Submitted by admin on o Āpereira 22, 2009 - 22:34
Membership
Not surprisingly, a high standard of integrity is required of individuals seeking membership in an exchange. An applicant for membership must hold a sharebroker's licence which, under the Sharebrokers Act 1908, is renewable annually; he must be proposed and seconded by members who have satisfied themselves as to his suitability; he must show the committee of the exchange that his financial position will enable him to meet his contracts; and he must then be elected by usually a four-fifths majority of members. In addition, the applicant has to arrange the purchase of a “seat” on the exchange either from a retiring member or from the exchange itself. In New Zealand the exchanges have two classes of members, metropolitan and country. In the case of the latter group, who are members living in an area controlled by the exchange but outside specified city limits, it is not necessary to purchase a “seat”, but such members do not have a vote on exchange business.
Obviously, sharebroking is not one of the easier occupations to enter. Thus, it is of interest that the Act provides that any seven licensed sharebrokers may form a stock exchange, the rules of which must be approved by Order in Council. Possibly as the national economy grows, one or more new exchanges will be established in future years.