Chit Funds Act 1971 · 2020 Revised Edition · Part 4 · Chit Funds — General Provisions
38. Liability of chit fund company to subscribers
Feedback & supportThe chit fund company is liable to each subscriber for any amount due to that subscriber in respect of the chit fund.
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
The chit fund company is not entitled to withdraw from the management of the chit fund without the written consent of all the subscribers.
chit fund
“chit fund” means a scheme or an arrangement based wholly on the terms and conditions set out in section 24 or the regulations made under this Act or any scheme or arrangement that is deemed to be a chit fund under section 19 but does not include any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of section 20;
Where the chit fund company is in liquidation or is being wound up, whether voluntarily or otherwise, any debt owing by the company to any subscriber under the terms and conditions of the agreement relating to the chit fund is, despite anything in any other written law to the contrary, to be a first charge upon any property acquired or held by it for the purposes of that chit fund, including property held by the Authority as security pursuant to the regulations made under this Act.
subscriber
“subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.