1985 Ed.]
Chit-Fund Businesses (Prohibition)
[CAP. 262
1
CHAPTER 262
CHIT-FUND BUSINESSES (PROHIBITION)
To prohibit chit-fund businesses and to make provision for other connected purposes.
Originally 29 of 1972.
71 of 1985.
[12 May 1972.]
1. This Ordinance may be cited as the Chit-Fund Businesses (Prohibition) Ordinance.
2. In this Ordinance, unless the context otherwise requires- "chit-fund" means a scheme or arrangement, whether known as chit-fund or "hwei” or by any other name, whereby or as part of which the participants subscribe periodically or otherwise to a common fund and that common fund is put up for sale or payment to the participants by auction, tender, bid, ballot or otherwise:
"operate" includes manage, form, conduct, organize, advertise and aid, assist or take part in operating;
"Registrar" means the Registrar of Companies.
3. (1) Subject to section 5 and to subsection (2), any person who operates a chit-fund commits an offence and is liable to a fine of $20,000 and to imprisonment for 3 years.
(2) Notwithstanding subsection (1), if an offence is committed under this section by reason only of the breach of one or both of paragraphs (a) and (c) of section 5(2), the offender is liable to a fine of $2,000 and to imprisonment for 1 year.
Short title.
Interpretation.
Chit-fund business an offence.
4. [Repealed, 71 of 1985, s. 3]
(Amended, 71 of 1985, s. 2)
5. (1) Section 3 shall not have effect-
(a)-(b) [Deleted, 71 of 1985, s. 4]
(c) in respect of a chit-fund operated in accordance with subsection (2).
(2) A chit-fund may be operated if-
(a) there are not more than 30 participants;
(b) the operator is not at the same time operating another chit-fund;
(c) the common fund put up for sale or payment to the participants does not exceed $20,000; and
(d) no benefit accrues to the operator other than a right to receive the first subscription free of interest.
Application of section 3.