Chit Funds Bill
Table of Contents
Long Title
Enacting Formula
Part I PRELIMINARY
1 Short title and commencement
2 Interpretation
Part II APPOINTMENT OF COMMISSIONER OF CHIT FUNDS
3 Commissioner of Chit Funds
Part III LICENSING OF CHIT FUND COMPANIES
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
8 Licence fees
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
Part IV CHIT FUNDS — GENERAL PROVISIONS
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
21 Security
22 Receipt of contributions
FORMATION AND ESSENTIAL TERMS AND CONDITIONS
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
CONDUCT OF A CHIT FUND
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
Part V RESERVE FUND, DIVIDENDS, BALANCE SHEET, INFORMATION AND REGULATION OF BUSINESS
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
Part VI INSPECTION OF 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
Part VII MISCELLANEOUS PROVISIONS
51 Recovery of fees, expenses, etc.
52 Exemption
53 Winding up provisions
54 Redemption of securities held by chit fund company
55 Operation of Act not to affect certain Acts
56 General penalty
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
61 Regulations
Part VIII TRANSITIONAL PROVISIONS
62 Transitional licensing provisions
63 Firms or association that have been carrying on chit fund business
Explanatory Statement
Expenditure of Public Money