Involuntary termination of Membership

Question 1

Membership Committee may provisionally or finally terminate membership if:

Answer 1

• a member which is a natural person, or a partner in the case of a member who is a partnership, dies, or is placed under curatorship, or his estate is sequestrated, whether provisionally or finally;
• member is placed in liquidation, whether provisional or final, under business rescue proceedings or any other judicial proceeding or court application for an insolvency proceeding is initiated
• the member files a resolution to such effect or has an insolvency administrator appointed to it;
• member compromises or attempts to compromise with his creditors;
• the member fails to satisfy or to initiate steps to set aside a judgement, award or determination against it within the time periods provided for in the rules of the relevant body.
• the disciplinary tribunal has decided in terms of rule 3.300 that membership should be terminated
• the member defaults
• trading member fails to enter into a clearing agreement with a clearing member within thirty days or such other period which the JSE may determine after the termination for whatever reason of his clearing agreement with a clearing member.
• the controlling body has resolved to terminate the membership of the member after taking into account the member’s representations in this regard

Question 2

If the member disagrees with the termination?

Answer 2

member aggrieved by a decision of the JSE to finally terminate its membership may appeal to the appeal board in terms of section 105(1) of the Act

Question 3

Who must notify the member of involuntary termination

Answer 3

The JSE must notify the member in writing of the decision of the Membership Committee to finally terminate the membership of a member