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I vaguely recall some discussion here on GC about a colonization where the incoming sorority was allowed to bid up to average chapter size, which was more than total.
I feel that's the "right" way to handle it. Total is something of an arbitrary number. It fulfills its purpose if it's set properly, but it's ineffectual if set too high or too low. To take an extreme example, say average chapter size is 120 and Panhel says "ok, let's make total 10." If the new colony can't take more than 10 women, it's going to fold pretty quickly.
But unless an exception is made, the rule as described by PenguinTrax is the rule - the new sorority can only bid to total.
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AEΦ ... Multa Corda, Una Causa ... Celebrating Over 100 Years of Sisterhood
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