SPEECH BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL : WEDNESDAY 6 NOVEMBER 1985
Chit-Fund Businesses (Prohibition) (Amendment) Bill 1985
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Sir,
I move that the Chit-Fund Businesses (Prohibition) (Amendment) Bill 1985 be read a second time.
2.
The main objective of the Bill is to increase the monetary limit imposed on private chit-funds from $10,000 to $20,000.
3.
The operation of commercial chit-fund companies was banned by the enactment of the Chit-Fund Businesses (Prohibition) Ordinance in 1972. But given the long tradition and popularity of private chit-funds, they were allowed to continue to be lawfully operated provided they meet four conditions, namely that
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(a)
there are not more than 30 participants;
(b)
the operator is not at the same time. operating another chit fund;
(c)
(a)
the common fund put up for sale or payment to the participants does not exceed 10,000
dollars; and
no benefit accrues to the operator other than a right to receive the first
subscription free of interest.