Clause 33

In any case referred to in section 32 of this Act the chit fund company may, before substituting a new subscriber in place of the defaulting subscriber whose name is removed from the register under that section, convene a meeting of the remaining subscribers for the purpose of obtaining their consent to a reduction of the number of subscribers and of the chit fund amount by refraining from substituting a new subscriber in place of the defaulting subscriber.

If at the meeting so convened, the subscribers by a majority representing not less than two-thirds of the chit fund amount consent to such reduction and to the necessary alteration of the agreement, the chit fund company shall record the same in the minute book kept under section 27 of this Act.

Upon the recording of the alteration made for the purposes of a voluntary reduction under this section, every subscriber who was the purchaser of a chit fund amount sold at any auction prior to the date of the reduction, shall be liable to continue the payment of the contributions specified in the agreement until the aggregate amount so contributed by him becomes equal to the chit fund amount at the time of the sale at which he was declared the purchaser.