4128
NEW ZEALAND GAZETTE
No. 156

The New Zealand Stock Exchange Rules 1996
MICHAEL HARDIE BOYS, Governor-General
At Wellington this 21st day of October 1996

Present:

His Excellency the Governor-General in Council
Pursuant to section 7 (3) of the Sharebrokers Amendment Act 1981, His 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.

ANALYSIS

1. Interpretation
2. Objects
3. Membership
4. Application for Membership
5. Requirements for Admission of Individual Members
6. Requirements for Admission of Member Firms
7. Admission to Membership
8. Conditions of Membership
9. Stockbroking Offices
10. Board of Directors
11. General Meetings of Members
12. Listing
13. Authority to Act
14. Underwriting
15. Contracts
16. Delivery and Settlement
17. Trading Activities and Transaction Reporting
18. Discipline
19. Disputes
20. Defaulting Members
21. Suspension of Loss of Membership
22. Member’s accounts, audit and supply of information
23. Inspector of the Exchange
24. Capital Adequacy Requirements
25. Fidelity Guarantee Fund
26. Short Sales
27. Miscellaneous and Common Seal
28. Financial
29. Amendment to Rules

NEW ZEALAND STOCK EXCHANGE RULES 1996

1. Interpretation
1.1 Definitions: In these Rules:

“Act” means the Sharebrokers Amendment Act 1981.

“Approved Security” has the meaning set out in Rule 26.2(b).

“Board” means the Board of Directors of the Exchange as constituted by Rules 10.1 and 10.2.

“Chairman” means the Chairman of the Board.

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

“Exchange” means the New Zealand Stock Exchange established by section 3 of the Act.

“Fidelity Guarantee Fund” has the meaning set out in Rule 25.

“Full time” means employment predominantly in the stockbroking business of a member firm.

“Individual associate member” means an individual member who has met the requirements for associate membership set out in Rule 5.

“Individual full member” means:
(a) an individual member who has met the requirements for full membership set out in Rule 5; and
(b) all members of the Exchange who were individual members under the rules of the Exchange in force immediately prior to the coming into force of these Rules.

“Individual member” means a natural person who is either an individual associate member of the Exchange, or an individual full member of the Exchange.

“Inspector” has the meaning set out in Rule 23.

“Listing Rules” means the New Zealand Stock Exchange Listing Rules, as amended from time to time.

“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 10.29.

“Managing Principal” in relation to a member firm means an individual full member who is a principal of a member firm and is responsible for carrying out the duties of the managing director or managing partner, whichever is appropriate.

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

“Member firm” means:
(a) a member which is a company; or
(b) a partnership of individual full members, or of companies, or of an individual full member or members and another person or persons; or
(c) an individual full member in practice as a sole trader;

in each case who has met the requirements for admission of member firms set out in Rule 6; and
(d) all company members of the Exchange, all partnerships of individual members of the Exchange, and all individual members of the Exchange in practice as sole traders, in each case who were members of the Exchange under the rules of the Exchange in force immediately prior to the coming into force of these Rules.

“Membership Appeal Committee” means the committee established by the Board pursuant to Rule 7.3.

“Personal place of business” means:
(a) in relation to an individual full member, the stockbroking office where the member ordinarily works; and
(b) in relation to a member firm, the registered office (if a company) or the principal stockbroking office where it conducts business (if a sole trader or a partnership).

“Principal” means an individual full member:
(a) in practice as a sole trader; or
(b) who is a partner, director or shareholder of a member firm; or
(c) who is a director of, or controlling shareholder in, a company which holds directly or indirectly