1786
THE NEW ZEALAND GAZETTE.
[No. 40

which now are or hereafter may be for the time being in force.
I have read the rules at this date, and am willing to sign
them when called upon to do so.

I am, &c., . . . . . . . . . . . .

DECEASED OR EX-MEMBERS HAVE NO CLAIM ON ASSETS.
Deceased or ex-members have no claim on the assets of the Exchange.
56. Members who resign or cease to be members from any
cause whatever, or the executors or the administrators of any
deceased member, shall have no claim on the assets of the
Exchange.

DEFAULTERS.
Defaulters : Committee to deal with them, and how.
57. The Committee shall suspend for such period as it shall
think fit, and may also fine or recommend for expulsion 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 accord-
ingly 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, and shall forfeit to the Exchange all interest in his
membership and in the funds and property of the Exchange,
notwithstanding that he may not be at the same time a
defaulter on the Exchange ; but such member may be rein-
stated without payment of fee after he has obtained his dis-
charge from his insolvency, or a release from his creditors,
by ballot taken in the same manner as provided by Rule 40.

Open transactions of defaulters to be closed at order of Committee.
58. 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 stock or shares as he may have contracted
to sell or purchase. The Chairman shall charge current rate
of brokerage to the defaulter, and such brokerage shall be
the property of the Chairman. Members shall, without delay,
render full statements of account to the Committee.

Notice of default.
59. Should it come to the knowledge of any member of the
Exchange that a broker, either in Christchurch or elsewhere,
has failed to meet his engagements, the said member must at
once report the circumstances to the Chairman, who shall
bring the matter before the Exchange at its first meeting for
decision as to what action shall be taken. Any member
failing or neglecting to report to the Chairman as above
specified shall be liable to be fined a sum not exceeding £200,
or to be suspended, at the option of the Exchange.

Accounts.
60. 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 may deem
unsatisfactory.

Surpluses.
61. 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 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.
62. 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 Com-
mittee 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.
63. 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 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.
64. Claims on the estate of a resigning, retiring, or deceased
member that do not arise from transactions under these rules
shall not be recognized by the Committee until all claims
that have arisen from transactions under the rules shall have
been satisfied.

PARTNERS OR CLERKS.
Members’ partners and clerks may be admitted to official meetings.
65. Without limiting the powers of a member under
clause 41 of these rules, the Chairman or Vice-Chairman may
grant a member permission for a partner or clerk in his
service to attend the official meetings for the purpose of
making quotations and the purchase and sale of shares on
behalf of such member, and in his stead, but for no other
purpose. Such authorized partner or 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 or Vice-Chairman may with-
draw the permission at any time. A member shall not enter
into or be in active partnership with any person other than
a member, unless such partner shall have been approved by
resolution of a meeting of the Committee.

65A. Where one of the members of a firm is a member of
the Exchange, the entrance fee payable by another member
of the same firm shall be reduced one-half : Provided that
in the event of a dissolution of such partnership taking place
the member who entered at reduced entrance fee, should he
desire to remain a member, shall be required to pay, within
one month after such dissolution has taken place, a sum
which shall, with the amount already paid by him, make up
the full entrance fee payable at the date of his election ; and
until such sum be paid the member shall be considered not
to have paid his entrance fee (as provided by these rules),
and shall not be entitled to attend the Exchange-room or to
have any of the rights of membership, and shall cease to be
a member. But if the same partnership shall have continued
for a period of five years from the date of election he shall
then be considered a full member without further payment.
Any member who has not paid the full entrance fee payable
at the date he became a member shall not have power to
deal, by transfer or otherwise, with his seat on the Exchange
for a period of five years.

Conditions of admission.
66. 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.

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

Restrictions to dealing by a clerk.
68. 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.
69. A member may, by a letter addressed to the Secretary,
withdraw the authority to his clerk to act, but his respon-
sibility shall continue until such withdrawal shall have been
notified to the members at an official meeting.

COMMISSION.
Brokerage chargeable.
70. The rates of brokerage shall be those fixed or adopted
from time to time by the Stock Exchange Association of New
Zealand.

No unauthorized rates to be charged.
71. No rates other than those fixed or adopted shall be
charged. It shall not be allowable under any circumstances
whatever to pay agents or other persons not members of an
Exchange affiliated to the Stock Exchange Association of
New Zealand a remuneration of any kind for introducing
business, except in respect of applications for shares in new
companies, or for new issues of shares, bonds, stock, or
debentures.

Member not to do business below rates.
72. No member shall do business for or with any broker or
other person (other than a member of an Exchange affiliated
to the Stock Exchange Association of New Zealand, or a
member of a recognized Exchange beyond New Zealand) at
net prices, or at less than the rates of commission fixed or
authorized by the Stock Exchange Association of New Zealand.

OFFICIAL MEETINGS.
Time, place, and purpose of official meetings.
73. 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