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(1) A district mutual health scheme shall have at least two thousand members before it is registered by the Council.

(2) Despite sub-regulation (1), a proposed scheme with less than the number of members provided under sub-regulation (1) may be registered on condition that the membership will within two years from the date of registration increase to the minimum required under sub-regulation (1).

(3) A scheme shall for the purposes of sub-regulation (2) render every six months, namely 30th June and 31st December of each year, a return on its membership to the Council.

(4) Where a scheme fails to make the minimum membership by the end of the two years, the Council may revoke the licence of the scheme and recommend appropriate arrangement to meet the healthcare needs of the members.