4130 NEW ZEALAND GAZETTE No. 156

limiting the power of the Board to satisfy itself with regard to this requirement, it may accept references from at least two suitable persons (other than persons connected with the member firm then employing the applicant) as evidence of the applicant’s intentions in this matter;

(b) The person has delivered to the Board a statutory declaration stating that the person is a fit and proper person without record of dishonest or fraudulent activities, and in particular stating whether or not he has:

(i) been excluded from any other organisation which is equally committed to high standards of professional conduct; or

(ii) committed an act of bankruptcy; or

(iii) been of unsound mind; or

(iv) been prohibited from being a director or promoter of, or managing, a company; or

(v) been found liable for insider trading or any other breach of the provisions of the Securities Amendment Act 1988, or for an offence under the Companies Act 1955 or Companies Act 1993 or other companies or securities legislation; or

(vi) been an officer of a company that has been ordered by the Court to be wound up or put in liquidation, in each case because it is insolvent while that person was an officer of the company;

(c) The person provides in writing and, if required by the Board, by statutory declaration, such other information in addition to that specified above as the Board may request; and

(d) Such fees as are set by the Board as a condition of membership have been paid.

6. Requirements for admission of member firms

6.1 The Board shall admit as a member firm of the Exchange a firm that has applied for membership in accordance with Rule 4 if:

(a) (If a company) the firm provides evidence satisfactory to the Board to the effect that:

(i) The requirements of Rule 8.6 are met;

(ii) It holds a sharebroker’s licence; and

(iii) It will at all times fully observe the Rules and will carry out its responsibilities as a member firm and stockbroker honestly and diligently.

(b) Each principal of the firm and (if a company) each director has delivered to the Board a statutory declaration stating that:

(i) (if a company) the requirements of Rule 8.6 are met; and

(ii) in any case, he will ensure that the firm will at all times fully observe the Rules;

(c) Such fees as are set by the Board as a condition of membership have been paid; and

(d) The requirements for a stockbroking office are met in accordance with Rule 9.

7. Admission to membership

7.1 Board considers application: The Board shall consider all applications for membership of the Exchange. The Board shall review each application for membership and satisfy itself that the requirements of all relevant Rules, including Rules 4, 5, 6, 8 and 9 (as appropriate), have been met.

7.2 Appeal of application decision: An unsuccessful applicant for membership of the Exchange shall have the right of appeal against this decision.

7.3 Membership Appeal Committee: The Board shall establish a standing committee, to be known as the Membership Appeal Committee, to hear any appeal against an unsuccessful membership application.

7.4 Composition of Membership Appeal Committee: The Membership Appeal Committee shall consist of three persons of suitable standing in the business community, at least one of whom shall be an individual full member of the Exchange, and at least one of whom shall be a barrister or solicitor of not less than seven years standing currently in practice. The Disciplinary Committee referred to in Rule 18 may, at any time at the option of the Board, and for such period as the Board determines, serve as, and act in the capacity of, the Membership Appeal Committee. The quorum for a meeting of the Membership Appeal Committee shall be 3 persons.

7.5 Remuneration of Membership Appeal Committee: The remuneration and expenses of the members of the Membership Appeal Committee incurred in carrying out their duties shall be determined by the Board and shall be paid by the Exchange.

7.6 Appointments to the Membership Appeal Committee: Except where the Board determines pursuant to Rule 7.4 that the Disciplinary Committee shall act as the Membership Appeal Committee, appointments to the Membership Appeal Committee shall be made by the Board and shall be for a maximum term of three years, provided that the Board may reappoint any member of this committee for a further term or terms. The persons who were members of the Membership Appeal Committee under the rules of the Exchange in force immediately prior to the coming into force of these Rules shall continue in such office in accordance with the terms of their respective appointments.

7.7 Review of membership of Membership Appeal Committee: The Board shall have power to review the membership of the Membership Appeal Committee at any time and shall have power to remove or replace any persons then serving upon any reasonable ground for doing so. As examples of reasonable grounds (but without in any way limiting the right of the Board to decide that a particular ground is reasonable), a person may be removed and replaced who becomes of unsound mind or is declared bankrupt or makes any arrangement or composition with his creditors.

7.8 Costs of appeal: The Membership Appeal Committee shall have the power to make any ruling regarding the costs of the appeal which it deems appropriate. It shall be a condition of any appeal that, at the time the appeal is lodged, the appellant gives an undertaking acceptable to the Membership Appeal Committee regarding the payment of costs in the event that they are awarded against him.

7.9 Proceedings of Membership Appeal Committee: The Membership Appeal Committee may, in lieu of a meeting, transact business by letter, facsimile, telex, telephone or any commonly used form of electronic communication. Unless otherwise provided by these Rules, the Membership Appeal Committee shall have the power to regulate its proceedings in whatever manner it deems appropriate.

8. Conditions of Membership

8.1 Conduct of members: Every member shall:

(a) At all times observe proper ethical standards and act with honesty, integrity, fairness, due skill and care, diligence and efficiency and within the member’s competence;

(b) Refrain from any action, conduct, matter or thing which may be detrimental to the well-being or proper conduct of the Exchange, or which may discredit the