2. The returning officer shall then add together the numbers of the papers in all the parcels and divide the total by a number exceeding by one the number of vacancies to be filled, and the result increased by one, disregarding any fractional remainder, shall be the number of votes sufficient to secure the return of a candidate, herein called the "quota."

Candidates with quota elected.

3. Any candidate whose parcel contains a number of papers equal to or greater than the quota shall be declared elected.

Transfer of surplus votes.] 4.—(1) If the number of candidates elected under the last rule shall not equal the number of vacancies, the returning officer shall as far as possible transfer from each elected candidate the votes (if any) in excess of the quota (herein called surplus votes) to the candidates indicated on the ballot papers as next in order of the voters' preference, excluding candidates already declared elected. The votes of the candidate having the largest number of votes shall first be dealt with, and the particular votes to be transferred shall be determined in accordance with the following regulations:—

(a) The returning officer shall arrange all the ballot papers in the parcel of the elected candidate on which votes capable of transfer are given by filing in a separate sub-parcel those on which a next preference is indicated for some one continuing candidate.

(b) The returning officer shall also make a separate sub-parcel of the ballot papers in the parcel on which the votes given are not capable of transfer.

(c) The returning officer shall count the ballot papers in each sub-parcel, and also the total of all the ballot papers containing votes capable of transfer.

(d) If the total number of votes capable of transfer is equal to or less than the surplus votes, the returning officer shall transfer all the votes capable of transfer.

(e) If the total number of votes capable of transfer is greater than the surplus votes, the returning officer shall transfer from each sub-parcel of votes capable of transfer the number of votes which bears the same proportion to the total of the sub-parcel as the number of surplus votes bears to the total of all the votes capable of transfer.

(f) The number of votes to be transferred from each sub-parcel under the preceding regulation shall be ascertained by multiplying the total of the sub-parcel by the number of surplus votes and dividing the result by the total number of votes capable of transfer. Fractional remainders shall be disregarded.