TNAG-1363-FCO40-1809-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 101

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.