsible for all the transactions of the said clerk.

Admission allowable only under certain circumstances.

63. The attendance of a clerk at an official meeting shall be permitted in the case of a member's illness, absence from town, service on a jury, or other special emergency. The contingency for such attendance is to be shown at the time to the satisfaction of the Chairman.

Qualification of clerk.

64. A clerk shall not be eligible for admission unless he be at least twenty-one years of age.

Restrictions to dealing by a clerk.

65. A clerk shall not buy or sell time bargains, or deal except in cash transactions, unless he shall have written authority to do so from his employer, such authority to be lodged with the Chairman; and all his dealings shall be on account of his employer.

Members may withdraw authority given to a clerk.

66. A member may, by a letter addressed to the Secretary, withdraw the authority for his clerk to act, but his responsibility shall continue until such withdrawal shall have been notified to the members at an official meeting.

COMMISSION.

Brokerage chargeable.

67. The brokerage chargeable to both buyer and seller of shares in all companies, and debentures and stocks, shall be as follows: Shares of the value of 1s. and under, ¼d. per share; from 1s. to 3s. 4d. in value, ½d. per share; from 3s. 4d. and upwards in value, 1¼ per cent. Minimum commission, 5s.

Members not to divide commission except under special conditions.

68. No member of the Exchange, or his clerk, partner, or employee, shall, either directly or indirectly, divide commission with any person not a member of the Exchange, except such persons as are provided for in Rule 60. But a member of the Exchange may transact business and divide commission with any broker whose place of business is more than twenty miles from the Borough of Thames.

69. No member shall sell or purchase shares at a net price to or from a person who is not a member of the Exchange in the Borough of Thames, nor to or from any person elsewhere who is not a licensed sharebroker.

OFFICIAL MEETINGS.

Time, place, and purposes of official meetings.

70. The official meetings of the Exchange shall be the meetings of members held at such place and times as the members shall appoint, at which the business shall be to make prices, effect sales, and receive and record quotations of sales; also to do any general business in accordance with these rules.

Official and special holidays.

71. The official holidays to be observed by all members of the Exchange shall be fixed at the annual general meeting held in December of each year. Special holidays shall not be declared except by the vote of not less than two-thirds of the members present at any official meetings; provided that notice of intention to take such vote be given by the Chairman at a previous meeting. No meeting shall be held on public holidays unless otherwise ordered by the members in the same manner as that provided for special holidays.

Members leaving during a meeting must get permission.

72. A member shall not leave an official meeting without the permission of the Chairman, under penalty of a fine of £5, which shall be paid within seven days.

QUOTATIONS.

Procedure to be observed at official meetings.

73. At the official meetings the prices made shall be binding on members making them to the extent of the minimum quotation. No sale shall be made while the record of business done is being called over, or during any time of suspense ordered by the Chairman.