9 JUNE

(11) Are there any other matters or circumstances which,
in the auditor's opinion, affect the financial position of the
member?

(12) Has all necessary information been available to enable
this certificate to be given?

QUARTERLY STATEMENTS OF ITEMS OUTSTANDING

78A. Each member shall within 14 days after 31 January, 30
April, 31 July, and 31 October in each year, issue to the chairman
of his exchange, a statement of all items (excluding courtesy
claims for dividends) outstanding with other members
for more than one calendar month prior to any such date.
Where a member has any such item outstanding with a member
of another exchange he shall also send a statement thereof to
the chairman of such other exchange.

AMENDMENTS TO RULES

79. (i) These rules or any of them may be altered by way of
    repeal, amendment, addition, or otherwise, by a resolution
    passed by a three-fourths majority of the votes cast at an
    annual or special meeting of the committee provided however
    that if at such a meeting all exchanges are represented by
    delegate or by proxy and the resolution is opposed only by
    the delegates or proxy of one exchange then in such case but
    not otherwise the resolution may be passed by a bare majority
    of the votes cast.

(ii) No resolution for alteration of these rules or any of
them shall be submitted to a meeting of the committee unless
the same has been proposed by the President or unless the
same has been approved by a general meeting of an exchange,
provided, however, that any resolution so submitted may be
passed in amended form if in the opinion of the chairman of
the meeting the amendment does not substantially alter the
character and purpose of the original resolution.

(iii) No proposed alteration if rejected shall without the
consent of the executive be reconsidered by the committee for
six months.

(iv) Where a rule is altered no further alteration to that
rule shall, without the consent of the executive, be considered
by the committee for six months.

(v) Notice of any resolution for alteration of these rules
shall be given in writing to the secretary.

(vi) Fourteen days' notice in writing of a meeting of the
committee to which any resolution for alteration of these rules
is intended to be submitted shall be sent by the secretary to
all members of the committee and to all exchanges.

INVESTMENT OF FUNDS

80. The committee may set aside unexpended funds of the
    Association and may invest them in such securities or otherwise deal with such funds as the committee may from time
    to time determine.

MISCELLANEOUS MACHINERY RULES

81. Each exchange shall, within six months of the passing of
    these rules, cause to be passed and incorporated in its rules
    a rule that each of its members shall be deemed to be bound
    in all respects by the rules of this Association as amended
    from time to time in the same manner as if the same were
    incorporated in the rules of such exchange and that, in the
    event of any conflict between the rules of the Association and
    the rules of such exchange, then the rules of the Association
    shall prevail. Each exchange shall take all proper steps to
    have such rule approved in accordance with the Sharebrokers
    Act 1908.

82. In addition to the foregoing rule and without limiting
    the effect thereof each exchange shall—

(i) At all times (saving only the necessary time required
to fill vacancies) maintain all proper officers to
carry out the functions appointed by these rules
to be carried out by officers of an exchange.

(ii) Provide rules whereby such exchange is authorised to
fine, suspend, or expel any of its members.

(iii) Provide rules whereby it is authorised and empowered
to carry out any of the powers provided by the
rules referred to in subparagraph (ii) hereof at
the direction of this Association.

(iv) Provide rules whereby it shall carry out as against its
members any decisions, award, or ruling (whether
involving a penalty or not) of this Association
whether given on appeal or otherwise in accordance
with these rules.

(v) Nothing in this rule shall be read and construed as
affecting the rights and powers of an exchange
(subject always to appeal to the Association in
accordance with these rules) to deal with its members
by way of fine, suspension, or expulsion in accordance
with its rules.

(vi) For the purpose only of implementing the powers of
this Association it shall when necessary be deemed
to exercise its functions as agent of any exchange
in any case where an exchange has any powers not
possessed by this Association otherwise than by virtue
of this rule.

83. Where any dispute arises or complaint or charge is being
    investigated or any decision is to be made as to which or any
    of which these rules are silent then such decision, complaint,
    or charge shall be dealt with and decision made in accordance
    with good stockbroking practice and where such exists in
    accordance with the established custom in New Zealand. The
    transaction out of which such dispute, complaint, or charge

arises or in respect of which a decision is made shall be
deemed to be a transaction to which these rules apply. The
committee shall be the sole judge as to the existence and
terms of an established custom in accordance with this rule
and the sole judge as to what is good stockbroking practice
in accordance with this rule and where any ambiguity arises
as to the meaning and effect of these rules, the sole judge as to
the interpretation of these rules.

84. Nothing in these rules shall apply to any transaction in
    progress at the time of coming into operation thereof and any
    such transaction shall be completed as if these rules had not
    been made.

PART II

85. Brokerage—The rates of brokerage shall be:

(i) (a) On New Zealand Government and on New Zealand
local body securities and on the securities of such New
Zealand corporations as the executive may from time to
time define as semi-Government corporations—

On Nominal Value Per Cent
On the first £25,000 ..... ½
On the excess over £25,000 up to
and including £50,000 ..... ¼
On the excess over £50,000 ..... ⅛

Reduced Rates:

(1) The reduced rate of brokerage on amounts exceeding
£25,000 as above shall be applicable only to
the extent to which the particular order is completed
within a period of one calendar month from the
receipt of the order, and any uncompleted balance
at that date shall be deemed for the purposes of this
rule to be a new order received on that date.

(2) If the final or advised date of maturity is within 12
months of the date of sale, then brokerage shall
be charged at half the rate which would otherwise
be chargeable

(3) Where New Zealand Government or New Zealand
local body securities are sold and within 24 hours
of the time of sale the selling broker purchases New
Zealand Government or New Zealand local body
securities for the same client, then brokerage at half
the rate which would otherwise be chargeable may
be charged on that part of the transaction (if not
the whole) involving the sale of securities and the
purchase of other securities of the same face value.

(4) Where New Zealand Government or New Zealand
local body securities are sold and within 24 hours
of the time of sale the selling broker arranges a
reinvestment of any part of the proceeds of sale
in a new New Zealand Government or a new New
Zealand local body loan then brokerage on so
much of the securities in respect of which the net
proceeds of sale are reinvested as aforesaid may be
charged at half the rate which would otherwise
be chargeable provided that a placement commission
is allowed by the New Zealand Government or the
New Zealand local body as the case may be.

(5) Should the brokerage shown on a contract note be
less than ½ per cent the note should be stamped
as follows—

“This transaction qualifies for special rates of
brokerage under rule 85.”

(b) On overseas Government and on overseas local bodies
securities—½ per cent on nominal value. If the final or advised
date of maturity is within 12 months of the date of sale, then
brokerage shall be charged at half rates.

(c) On the bonds, debentures, and debenture stock whether
registered or not of companies and all other corporations and
on note issues not carrying the right of conversion into shares—

Listed ..... 1 per cent on nominal value.
Unlisted ..... 1–1/3rd per cent on nominal value.
If the final or advised date of maturity is within 12 months
of the date of sale, then brokerage shall be charged at half
rates.

(d) On listed shares, stock, and note issues carrying the
option exercisable by the holder of conversion into shares
or stock—

Sale Price of Share, Stock, or Note Issue per Unit
Up to 6d. ..... ¼d. per unit.
Over 6d. and up to 2s. ..... ½d. per unit.
Over 2s. and up to 5s. ..... 1d. per unit.
Over 5s. and up to 11s. ..... 2d. per unit.
On all units over 11s. ..... 1½ per cent.

(e) On unlisted shares, stock, and note issues carrying the
option exercisable by the holder of conversion into shares or
stock: The rates prescribed in paragraph (d) plus 33⅓ per
cent.

(f) On syndicate shares—2½ per cent on sale price.

(g) Rights to New Issues—The executive shall be empowered
to fix a rate of brokerage in respect of any particular
issue or issues, but unless so fixed the rate shall be:

To Sellers—The brokerage shall be double the rates prescribed
in paragraphs (d), (e), and (f) above calculated on the sale
price of the rights, providing however, that if the price of the
rights be not less than 5s. nor more than 7s. the brokerage
shall be 3d. per right.