Chit Funds Bill - Singapore Statutes Online

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1 Short title and commencement

3 Commissioner of Chit Funds

4 Licensing of chit funds

5 Use of words "chit" and "chit fund"

6 Examination of persons suspected of transacting chit fund business

7 Application for licence

9 Minimum capital requirements

10 Restriction of opening of branches of chit fund companies

11 Fees to be paid in respect of branches of chit fund companies

12 Limitation on mergers, etc., of a chit fund company

13 Amendment of constitution of a chit fund company

14 Revocation of licence

15 Effect of revocation of licence

16 Exhibition of licence

17 Publication of list of companies

18 Prohibition of chit funds conducted in contravention of this Act

19 When scheme or arrangement deemed to be a chit fund

20 A scheme or arrangement which is deemed only to partake of the nature of a chit fund prohibited

22 Receipt of contributions

23 Formation of chit funds

24 Essential terms and conditions of a chit fund

25 Duty of chit fund company to acknowledge subscriber’s rights

26 Meetings of subscribers

27 Minutes of meeting

28 Alteration of the agreement

29 Receipts for contributions paid and entry of payments in pass-book

30 Production of guarantors by purchaser of chit fund amount

31 Effect of failing to produce guarantors

32 Substitution of new subscriber for defaulting subscriber who has not purchased any chit fund amount

33 Voluntary reduction of membership in lieu of substitution of new subscriber

34 Liability of defaulting subscriber who has already purchased chit fund amount

35 Transfer of subscriber’s rights

36 Transfer of right of chit fund company to recover contributions to be voidable

37 Books to be kept by chit fund company

38 Liability of chit fund company to subscribers

39 Prohibition of bid or tender by chit fund company

40 Termination of a chit fund

41 Sale by sealed tender as alternative to auction

42 Financial limits to be observed by chit funds

43 Limits on lending powers of chit fund company

44 Maintenance of reserve funds

45 Bad and doubtful debts

46 Restriction on payment of dividends by chit fund companies

47 Exhibition of audited balance-sheet

48 Information and statistics to be furnished by chit fund companies

49 Inspection and investigation of chit fund companies and production of books, etc.

50 Powers of the Commissioner to issue orders after an inspection

51 Recovery of fees, expenses, etc.

53 Winding up provisions

54 Redemption of securities held by chit fund company

55 Operation of Act not to affect certain Acts

57 Offences triable in District Court

58 Consent of the Attorney-General

59 Offences by directors, managing directors or managers

60 Holding out as chit fund company

62 Transitional licensing provisions

63 Firms or association that have been carrying on chit fund business

Chit Funds Bill

Bill No. 21/1971

Read the first time on 19th October 1971.

An Act to provide for the licensing and regulation of chit funds.

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: —

PART I

PRELIMINARY

Short title and commencement

1.—(1) This Act may be cited as the Chit Funds Act, 1971, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

(2) The Minister may appoint different dates for the coming into operation of the different Parts or provisions of this Act.

Interpretation

2. In this Act, unless the context otherwise requires —

“agreement” means the document which contains the terms and conditions agreed to and adopted by the subscribers and the chit fund company;

“chit fund” means a scheme or arrangement based wholly on the terms and conditions set out in section 24 of this Act or the regulations made thereunder or any scheme or arrangement that is deemed to be a chit fund under section 19 of this Act but does not include any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of section 20 of this Act;

“chit fund amount” means the pool or the aggregate of the contributions payable on any specified day or in respect of any specified interval;

“chit fund business” means the business of carrying on chit funds;

“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7 of this Act. All branches and offices in Singapore of such company shall be deemed to be one chit fund company for the purposes of this Act;

“Commissioner” means the person appointed under section 3 of this Act to hold office of Commissioner of Chit Funds;

“contribution” means the sum of money payable periodically by each subscriber under the agreement;

“essential terms and conditions” means the terms and conditions specified in section 24 of this Act;

“interest” means that amount of money which the subscriber agrees to forego in order to purchase the chit fund amount;

“Minister” means the Minister charged with the responsibility for finance;

“prize” or “prize amount” means the difference between the chit fund amount and the interest;

“public company” means a company limited by shares incorporated in Singapore other than a private company;

“rebate” means the share of the interest payable to each subscriber;

“subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.

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