subject to the purchaser being duly elected. The exercise by
the Committee of the power contained in this rule shall
supersede all other rights of transfer of membership. The
proceeds of the sale of membership shall be held by the
Committee and be distributed in the same manner as the
asset value of a membership interests forfeited to the
Exchange on the insolvency of a member.

62. On the sale of a membership interests by the Committee
    whether under rule 61 or otherwise the purchaser shall apply
    for admission in the following form:

To The Secretary of the Auckland Stock Exchange.

Sir,

Having purchased from the Committee of the Auckland
Stock Exchange the membership interest of ... for
the sum of $... 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 am etc.,

Interest in Assets

63. Members who resign or cease to be members from any
    cause whatever or persons claiming through them or the
    executors or administrators of any deceased member shall
    have no claim on the assets of the Exchange save as is
    provided hereunder in this rule.

Upon the acceptance of the resignation of any member or
upon the death of any such member or upon his ceasing to
be a member pursuant to rule 57 relating to mentally defective
members he or his legal representatives shall be entitled
subject to the provisions of these rules to receive from the
Exchange the assets value of his membership interest. Such
value shall be the sum of money the member would have
received if immediately before ceasing to be a member the
tangible assets of the Exchange had been sold at the fair
market price thereof and after its debts and liabilities had
been paid or satisfied the surplus had been distributed equally
amongst the then members.

The Exchange shall fix the asset value and in doing so
may have regard to any valuation of securities held by the
Exchange and the book value of furniture and fittings but in
all cases the decision of the Exchange as to the asset value
shall be final and conclusive. In lieu of paying cash the
Exchange may satisfy any sum payable by transferring any
shares debentures bonds or like securities to the person or
persons entitled at the market value thereof at the time of
transfer or delivery such market value being the value of the
securities as quoted on the Exchange or if not quoted then as
fixed by the Exchange.

The Exchange shall be entitled to deduct from the sum
payable under this rule any amount of any nature due by
the member in respect of whom the sum is payable whether to
the Exchange the Chairman or to any other member and any
further amount which the Committee may think necessary
or equitable to adjust any claims whatsoever that may arise
out of his membership.

Where a resigning member or his legal representatives have
exercised the right under these rules to nominate a candidate
and such candidate has been elected then no sum shall be
due under this rule to the resigning member or his legal
representatives but he or they shall be deemed to have
assigned to the newly elected member the asset value of the
membership interest in respect of which the newly elected
member was nominated.

Any decision to be made by the Exchange under this rule
shall be made by or pursuant to a resolution passed at a
general meeting. This rule shall not affect the right of the
Exchange to make donations and otherwise deal with its funds
in as full and unrestricted a manner as if this rule had not
been adopted.

Defaulters

64. Where in the opinion of the Committee a member is
    under financial stress and is likely to have difficulty in meeting
    his liabilities or in the Committee's opinion other circumstances
    require the prompt suspension of the member from trading
    the Committee may immediately temporarily suspend such
    member from membership of the Exchange for such limited
    period as the Committee in its absolute discretion thinks fit.
    The Committee may exercise this power of temporary
    suspension without calling on or hearing the member involved.

65. A member shall be declared a defaulter by the Committee if he has committed an act of bankruptcy or is
    insolvent or in the opinion of the Committee the member
    is in difficulties and has failed or is likely to fail to meet
    his liabilities and upon such declaration being made the
    defaulting member shall be automatically suspended from
    all trading and from the exercise of all rights of membership
    of the Exchange and notice of the name of the defaulter shall
    be given forthwith to all members.

66. Where any member has failed to pay when due any
    debt incurred by him to another member the Committee may
    suspend such member for such period as it thinks fit and may
    also censure fine or recommend the member for expulsion.
    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.

67. The Committee shall have power to order that all open
    transactions including time bargains between any member
    declared a defaulter 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 defaulter such stocks 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 personal property of the Chairman.
    Members shall without delay render full statements of
    account to the Committee.

68. In case any member shall make default in payment of
    any amount payable to any other member the last mentioned
    member shall give notice in writing of such default to the
    Chairman or in his absence to the Vice-Chairman within 24
    hours after such default.

69. 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.

70. Members who are 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.

71. 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.

Forfeiture on Expulsion or Insolvency

72. Any member who is expelled from the Exchange shall
    forfeit to the Exchange all interest whatsoever in his membership. Any member who is found by the Committee to have
    become insolvent or to have been adjudicated bankrupt or
    to have assigned his estate for the benefit of or to have
    compounded with his creditors shall upon such finding by the
    Committee cease to be a member and shall forfeit to the
    Exchange all interest whatsoever in his membership. Upon
    such forfeiture for expulsion insolvency or otherwise the
    member shall cease to have any claim whatever on or to the
    property or funds of the Exchange. The Exchange shall fix
    the asset value of the membership interest of such member
    as at the date of forfeiture of membership and upon such
    value being fixed the Committee shall apply the sum of money
    representing the asset value of the membership interest in
    the following manner; first in payment to the Exchange of
    a sum equal to the transfer fee that would have been due had
    the seat been sold and of any subscription fine or other
    liability owing to the Exchange by the former member,
    secondly in payment of the claims of any member or members
    who at the time of such forfeiture were creditors of the
    former member, and thirdly in paying any balance to the
    former member or his personal representatives or assigns or
    widow or next of kin as the Committee in its discretion shall
    fix and the decision of the Committee as to the person or
    persons to whom the balance be paid shall be final and binding
    on all persons. The Exchange may also authorise the Com-
    mittee to sell the membership interest of the former member
    and the proceeds received by the Committee from such sale
    over and above the asset value of the membership interest
    as fixed as at forfeiture shall be dealt with as the Exchange
    directs. A member who has forfeited his membership may in
    special circumstances be reinstated by a ballot of members