762
THE NEW ZEALAND GAZETTE
[No. 53

then owing under the contract; such payments to be made
in cash or marked cheque if so demanded. The amount so
paid shall be held by the Secretary upon and subject to the
following trusts and conditions, viz.:

(1) If the amount has been paid by the seller, and
before the date fixed for completion of the contract
the market price of the shares or stock falls to
the contract price, then such amount shall be paid
to the seller if demanded:

(2) If the amount has been paid by the buyer, and
before the date fixed for completion the market
price of the shares or stock rises to the contract
price, then such amount shall be repaid to the
buyer if demanded:

(3) The said amount shall in any case be repaid to the
party paying the same at the written request of
the other party:

(4) The said amount shall be repaid to the party paying
the same on the Secretary being satisfied that the
contract has been completed:

(5) If the party who has paid such amount shall fail
to complete the contract, then the said amount
shall be applied in the first place in paying to the
other party the amount which the defaulting party
is liable to pay to him as hereinafter provided;
and the balance (if any) shall be applied, firstly,
in paying the brokerage payable to the Chairman
as hereinafter mentioned, and, secondly, towards
the payment of any fine or fines inflicted upon the
defaulter:

Provided always that the seller may, in lieu of paying
to the Secretary of the Exchange the difference between the
market price and the amount owing under the contract,
deposit the shares or stock in manner hereinafter mentioned.
When any shares or stock are deposited under the provisions
of this rule, such shares or stock shall be deposited with the
Secretary of the Stock Exchange, or with such other person
or persons as may be mutually agreed upon by the parties
to be held by the Secretary, or other person or persons,
pending the due completion of the contract. On payment of
the amount payable under the contract the shares or stock
shall be delivered to the buyer, but if the buyer shall make
default in such payment such shares or stock shall be returned
to the seller.

In this rule, unless otherwise expressed, the “market
price” shall mean the market price of the shares or stock
at the time when application is made, or the notice is served
as aforesaid, as the case may be. All disputes as to the
market price shall be decided by reference to the Chairman
of the Exchange, or, in his absence, to any member of the
Committee who may be available, and mutually agreed upon,
whose decision shall be final, conclusive, and binding on all
parties.

If default shall be made by the buyer in complying in
manner aforesaid with any such application or notice as
aforesaid, or in completing the purchase at the time fixed
by the contract, the seller may in either or any such case
forthwith, at his option, either cancel the contract or sell
out the shares or stock through the Chairman; and the
purchaser shall forthwith pay to the seller the difference
between the contract price and the net proceeds from the
sale.

If default shall be made by the seller in complying with
any such application or notice as aforesaid, or in completing
the purchase at the time fixed by the contract, the buyer may,
in either or any such case forthwith, at his option, either
cancel the contract or buy at the risk of the seller through
the Chairman, and the seller shall forthwith pay to the buyer
the difference between the contract price and the gross
amount paid by the buyer. The Chairman shall charge the
usual rates of brokerage on all such sales as aforesaid, the
amount in each case to be paid by the defaulting party.

DIVIDENDS

99. Transactions in shares shall be with dividend until
    the day the dividend is payable. When transfers are delivered
    subsequent to the declaration of a dividend, but prior to the
    closing of the books of the company, and in sufficient time
    for the registration of the shares, the seller shall not be
    responsible for the dividend, and the buyer’s claim shall be
    only upon the registered holder; but when no reasonable
    time is afforded to the buyer to register the shares in his
    own name, then the seller shall be responsible for the divi-
    dend.

100. Dividends payable between the date of sale and the
     maturity of time bargains shall accrue to the buyer, and
     shall be accounted for at the time of settlement of the
     bargain.

101. Accrued interest on debentures up to and including
     the day of sale, in addition to the price, shall belong to the
     seller.

CALLS

102. All calls made prior to time of sale shall be paid
     by the seller before delivery. Calls made between the date
     of sale and maturity of time bargains shall be paid by the
     buyer to the seller at the time of settlement of bargain.

TIME BARGAINS

103. Unless otherwise agreed, neither party to a time
     bargain shall be entitled to call upon the other party to
     complete until the day fixed for completion.

104. Time bargains, the day for completion of which
     shall fall on a Sunday or Exchange holiday, shall not be
     completed until the business day next following.

NEW SHARES

105. In the event of new shares being created and offered
     to the shareholders in any company during the currency of a
     time bargain, or pending delivery of shares in time for the
     buyer to complete transfer to enable him to secure such new
     shares himself, the buyer, if desirous of receiving his pro-
     portion of such new shares, shall request the seller in writing,
     accompanied by the necessary funds, to secure them, and the
     seller, on receipt of such request, shall secure them, but the
     seller may elect to deliver such documents as will enable the
     buyer to secure the new shares.

106. When a transaction is in shares on a London
     register, the responsibility of the seller shall cease if he shall
     have taken every practicable course to secure the new shares;
     and, further, the seller shall be relieved of all responsibility
     if the circumstances place him in no better position than the
     buyer to secure the new shares, in which case the seller may,
     on receipt of a written request from the buyer to protect his
     rights, notify the buyer in writing of such circumstances, and
     the buyer on receipt of such notification shall protect his own
     interests.

NON-MEMBERS.—FAILURE TO MEET ENGAGEMENTS

107. Non-members shall pay for all stocks or shares pur-
     chased on their account before 2 o’clock on the day following
     the purchase, unless an agreement be made in writing to the
     contrary.

108. Should a purchaser, not a member, fail to pay the
     amount due on his purchase as per Rule 107, either the
     seller or his broker, or the purchaser’s broker, shall be at
     liberty, at any time thereafter, at his or their option, either
     to sue such purchaser for breach of contract or to resell the
     securities in any manner and upon such terms and conditions
     as he or they may think proper, and to sue for the difference
     and all loss and expenses consequent upon such resale,
     whether the same shall be made immediately on such failure
     to pay as aforesaid or at any time thereafter; and all
     damages which the seller or his broker, or the purchaser’s
     broker, may sustain thereby shall be recoverable by him or
     them from the purchasers as and for liquidated damages, and
     it shall not be necessary to give notice of any such resale.

109. In the event of any person not a member failing to
     meet any engagement with a member of the Exchange, the
     members may apply to the Committee to have such person
     posted as a defaulter. The Committee shall inquire into the
     case, and if satisfied that such default has been made shall
     post the said person and announce to the members that he is
     in default.

110. A member shall not transact business for a non-
     member who has been announced to the members as a
     defaulter unless such person shall have made an arrangement
     with his creditors or creditor satisfactory to the Committee.

MEMBERS BARRED FROM DEALING WITH OTHER MEMBERS’
EMPLOYEES

111. A member shall not buy or sell shares for any one
     employed in another member’s office.

DISPUTES

112. In disputes between members with reference to stock
     and share transactions brought under the consideration of the
     Committee to adjudicate upon any complaint submitted, their
     decision shall be final and binding, and shall be carried out
     forthwith by the member or members concerned.

Unless permission of the Committee has first been
obtained, members shall not appeal to any Court of law or
equity in any dispute that may arise between them in trans-
actions under these rules, and if such permission is not
granted they shall accept the Committee as the sole and
final tribunal and arbiter therein.

113. It shall not be incumbent upon the Committee to
     entertain any complaint submitted to them by any one not
     a member of the Exchange against a member of it, unless
     such member shall have been employed by the complainant
     in the capacity of broker; and in that or any other case in
     which a non-member desires the intervention of the Com-
     mittee he shall, previously to the case being heard, pay not
     less than five guineas, or such other sum as the Committee
     may determine, to the Secretary, and shall undertake in
     writing to abide by and forthwith to carry out the decision
     of the Committee in the same manner as if he were a member
     of the Exchange; the Committee to have the power to repay
     the whole or part of the five guineas or such other sum to
     the complainant.

POWER OF COMMITTEE TO PROCURE INFORMATION RELATIVE TO
MATTERS UNDER INVESTIGATION

114. Members and their clerks when required so to do
     by the Committee shall attend any meeting of the Committee,
     and then and there shall give such information as may be in
     their possession relative to any matter under investigation.

115. The Committee shall have full and absolute power,
     in the event of a complaint being made, which in their
     opinion justifies such procedure, to call upon any member to
     produce for their inspection all books, letters, telegrams, or
     copies thereof, and other documents in his possession relating
     thereto, and he shall, without delay, produce them for
     inspection accordingly.