2136
THE NEW ZEALAND GAZETTE
No. 98

11.076 Finance Companies, Merchant Banks, official dealers in the short term money market and their subsidiary or parent companies.

11.08 Members are not permitted to approach directors or officers of any body mentioned in Rule 11.07 for the purpose of obtaining an introduction to shareholders or holders of other classes of quoted securities; or for the purpose of enquiring from such a director or officer the names of possible buyers or sellers of quoted securities issued by the body; or for the purpose of utilising in any way the services of such a director or officer to initiate business other than in quoted securities owned by the body; provided that the provisions of this Rule shall not restrict an approach by a member to a company or other body to submit a proposal relating to the capital or loan securities of that body.

11.09 No member shall advertise in any manner whatsoever in connection with sharebroking business without first obtaining the approval of the Committee of his regional exchange that the proposed advertisement is in accordance with these Rules and regulations.

11.091 A member may advertise by way of a card which has been approved by the Committee of his regional exchange and which contains any or all of the following:

The member’s full name and the full name of his firm, the full names of his partners, if any, the fact that he is a stock and sharebroker and a member of the Exchange, his street address, post office box number, telephone number, and telegraphic and telex address and a list of the services offered by the firm.

11.10 No member may solicit clients or business by such means as personal canvass, circular, or the undignified display of unduly large name plates or painted or illuminated signs.

11.11 A member or his firm may issue clients with a factual or objectively worded account of the services available from the firm. Such a communication may also be made to a non-client in response to any unsolicited request.

12.0 Listing

12.01 Right of Quotation—The right of quotation on the official list shall be granted only by the Exchange and upon such terms and conditions as the Executive may generally or in any particular case from time to time determine.

12.011 Notwithstanding the foregoing the Executive may delegate to the Executive Director or other officer or officers of the Exchange (subject to such conditions as it shall from time to time determine) a general power to grant such right of quotation in respect of any securities where the general requirements and conditions from time to time laid down by the Executive as a condition precedent to the right of quotation on the official list have been complied with.

12.02 A company desiring to have its equity or loan securities or any class or classes thereof granted the right of quotation on the official list shall make application in that behalf to the Executive Office of the Exchange and pay the fee from time to time prescribed by the Executive. The Exchange may, without assigning any reason, refuse to grant such securities or any class of such securities the right of quotation on the official list, and similarly may at any future time suspend or cancel such right of quotation.

12.021 Such right shall also be cancelled when the Exchange is so requested by the company.

12.03 The Exchange may grant by way of courtesy and either with or without payment of any fee the right of quotation on the official list of any class of shares of a company registered outside New Zealand in respect of which the right of quotation on its official list has been granted by a stock exchange, outside New Zealand, recognised by the Exchange.

12.04 Where a prospectus states that listing has been applied for no member shall deal in the securities concerned until they have been listed by the Exchange or listing has been refused.

13.0 Prospects

13.01 No member of the Exchange shall act as broker to, or be associated with any flotation where a prospectus or other document soliciting application for shares or other securities, or capable of promoting inquiries for the shares or other securities, of a particular company is issued to persons other than the directors or employees of a company or their wives unless consent of the Executive in that behalf has first been given. In considering an application for consent under this Rule, the Executive shall have regard to whether the requirements of the general law and the rules, regulations and listing requirements of the Exchange have been or are likely to be complied with, the standing and repute of the issuer and such other matters as the Executive may consider to be relevant in the interests of the investing public and the standing of members.

13.011 Where application for such consent is made by a member, it shall be made to the Executive.

13.012 Where application for such consent is made by a non-member, it shall first be made to the chairman of the regional exchange nearest the head office of the company concerned. The chairman shall arrange for a member, acceptable to the company, to act for the purpose of ensuring compliance with all the requirements of the Exchange but such member need not be named in the documentation and he may charge a fee for the service. The application should then be forwarded to the Executive in the usual way.

13.013 Such application shall be accompanied by such fee as may be prescribed from time to time by the Executive.

13.014 The word “flotation” where it is used herein shall not include the issue of debentures or stock by the New Zealand Government or by a local body within New Zealand, nor shall it have any application to the formation of a private company nor to the increasing of the capital of a private company.

13.02 A member shall not without the consent of the Executive act as broker for a company in conjunction with anyone other than a member, but a consent given in this behalf shall be deemed to be an authority for all other members to so act. In considering an application for consent under this provision, the Executive shall have regard to the standing and repute of the non-member and the best interests of the Exchange and its members in furthering the objects of the Exchange.

13.03 Where a member has sought and been granted permission to act as a broker in connection with a non-member then such member shall be responsible for any action by the non-member which, if committed by the member so acting, would have been a breach of these Rules or any of the regulations made hereunder.

13.04 A consent given to any one member pursuant to Rule 13.01 to act as broker to, or be associated with a flotation, shall be deemed to be authority for all other members to be associated with that flotation, but shall not confer upon such other members any right to demand to be allowed to place a portion of the issue.

13.05 In each case in which consent to act as broker to or to be associated with any flotation is given pursuant to Rule 13.01 unless the Executive in granting such consent shall (in any particular case) direct otherwise, there shall be endorsed upon the relevant prospectus or other document soliciting applications for shares or capable of promoting inquiries for the shares, the following endorsement, “The New Zealand Stock Exchange has authorised members to act in this issue.”

14.0 Underwriting

14.01 Upon receipt of an application for consent pursuant to Rule 13.01 for a member to act in a flotation which he is underwriting whether wholly or in part or in conjunction with any other person, the Executive may request the inspector appointed under Rule 23.04 to verify, by examination of the records of the applicant, the details contained in the application insofar as they relate to the underwriting of the flotation and to report to the regional exchange committee on the accuracy of such application with any comments which he considers may affect that committee’s consideration of the application. In considering the application, the committee shall satisfy itself that the obligations likely to devolve upon the member are within his financial capacity. Application for such consent shall be made in the form from time to time prescribed by the Executive. In considering such application, the committee shall satisfy itself that the obligations likely to devolve upon the member are within his financial capacity. The committee may require the Inspector appointed under Rule 23.04 to make the same verification and report as are referred to in Rule 14.01.

14.02 No member shall underwrite local body loans without the consent of the committee of his regional exchange. Application for such consent shall be made in the form from time to time prescribed by the Executive. In considering such application, the committee shall satisfy itself that the obligations likely to devolve upon the member are within his financial capacity.

14.03 A member shall not without the consent of the Executive act as underwriter for a company in conjunction with