Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 770

770. (1) A body corporate that proposes to establish or conduct a stock market
may apply to the Commission in writing for approval by the Minister as an
approved securities organisation.

(2) The Minister may by writing approve the body as an approved securities
organisation if, and only if, he or she is satisfied that:

   (a)  the body is an eligible corporation;

   (b)  the body's business rules make satisfactory provision:

        (i)    for efficient, honest, fair, competitive and informed trading
               in securities on the stock market or stock markets of the
               proposed approved securities organisation;

        (ii)   for the expulsion, suspension or disciplining of a member for
               conduct inconsistent with just and equitable principles in the
               transaction of business or for a contravention of the body's
               business rules, of this Chapter or of the conditions of a
               licence held by the member;

        (iii)  for the monitoring of compliance with, and for enforcement of,
               the body's business rules; and

        (iv)   generally for the carrying on of the business of the
               organisation with due regard to the interests of the public;
and, without limiting the generality of the foregoing, make satisfactory
provision in relation to such of the following matters as appear to the
Minister to be relevant in relation to the application:

        (v)    the admission of members;

        (vi)   dealings in securities by members;

        (vii)  the listing of securities for trading on the stock market or
               stock markets of the organisation;

        (viii) trading in securities on that stock market or those stock
               markets;

        (ix)   the clearing and settlement of dealings in securities that
               result from trading in securities on that stock market or those
               stock markets;

        (x)    the quotation of securities on, and the reporting of trading in
               securities on, that stock market or those stock markets;

   (c)  the body has made or adopted listing rules and, where the listing
        rules are adopted, has made provision to the effect that an amendment
        of the rules so adopted made by another person is of no effect until
        the body adopts the amendment;

   (d)  the listing rules made or adopted by the body make satisfactory
        provision:

        (i)    with respect to conditions under which securities may be traded
               on the stock market or stock markets of the organisation; and

        (ii)   generally for the protection of the interests of the public;

   (e)  either the body will be a participating exchange or there will be
        enough money in the body's fidelity fund to make the payments out of
        the fund that may reasonably be expected to be necessary for the
        purposes of Part 7.9; and

   (f)  the interests of the public will be served by the granting of its
        approval.

(3) An approval by the Ministerial Council, under a law corresponding to
subsection (2), of a body corporate as an approved securities organisation
that was in force immediately before the commencement of this Part has effect
as if it were an approval by the Minister under that subsection.