Powers of
Committee.
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(4) A quorum of the Disciplinary Committee shall be four persons.
(5) A decision of the majority of the members of the Dis- ciplinary Committee shall be the decision of the Committee. In the event of there being no majority, the decision of the chairman and one other member of the Committee shall be the decision of the Committee.
39. (1) The Disciplinary Committee may inquire into any Disciplinary allegation, whether made by the Commission, the Commissioner or any other person, that any stock exchange, or the committee or any member of the committee of any such exchange, has been guilty of any misconduct.
(2) If, after inquiring into any such allegation, the Dis- ciplinary Committee is of the opinion that the allegation is proved it may, if it thinks fit, subject to the provisions of this Ordinance. do one or more of the following things-
(a) recommend to the Commission that it exercise any of
the powers conferred on it by section 26:
(b) disqualify any member of the committee of the stock exchange from holding office as such either permanently or for such period as the Disciplinary Committee may specify;
(c) impose a fine on the stock exchange not exceeding
$10,000:
(d) reprimand the committee of the stock exchange or any
member of the committee of the stock exchange.
(3) The Disciplinary Committee shall not, in respect of any allegation inquired into under subsection (1), impose on any stock exchange, or on the committee or any member of the committes of the exchange, any of the penalties referred to in subsection (2), or make any recommendation under that subsection, without first giving the committee of the exchange or, as the case may be, the member of the committee, an opportunity of being heard.
(4) Any stock exchange, or committee or member of the committee of a stock exchange, against which or whom an allega- tion of misconduct has been made, and any person appealing to the Disciplinary Committee under section 58, shall have a right to be represented by a solicitor or counsel at the inquiry under subsection (1) or on the bearing of the appeal.
(5) Where a stock exchange has been proceeded against before a court of law in respect of an offence arising out of mis-
37
conduct, the Disciplinary Committee shall not impose a fine under subsection (2)(c) in relation to that misconduct.
(6) For the purposes of this section "misconduci" means- (a) any failure by a stock exchange or the committee of a stock exchange to comply with the requirements of this Ordinance or any rules, regulations, or directions made or given thereunder;
(b) any wilful contravention by a stock exchange or the committee of a stock exchange of the constitution or rules of the exchange:
(c) any failure by a stock exchange or by the committee of a stock exchange to ensure that the rules of the exchange are complied with by its members:
(d) any act or omission relating to the operation of a stock exchange which, in the opinion of the Disciplinary Com- mittee, is or is likely to be prejudicial to the interests of members of the investing public.
40. After the hearing of any inquiry under section 39, or Costs. of any appeal under section 58, the Disciplinary Committee may make such order as to the payment of costs as it considers just.
41. Any sum ordered by the Disciplinary Committee to be Recovery of paid by way of fine or costs in relation to an inquiry under penalties,
costs, and section 39, or in relation to an appeal made under section 58. cxpc11965. shall be deemed to be a civil debi due from the person ordered to pay it to the person to whom it is ordered to be paid and shall be recoverable accordingly in any court of competent jurisdiction.
42. (1) The Disciplinary Committee, by notice in writing Evidence at signed by the chairman and served on any person to whom it is hearing, etc, addressed, may require the person to attend and give evidence before it at the hearing of any inquiry under section 39 or any appeal under section 58, and to produce all books, papers, and documents in that person's custody or under his control relating to the subject-matter of the inquiry or appeal, as the case may be.
(2) Al any inquiry under section 39 or at the hearing of any appeal under section $8, the Disciplinary Committee may-
(a) receive such evidence as it considers relevant to the inquiry or appeal, whether it would be admissible in a court of law or not; and