4142

NEW ZEALAND GAZETTE

No. 156

unless such short sale is undertaken in compliance with good stockbroking practice.

26.2 Definitions: For the purposes of this Rule 26:

(a) the term “Approved Security” means any security which in the opinion of the Board has sufficient liquidity in the market and is from time to time designated as such by the Board;

(b) the term “short sale” means a sale of any Approved Security where at the time of the sale, the seller does not have a presently exercisable and unconditional right to vest the security in the buyer and related expressions shall have a corresponding meaning; and.

27. Miscellaneous and Common Seal

27.1 Appointment of odd lot dealers: Odd lot dealers shall be appointed to deal with sales of parcels of securities not amounting to a marketable parcel as defined by or under these Rules.

27.2 Members to protect buyer’s rights in respect of certain securities: Where existing security holders are given the right to apply for new securities offered to security holders prior to delivery of securities sold for cash, members shall take such action as may be required by good stockbroking practice to protect the rights of the buyers in respect of the securities so offered.

27.3 Members to protect buyer’s and seller’s rights in respect of dividend and other entitlements: Members shall take such action as may be required by good stockbroking practice to protect the rights of buyers and sellers in respect of entitlements to dividends, interest, or capital distributions and in regard to settlement.

27.4 Rights in respect of calls on securities being sold: The rights and obligations of buyers and sellers with regard to calls made on securities the subject of sale shall be as recognised by good stockbroking practice.

27.5 Securities transfers: Securities transfers as defined by the Securities Transfer Act 1991 must be used for all transactions in New Zealand registered securities and the Board may determine the procedures to be adopted with regard to the completion and processing of all such transfers.

27.6 Common seal: The Exchange shall have a common seal which shall be kept in the custody of the Managing Director and shall be used only by the authority of a resolution of the Board, and every instrument to which the common seal is affixed shall be signed by a member of the Board and countersigned by a second member of the Board.

28. Financial

28.1 Power to invest: The Board shall have power to invest the funds of the Exchange in such manner as it thinks fit.

28.2 Power to borrow: The Exchange shall have power to borrow or raise or secure the payment of money in such manner as the Board thinks fit, and may for that purpose mortgage/charge or otherwise encumber all or any of the assets of the Exchange.

28.3 Board to control funds: The control of the funds of the Exchange shall be vested in the Board.

28.4 Board may delegate: The Board may delegate to any member or members, authority to control, invest or use such part of the funds of the Exchange as it thinks fit.

29. Amendment to Rules

29.1 Requirements for alteration: These Rules or any of them may be altered (by way of rescission, amendment, addition, or otherwise) if:

(a) approved by a resolution passed by a 3/4ths majority of the votes cast by members entitled to vote at an annual or special meeting of members; and

(b) approved in accordance with Section 7(3) of the Act.

29.2 Notice of intention to propose an alteration: No resolution for alteration of these Rules or any of them shall be submitted to a meeting of members unless the same has been proposed by the Chairman, by the Board, or by a member and unless notice in writing of intention to submit such resolution shall have been given to the Managing Director within sufficient time to enable him to give the notice referred to in Rule 29.3.

29.3 Notice of proposed alteration: Fourteen days’ notice in writing of details of the proposed alteration shall be given by the Managing Director to the Board and to members.

29.4 Requirements for re-consideration of proposal: No proposed alteration if rejected by members shall, without the consent of the Board, be reconsidered by members for six calendar months from the date of the meeting at which it was rejected.

29.5 Timing of further alterations: Where a Rule is altered, no further alteration to the Rule shall, without the consent of the Board, be considered by members for six calendar months from the date on which such altered Rule took effect.

29.6 Effect of alteration: Any amendment or repeal of any of these Rules shall not affect the validity of any proceedings completed, action taken or decision made under the Rule or Rules so amended or repealed. Unless any transitional Rule is put in place, any proceedings commenced or action taken under a Rule being repealed or amended shall be completed according to the provisions of the Rule prior to its amendment or repeal.

29.7 Previous rules repealed: Upon the date these Rules are published in the Gazette, the New Zealand Stock Exchange Rules 1993 (as amended) and all previous rules approved under Section 7 of the Act shall be revoked.

MARIE SHROFF, Clerk of the Executive Council.

go6959

PUBLISHED BY AUTHORITY OF DEPARTMENT OF INTERNAL AFFAIRS:
GP PRINT LIMITED, WELLINGTON, NEW ZEALAND—1996

ISSN 0111-5650
Price $3.60 (inc. G.S.T.)
67642C—96A