XN000022-1985-10-18 — Page 7

FRIDAY, OCTOBER 18, 1985

$20 000 CHIT-FUND LIMIT PROPOSED

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THE GOVERNMENT IS PROPOSING TO DOUBLE THE AMOUNT OF MONEY WHICH CAN BE COLLECTED FOR THE COMMON FUND OF A PRIVATE CHIT-FUND, TO TAKE ACCOUNT OF INFLATION SINCE 1972 WHEN THE AMOUNT WAS SET AT $10 000.

AT THE SAME TIME, THE PENALTY FOR A NUMBER OF OFFENCES UNDER THE CHIT-FUND BUSINESSES (PROHIBITION) ORDINANCE WOULD ALSO BE RAISED FROM $10 000 TO $20 000.

A GOVERNMENT SPOKESMAN EXPLAINED THAT THE ORDINANCE WAS ENACTED IN MAY 1972 TO PROHIBIT THE OPERATION OF COMMERCIAL CHIT- FUND COMPANIES WHICH FLOURISHED IN HONG KONG BETWEEN 1970 AND 1972.

HOWEVER IN VIEW OF THE LONG TRADITION AND POPULARITY OF CHIT-FUNDS AS A FORM OF SAVING AMONG RELATIVES AND FRIENDS, PRIVATE CHIT-FUNDS HAVE BEEN ALLOWED UNDER CERTAIN CONDITIONS.

IN ADDITION TO THE LIMIT ON THE COMMON FUND, THE NUMBER OF PARTICIPANTS CANNOT EXCEED 30, THE OPERATOR MUST NOT BE OPERATING ANOTHER CHIT FUND AT THE SAME TIME, AND MUST NOT HAVE ANY BENEFIT OTHER THAN THE RIGHT TO RECEIVE THE FIRST SUBSCRIPTION FREE OF INTEREST.

TO SIMPLIFY THE PROCEDURE FOR REVISING THE MONETARY LIMIT FOR THE COMMON FUND, THE GOVERNMENT ALSO PROPOSES THAT IN FUTURE THE LIMIT CAN BE CHANGED BY RESOLUTION OF THE LEGISLATIVE COUNCIL.

THESE PROPOSALS ARE CONTAINED IN AN AMENDMENT BILL, PUBLISHED IN THE GAZETTE TODAY AND SCHEDULED FOR FIRST READING ON NOVEMBER 6.

MEMBERS OF THE PUBLIC WHO HAVE ANY COMMENT MAY WRITE TO UMELCO AT THE LEGISLATIVE COUNCIL BUILDING, JACKSON ROAD CENTRAL, OR TO THE SECRETARY FOR ECONOMIC SERVICES AT THE CENTRAL GOVERNMENT OFFICES, LOWER ALBERT ROAD, HONG KONG.

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NENDICK APPOINTED TO MTRC BOARD

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THE GOVERNOR HAS APPOINTED MR DAVID NENDICK TO THE BOARD OF THE MASS TRANSIT RAILWAY CORPORATION WITH EFFECT FROM NOVEMBER 1, 1985.

MR NENDICK IS REPLACING MR D.W.A. BLYE, ONE OF THE FOUNDER MEMBERS OF THE BOARD, WHO IS RETIRING AFTER 10 YEARS OF SERVICE. MR NENDICK WILL SUCCEED MR BLYE AS THE SECRETARY FOR MONETARY AFFAIRS IN EARLY NOVEMBER.

THE OTHER MEMBERS OF THE BOARD, WHICH IS CHAIRED BY MR WILFRID NEWTON, ARE MR OSWALD CHEUNG, MR G.M. MACWHINNIE, MR W.C.L. BROWN, MR C.H. TUNG, MR P.K. YEUNG, THE SECRETARY FOR LANDS AND WORKS, THE SECRETARY FOR TRANSPORT AND THE MANAGING DIRECTOR OF THE CORPORATION.

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