31 AUGUST
THE NEW ZEALAND GAZETTE
2427

partnership are members of the Exchange, or the partnership
has been dissolved, the member receiving such notice shall be
deemed to have retired from the Exchange and to be no
longer a member.

Rights of Members

51. The rights and privileges of every member shall be
    personal to himself and shall not be transferable by operation
    of law nor by his own act.

Interest in Assets

52. 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.

Defaulters

53. 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 exercise this power of temporary
    suspension without calling on or hearing the member
    involved.

54. 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.

55. 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 recommendations and expel the member so
    brought before them or deal with them by fine or suspension
    from membership.

56. 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.

57. 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.

58. 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.

59. Members who are creditors of a member in default
    shall have a preferential claim on all surpluses in the hand
    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.

60. The Committee shall distribute as soon as possible
    amongst members who are 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.

Clerks

61. The Committee may, at the request of a member or a
    firm, grant permission to a clerk in the service of such member
    or firm to attend the trading meetings of the Exchange for
    the purpose of making quotations, or purchasing or selling
    shares on behalf of such member or firm or such other purposes
    as the Committee fixes from time to time, and may
    at any time of its own accord and shall at the request of such
    member or firm withdraw or cancel such permission. While
    such permission subsists, such clerk shall be deemed for the
    purposes of these rules to be an authorised clerk of the
    member or firm in whose service he is.

62. An authorised clerk while in attendance at a trading
    or other meeting shall subject as hereinafter provided in these
    rules, be deemed to be the agent for all the purposes mentioned
    in rule 61 of the member or firm in whose service he
    is and such member or firm shall be responsible for all the
    transactions of such clerk.

63. A clerk shall not be eligible for admission unless he
    be at least eighteen (18) years of age.

64. 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.

65. A member may by a letter addressed to the Secretary
    withdraw the authority for his clerk to act but his responsibility
    shall continue until such withdrawal shall have been
    notified to the members at a trading meeting or by written
    notice from the Secretary.

Commission

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

Trading Meetings

67. The trading meetings or official call 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, receive and
    record quotations, and to carry on such other businesses as
    the Committee may authorise from time to time. The quorum
    for a trading meeting shall consist of representatives of one-quarter
    of the member firms of the Exchange. Such representative
    may be a member or an authorised clerk of the
    member firm. Each member who carries on business individually
    and each partnership of members shall be considered
    a separate member firm for the purpose of this rule. Trading
    meetings shall be presided over by the Chairman or in his
    absence by the Vice-Chairman or should either be absent or
    not wish to preside then by such Committee member or member
    or employee of the Exchange as may be appointed from
    time to time by the Chairman.

68. The Chairman or other presiding officer of a trading
    meeting in regulating the order and manner in which the
    business of the meeting is conducted may from time to time
    give rulings as to the customary practice or usage of the
    Exchange in relation to maintaining quotations, priority of
    buyers and sellers, reopening business in a particular stock,
    and as to all other matters necessary for the orderly and
    expeditious conduct of the meeting. The ruling by the Chairman
    or of another presiding officer if confirmed by the Chairman
    shall be final and shall supersede any previous ruling
    given on the same point until any other ruling is given by a
    general meeting of the Exchange.

69. Save as the Committee may otherwise provide by
    regulation time bargains shall not be made at a trading meeting
    except at the conclusion of the ordinary business. Unless
    the Chairman otherwise rules any member may then at the
    conclusion of the meeting name any stock or shares in which
    he wishes to make a time quotation and such stock or shares
    shall then be called for time transactions only.

70. If any report of a sale be challenged the Chairman shall
    as soon as practicable take steps to satisfy himself as to the
    bona fides of the report by examination of the books, papers,
    or office records of the member or in such other manner as
    the Chairman deems appropriate. The Chairman shall report
    the result of his investigation either to the Committee in the
    first instance or to a trading meeting or general meeting of the
    Exchange as he deems appropriate. Any member refusing an
    inspection of his books, papers, or office records shall have
    committed a breach of these rules. The refusal shall be reported
    by the Chairman forthwith to the Committee and the
    Committee may treat such refusal as evidence of the member
    being guilty of making a false quotation and engaging in
    conduct unworthy of a member.

71. The general conduct of trading meetings shall be
    subject to the control of the Committee which, having regard
    to changes in stockbroking practice, may from time to time
    make and promulgate regulations dealing with the conduct
    and mode of operation of trading meetings and the business
    to be transacted at such meetings, and such regulations upon
    adoption by a special resolution of members shall bind all
    members and a breach of the regulations, if not otherwise
    dealt with under the rules, shall carry a penalty of up to $50.