Singapore legislation

Section 53

of Chit Funds Act 1971

Section 53

Winding up provisions

Amended by40/2018

(1)

Without affecting the provisions of the Insolvency, Restructuring and Dissolution Act 2018 —

(a)

a chit fund company (whether or not it is being wound up voluntarily) may be wound up under an order of the court on the application of the Minister; and

(b)

the court may order the winding up of a chit fund company if that company —

(i)

has held a licence under this Act and that licence has expired or has been revoked;

(ii)

has been declared insolvent; or

(iii)

has carried on chit fund business in Singapore in contravention of the provisions of this Act.

Amended by40/2018

(2)

In the winding up of a chit fund company that has been carrying on chit fund business, every subscriber who has not purchased a chit fund amount is entitled to recover that subscriber’s contribution in the manner set out in section 40(2).