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The Winnipeg Stock Exchange Act

This is an unofficial version.
If you need an official copy, contact Statutory Publications.

S.M. 1996, c. 34

THE WINNIPEG STOCK EXCHANGE ACT


Table of Contents

(Assented to November 19, 1996)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1         In this Act,

"associate", "commission", "security" and "senior officer" have the same meaning as in The Securities Act; (« liens », « Commission », « dirigeant supérieur » et « valeur mobilière »)

"board of directors" means the board of directors of the Corporation; (« conseil d'administration »)

"by-laws" means by-laws of the Corporation; (« règlements administratifs »)

"Corporation" means The Winnipeg Stock Exchange; (« Corporation »)

"exchange" means the exchange operated by the Corporation; (« Bourse »)

"insider", in relation to a member, means

(a) a director or senior officer of

(i) the member,

(ii) a subsidiary of the member, or

(iii) a company that controls the member, and

(b) any person who beneficially owns, directly or indirectly, or exercises control or direction over, voting securities of the member, other than securities held by the person as underwriter in the course of a distribution to the public, carrying in total more than 10% of the voting rights attached to all voting securities of the member for the time being outstanding; (« initié »)

"member" means a member of the Corporation; (« membre »)

"person" includes a partnership; (« personne »)

"public director" means a member of the board of directors elected under subsection 8(2). (« administrateur public »)

Corporation continued

2         The Winnipeg Stock Exchange is continued as a corporation without share capital under the name "The Winnipeg Stock Exchange" in English and "Bourse de Winnipeg" in French.

Head office

3          The head office of the Corporation shall be situated in the City of Winnipeg.

Object

4(1)      The object of the Corporation is to operate an exchange in Manitoba for trading in securities by the members of the Corporation and other persons authorized under subsection (2).

Trading by non-members

4(2)      The board of directors may authorize persons other than members to trade on the exchange, subject to such terms and conditions as are imposed by the board.

Compliance with Securities Act

4(3)      The Corporation shall operate the exchange in a manner that does not contravene the requirements of The Securities Act, the regulations under that Act, or any decision, order or rule of the commission made under that Act or the regulations under that Act, and the Corporation may impose any additional or higher requirement within its jurisdiction.

Non-profit

5         The activities of the Corporation shall be carried on without the purpose of gain for its members, and any profits or other accretions to the Corporation shall be used in promoting its object.

Membership

6(1)      The membership of the Corporation shall consist of the persons who are admitted to membership in accordance with the by-laws, and the Corporation may terminate the membership of any person in accordance with the by-laws.

Limited liability of members

6(2)      The liability of a member for the Corporation's debts is limited to the unpaid balance of the member's annual membership dues.

Board of directors

7(1)      The affairs of the Corporation shall be managed by a board of directors, who may be referred to as governors, consisting of

(a) a president;

(b) two or such greater number of public directors, not exceeding four, as the by-laws provide; and

(c) any number of other directors that the by-laws provide.

Vacancies

7(2)      Despite any vacancy in the board of directors, the remaining directors may exercise all the powers of the board so long as a quorum of the board remains in office.

Quorum

7(3)      Four or any greater number of directors specified in the by-laws constitute a quorum at any meeting of the board of directors.

Election of directors

8(1)      The directors, except the president and the public directors, shall be elected by the members annually in accordance with the by-laws.

Election of public directors

8(2)      The public directors shall be elected annually by the board of directors at the first meeting of the board following the annual meeting of the Corporation to hold office until the next annual meeting of the Corporation, and any vacancy occurring in the office of the public directors may be filled by the election of another person for the remainder of the term by the directors then in office.

Eligibility of public directors

8(3)      A person is not eligible to be a public director if the person is

(a) a member of the Corporation; or

(b) an associate or insider of a member of the Corporation.

Approval of nomination

8(4)      No person shall be elected as a public director unless the person's nomination for election is approved by the commission on the recommendation of a nominating committee constituted in accordance with the by-laws and chaired by the president of the Corporation.

Election of chair, vice-chair

9(1)      The chair and every vice-chair of the board of directors shall be elected by the board of directors.

Appointment of president

9(2)      The president of the Corporation shall be appointed by the board of directors.

Eligibility for presidency

9(3)      A person is not eligible to be the president of the Corporation if the person is

(a) a member of the Corporation; or

(b) an associate or insider of a member of the Corporation.

Removal of president

9(4)      The president of the Corporation may be removed from office by the board of directors upon a vote of 2/3 of the directors then in office.

Officers

9(5)      Every officer of the Corporation, except the chair and any vice-chair of the board of directors, the president, the secretary and the treasurer, shall be appointed by the president with the approval of the board of directors.

Officer cannot be director or member

9(6)      No officer of the Corporation, except the chair and any vice-chair of the board of directors, the president, the secretary and the treasurer, shall be a director or member of the Corporation.

Duty of president

10        The president of the Corporation shall be its chief executive officer.

Power of board

11(1)     For the purposes of the object of the Corporation, the board of directors has the power to govern and regulate

(a) the exchange;

(b) the partnership and corporate arrangements of the members and other persons authorized to trade on the exchange, including requirements as to financial condition; and

(c) the business conduct of members and other persons authorized to trade on the exchange and of their directors, officers, employees and agents and other persons associated with them in the conduct of business, but only in respect of their business conduct while employed or associated with a member;

and, in the exercise of that power and in addition to its power to pass by-laws under Part XXII of The Corporations Act, the board of directors may pass such by-laws and make such rules and issue such orders and directions pursuant to such by-laws as it considers necessary for the purpose, including the imposition of penalties, costs and forfeitures for the breach of any such by-law, rule, direction or order.

By-law authorizing suspension or restriction of privileges

11(2)     If the board of directors passes a by-law that provides for the making of an order restricting or suspending the privileges of any person of a class referred to in the by-law before a hearing of the matter is held, the by-law shall provide that any such restriction or suspension shall be imposed only where the board of directors considers it necessary for the protection of the public interest and that the restriction or suspension shall expire within 15 days after the date on which the order was made unless a hearing is held within that period of time to confirm or set aside the order.

Jurisdiction re former members, etc.

11(3)     Where a person has breached or is alleged to have breached, at a time when the person was a person referred to in clause (1)(c),

(a) a by-law, rule, direction or order of the exchange; or

(b) a rule or regulation of the commission enforced or administered by the exchange;

the board of directors has the jurisdiction to conduct any proceeding and impose and enforce any penalties, costs or forfeiture in respect of the breach or alleged breach to the same extent that it could if the person were still a person referred to in that clause.

Delegation of powers

11(4)     The board of directors may pass by-laws delegating to one or more persons or committees the power of the board of directors

(a) to consider, hold hearings and make determinations regarding applications for any acceptance, approval, registration or authorization and to impose terms and conditions on any such acceptance, approval, registration or authorization;

(b) to investigate and examine at any time the business conduct of a person at any time or times that the person was a person referred to in clause (1)(c); and

(c) to hold hearings, make determinations and impose discipline on persons referred to in clause (b) in matters related to business conduct;

subject to any limitations, restrictions, conditions and requirements set out in the by-laws.

Meetings by telephone, etc.

12        A meeting of the board of directors or of any committee established by the board may be held by means of telephone, electronic or other communication facilities if

(a) the telephone, electronic or other communications facilities permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously; and

(b) all of the directors or committee members, as the case may be, participating in the meeting consent;

and a person participating in such a meeting by such means is deemed to be present at the meeting.

Application of Corporations Act

13        The Corporations Act applies to the Corporation, except

(a) to the extent that the provisions of that Act are inconsistent with this Act;

(b) that a public director may not be removed from office under section 104 of that Act; and

(c) that the by-laws of the Corporation may

(i) subject to subsections 7(1) and (3), establish the number of public directors and other directors of the Corporation and the number of directors that consitute a quorum for meetings of the board;

(ii) fix one or more classes of persons, at least one of which consists of members, who may be appointed by a proxy to attend and act at meetings as nominees of members, and

(iii) provide for and regulate the admission of members, including the requiring of approval by the directors or members, or both, at meetings or individually, and the manner in which such approval is to be given.

Powers of commission

14        Nothing in this Act shall be construed to derogate from the powers of the commission under The Securities Act or any other Act.

Reference in Continuing Consolidation

15        This Act may be referred to as chapter W160 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

16        This Act comes into force on the day it receives royal assent.