4136 NEW ZEALAND GAZETTE No. 156

(a) The Board shall appoint a Disciplinary Committee consisting of:

(i) a barrister of not less than seven years standing currently in practice who shall be chairman;

(ii) at least one, and not more than three, individual full members, none of whom shall be a member of the Board; and

(iii) one member of the public (not a barrister or solicitor or an individual member) to be the independent member.

The persons appointed as members of the Disciplinary Committee under the rules of the Exchange in force immediately prior to the coming into force of these Rules shall continue in office in accordance with the terms of their respective appointments.

(b) Subject to Rules 18.1(e) and 18.1(f), each appointment of a chairman shall be for a term of five years, but the Board may reappoint any chairman for a further term or terms at its complete discretion.

(c) Subject to Rules 18.1(e) and 18.1(f), each appointment of a member of the Disciplinary Committee (other than the independent member) shall be for a term of three years, provided that the Board may at its complete discretion appoint a retiring member for a further term or terms.

(d) Each appointment of the independent member shall be for a period of one year, but may also be renewed.

(e) The Board may from time to time remove from office any member of the Disciplinary Committee or fill any vacancy in its membership or appoint any additional member within the limits of Rule 18.1(a).

(f) No person who has reached the age of 70 years shall be eligible for appointment as a member of the Disciplinary Committee. Any member of the Disciplinary Committee reaching that age shall retire from the Disciplinary Committee at the conclusion of the next annual meeting of the Exchange and shall not be eligible for reappointment.

(g) The remuneration and expenses of the Disciplinary Committee shall be as determined by the Board and shall be paid by the Exchange.

(h) The appointment of the independent member shall be advised by the Exchange to the Securities Commission, to whom the independent member shall report at least once in each year.

18.2 Quorum:

(a) The quorum for a meeting of the Disciplinary Committee shall consist of the chairman and at least two other members of the Committee, one of whom shall be the independent member.

(b) If the chairman of the Disciplinary Committee, or the independent member or any other member through absence or any other cause, is unable to act, the Board shall appoint a suitably qualified person to act in his place during the period of his inability to act.

18.3 Members’ interests:

(a) At the hearing of any charge against a member, no member of the Disciplinary Committee who is concerned or implicated in or whose member firm is concerned or implicated in that charge shall be eligible to attend any meeting of the Disciplinary Committee in respect of that charge.

(b) The chairman or the independent member shall as soon as is practicable after being advised of any charge, declare any interest in connection with the parties to, or the subject matter of, the charge. In such a case, he shall not be eligible to attend any hearing of that charge and the Board shall appoint another chairman or independent member for that hearing only.

18.4 Powers of the Disciplinary Committee:

(a) Without limiting or derogating from any other provisions of these Rules, the Disciplinary Committee shall have power to hear any charge made against any member and referred to it by the Board or its delegate.

(b) The Disciplinary Committee may, by notice in writing signed by its chairman or by any person nominated by its chairman to act as its secretary, require any person (including any officer or employee of a member firm) to attend and give evidence before it at the hearing of a charge and/or to produce for inspection all books, records, tapes, documents, and any information held on any other media that are in the custody or under the control of the person relating to the subject matter of any such hearing.

(c) The Disciplinary Committee shall have power to enquire into any charge by the Board that a member:

(i) is in partnership with a non-member; or

(ii) has engaged as an employee a person; or

(iii) has entered into an association or contractual relationship with another party; or

(iv) has engaged as a principal a person;

in each case, who has been guilty of conduct which if committed by a member would justify the Disciplinary Committee imposing on him any of the penalties referred to in Rule 18.8.

(d) If the Disciplinary Committee shall find any charge as contemplated by Rule 18.4(c) proved, it may order:

(i) in the case of a non-member partner, that the partnership be dissolved; or

(ii) in the case of an employee, that such employee be dismissed; or

(iii) in the case of an association or contractual relationship, that it be terminated; or

(iv) in the case of a principal, that such person’s engagement be terminated.

(e) If any member fails to carry out an order of the Disciplinary Committee made under Rule 18.4(d), the Disciplinary Committee may suspend him until the order is complied with.

(f) At any time after a charge has been made against any member, the Disciplinary Committee may of its own motion and without the necessity of giving any prior notice to the member, make an order suspending his membership until the charge has been heard and disposed of. The Disciplinary Committee shall give public notice of the fact of interim suspension unless there are extraordinary circumstances which justify postponement of such notice.

(g) The member in respect of whom any interim suspension order is made may at any time apply to the Disciplinary Committee for the revocation of the order and the Disciplinary Committee may grant, on such terms as it thinks fit, or refuse, any such application.

(h) A member who has been suspended under Rule 18.8 may apply to the Disciplinary Committee for revocation of his suspension and the Disciplinary Committee may grant, on such terms as it thinks fit, or refuse, such application.

(i) The Disciplinary Committee may require as a condition of granting an application under Rule 18.4(h) that the member pay, as well as his current