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Inspection and investigation of chit fund companies and production of books, etc.

Chit Funds Act 1971

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Wrong or mistyped textWrong structure or numberingWrong title or detailsDuplicated content

Proposed text

—(1) The Authority may, from time to time, inspect or cause to be inspected, under conditions of secrecy, the books, accounts and transactions of any chit fund company.(2) The Minister may at any time direct the Authority to make an investigation, under conditions of secrecy, of the books, accounts and transactions of a chit fund company, if he or she has reason to believe that the chit fund company is carrying on its business in a manner detrimental to the interests of its subscribers and other creditors or has insufficient assets to cover its liabilities to the public, or is contravening the provisions of this Act or the regulations made under this Act.(3) The Authority may appoint any auditor, other than the auditor appointed by the chit fund company under section 205 of the Companies Act 1967, to exercise the powers of the Authority under subsections (1) and (2).(4) For the purpose of an inspection or investigation under this section, a chit fund company must give the Authority access to its books, accounts and documents and must give such information and facilities as may be required to conduct the investigation.(5) However, those books, accounts and documents mentioned in subsection (4) are not to be required to be produced at such times and at such places as would interfere with the proper conduct of the normal daily business of that chit fund company.(6) If any book, account or document or information is not supplied in accordance with subsection (4), the chit fund company concerned shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000 and, in the case of a continuing offence, to a further fine of $250 for every day during which the default continues after conviction.

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