have the specific or general authority of the members. All
moneys received shall be paid into a bank account and
payments shall be made by cheques drawn on such account.

36. Cheques drawn on or against any funds of the Exchange
    shall be signed by any two of the following four persons—
    the Chairman, the Vice-Chairman, the Secretary, and such
    fourth person as may be specially appointed by the Committee
    for the purpose.

37. The Committee shall invest the funds of the Exchange
    in such securities or other forms of investment as the Com-
    mittee may in their absolute discretion from time to time
    deem advisable whether or not such securities or investments
    are authorised by law for the investment of trust funds. In
    particular the Committee may invest funds of the Exchange
    in the purchase of freehold or leasehold interests in land
    for the purpose of providing a building or rooms for the
    carrying out of activities of the Exchange or for such other
    purpose as the members may authorise. Securities or other
    property of the Exchange may be held in the name of the
    Exchange or on behalf of the Exchange by a trustee company
    or other trustees as the Committee may from time to time
    appoint. The Committee if specifically authorised by a special
    resolution of members may pledge, charge, or mortgage all
    or any of the assets of the Exchange upon such terms and
    for such purposes as the Committee decides.

38. The Exchange may at any time, with the sanction of
    a special resolution of members divide amongst its members
    any part of its assets not exceeding in amount or value the
    excess of the total assets of the Exchange over its liabilities.
    If the Exchange so decides, it may retain sufficient of the
    the cash or other assets out of the share of any member upon
    any such distribution to pay or satisfy (so far as the same
    will extend) any moneys payable or owing by that member
    to the Exchange or to any member, and the cash and other
    assets retained shall be applied towards payment of the
    moneys so owing accordingly.

Entrance Fee

39. An entrance fee of such sum as the Exchange may from
    time to time determine in general meeting shall be paid by
    a candidate for membership prior to any ballot being taken
    upon his application. The entrance fee of a candidate who
    is, or has been within 3 calendar months of his application
    for admission to membership, a non-member partner or an
    authorised clerk in respect of whom at least 24 clerk’s fees
    have been paid, shall be reduced by such sum as the meeting
    may determine. Any candidate for admission by virtue of the
    purchase of a membership interest shall not be required to
    pay an entrance fee but in lieu thereof shall pay the transfer
    fee provided in rule 58. In addition to payment on the
    entrance fee a candidate other than one by virtue of purchase
    of a membership interest, shall at the same time pay such
    sum as the Exchange in general meeting shall estimate that
    the candidate would have been entitled to receive under
    rule 63 if he had been a member and his resignation had
    been given and accepted on the date of the receipt by the
    Secretary of the application for membership. In the event
    of a candidate not being elected the money paid shall be
    returned to him. This rule shall not prevent the Exchange
    reinstating a former member without payment pursuant to
    any other rule in force relating to reinstatement.

Subscriptions

40. To procure funds for the Exchange the Committee may
    in its discretion from time to time by resolution make a levy
    on members and approved partners of such amount per head
    as it thinks fit. Notice of the making of the levy and the
    amount thereof shall be placed on the official notice board
    of the Exchange and a copy of the notice shall be posted
    to each member or left in his delivery box by the Secretary
    as soon as practicable. The levy shall become due and payable
    on the day following the placing of the notice on the notice
    board and such placing shall be deemed notice to every
    member and approved partner of the making of the levy. A
    member shall be liable to the Exchange for payment of any
    levy or fee due by an approved partner of such member
    as if the levy or fee was due by the member himself.

The levy on any member or approved partner shall auto-
matically be increased by a penalty of 10 percent if the
levy is not paid to the office of the Exchange or sent by post
and post-marked on or before the day 1 calendar month
after the date of placing of the notice on the notice board,
unless the Committee upon written application waives the
penalty because of special circumstances.

A new member or approved partner shall be liable to pay
the levy last made prior to his election or approval, but in
the same financial year, as if he had been a member or
approved partner at the date of the notification of the resolu-
tion making such levy, and shall be deemed to have received
notice of the levy on the day of his election or approval,
as the case may be, provided always that in any such case
the Committee may if it considers it equitable so to do, remit
the whole or any part of such levy.

41. The Committee shall in respect of each calendar month
    of the financial year fix a fee (hereinafter referred to as a
    clerk's fee) to be paid by every member or firm whose
    authorised clerk has at any time during such month attended
    an official meeting on his or their behalf for the purpose
    of making quotations or purchasing or selling shares. The fee
    for any month shall be fixed either during or at any time
    before such month and shall become due and payable on the
    last day of such month.

Notice of the fixing of a clerk's fee shall be deemed to
be given to members by placing notice of the resolution
fixing the fee on the official notice board of the Exchange.
The fixing of the fee shall also be announced at a trading
meeting by the presiding officer thereof. Where the employer
of an authorised clerk is a firm, the members thereof shall
be jointly and severally liable for any clerk's fee payable
in respect of such clerk. The Committee may if it thinks it
equitable, remit or reduce the amount of the clerk's fee in
any particular case.

42. If any levy, approved partner's levy, clerk's fee, or
    other moneys for which any member is liable to the Exchange
    shall not be paid within 4 calendar months of the due date
    thereof, the member shall immediately on the expiration
    of such period be deemed to be suspended from the privileges
    of membership, and shall continue so suspended until such
    levy fee or other money due shall be paid, and if it shall
    not be paid within 12 calendar months of the due date thereof,
    he shall, immediately upon the expiration of such period
    cease to be a member, and his interest in membership shall
    be forfeited to and become the property of the Exchange.

43. The membership interest of a resigning member, from
    the date of resignation until the election of his nominee, shall
    be subject to the same annual subscription as that of existing
    members during that period unless the members by resolution
    otherwise direct. A membership interest purchased by the
    Committee shall not be liable for the annual subscription
    whilst held by them.

Election of Members

44. Every candidate for admission to membership must be
    proposed by a member and seconded by another member
    and his name shall be submitted to the Committee. The
    Committee shall make inquiries as to the integrity, suitability,
    and financial standing of the candidate. Upon the Committee
    being satisfied as to the financial standing of the candidate
    it shall submit his name for election of the members. Notice
    of the name of the candidate, his proposer and seconder,
    and the time and place of the general meeting at which the
    ballot is to be taken shall be given to members in the manner
    provided for notices of general meetings not less than 14 days
    prior to the date of the meeting. Applications for admission
    to membership, except as otherwise provided, shall be in the
    following form:

To the Secretary of the Auckland
Stock Exchange

Sir,

I am desirous of being admitted a member of the
Auckland Stock Exchange, upon the terms of and under
and subject in all respects to its rules and regulations,
which now are or hereafter may be for the time being in
force.

I have read the rules as at this date, and am willing
to sign them when called upon to do so.

I undertake on notification of the total amount fixed
by the Exchange for the entrance fee and membership
to pay such amount to the Exchange prior to the ballot
on my membership.

45. Candidates for membership shall be elected by the
    members by secret ballot. A voting paper in the form
    prescribed by the Committee shall be issued to each member
    present at the meeting at which the ballot is held. Two
    members appointed by the meeting shall act as scrutineers
    and shall record the final result of the voting in writing.
    The scrutineers shall be the final judges of whether any
    paper is a valid one. No voting by proxy shall be allowed.
    One adverse vote in every five valid votes recorded shall
    exclude the candidate from election. No ballot shall be valid
    unless at least one-half of the members of the Exchange
    entitled to vote do actually register a vote but a member
    may mark his voting paper with the words "no vote" in
    which case he shall be deemed to have registered a vote, but
    his vote shall not be recorded either in favour of or adverse
    to the candidate.