NEW ZEALAND GAZETTE

No. 182

Sharebrokers Amendment Act 1981

The New Zealand Stock Exchange Rules 1993

CATHERINE A. TIZARD, Governor-General

At Wellington this 13th day of December 1993

Present:
THE RIGHT HON. DON MCKINNON PRESIDING IN COUNCIL

Pursuant to section 7 (3) of the Sharebrokers Amendment Act 1981, Her Excellency the Governor-General, acting by and with the advice and consent of the Executive Council, hereby approves the following Rules of the New Zealand Stock Exchange, being the Rules adopted by the New Zealand Stock Exchange in 1991 as subsequently amended and renumbered.

Rules

Index

1. Interpretation
2. Objects
3. Membership
4. Application for Membership
5. Admission to Membership
6. Conditions of Membership
7. Sharebroking Offices
8. Board of Directors
9. General Meetings
10. Conduct of Members
11. Listing
12. Prospectuses
13. Underwriting
14. Quotations and Sales Reporting
15. Contracts
16. Delivery and Settlement
17. Trading Activities
18. Discipline
19. Disputes
20. Defaulting Members
21. Members’ Books of Account and Audit
22. Capital Adequacy Requirements
23. Fidelity Guarantee Fund
24. Short Sales
25. Miscellaneous and Common Seal
26. Financial
27. Amendment to Rules

1. Interpretation

1 (1) In these Rules and any Regulations made hereunder—

“Board” means the Board of Directors of the Exchange as constituted by Rule 8 (1).

“Chairman” means the Chairman of the Board.

“company” means a company under the Companies Act 1955 or the Companies Act 1993.

“company member” means a member of the Exchange that is a company.

“Deputy Chairman” means the Deputy Chairman of the Board.

“Exchange” or “N.Z. Stock Exchange” means the New Zealand Stock Exchange established by section 3 of the Sharebrokers Amendment Act 1981.

“Managing Director” means the managing director of the Exchange or the person for the time being carrying out the duties of the managing director as provided in Rule 8 (27).

“Managing Principal”, in relation to a sharebroking firm other than a member in practice as a sole trader, means a member who is a principal of a sharebroking firm and is responsible for carrying out the duties of the Managing Director or Managing Partner, whichever is appropriate.

“individual member” means a member of the Exchange who is a natural person and includes those members formerly classified as country members.

“member” means a member of the Exchange and includes both individual members and company members, except where a contrary intention appears.

“Membership Appeal Committee” means the Committee established by the Board in terms of Rule 5(3).

“personal place of business” means:

(a) In relation to an individual member, the sharebroking office where the member ordinarily works; and

(b) In relation to a company member, the registered office of that member.

“Principal” means:

(a) Any member in practice as a sole trader;

(b) Any member who is a partner, director or shareholder of a sharebroking firm;

(c) Any member who is a director of or controlling shareholder in a company which holds directly or indirectly more than 25% of the issued capital of a company member;

(d) Any member who has or has had at any time a relationship with a sharebroking firm giving that member the right or opportunity to influence or control the direction of that firm which, in the opinion of the Board, would reasonably require that member to be regarded at the material time as a principal of that sharebroking firm.

“regulations” means the regulations made by the Board under Rule 8 (20) and for the time being in force.

“share” or “shares” shall include stock and vice versa.

“sharebroker” shall include stockbroker and vice versa.

“sharebroking” shall include stockbroking and vice versa.

“sharebroking firm” means a company member, or a partnership of individual members, or a member in practice as a sole trader.

“sharebroking office” means any place from which a sharebroking business is conducted including the provision of advice or the acceptance or lodgement of orders for the purchase or sale of securities.

“The Act” means the Sharebrokers Amendment Act 1981 or any statutory modification thereof.

1 (2) Any marginal notes or headings shall not affect the construction of these Rules.

1 (3) Words importing persons include firms and corporations unless the context otherwise requires.

1 (4) Words importing one gender shall include the other genders.

1 (5) Words importing the singular number include the plural number also, and vice versa.