Chapter

Resolutions

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
October 1947
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Resolution No. 1. Membership for Australia

Pursuant to the receipt of an application for membership from the Commonwealth of Australia, dated March 26, 1947, the Executive Board, in a resolution adopted on April 16, 1947, resolved that action on the application of the Government of the Commonwealth of Australia for membership in the Fund should not be postponed until the next regular meeting of the Board of Governors. In accordance with Section 13 of the By-Laws, the Board of Governors was requested to vote without meeting upon the following resolution:

Resolved:

  • (1) That the Board of Governors hereby approves the admission of the Commonwealth of Australia to membership in the International Monetary Fund under Article II, Section 2 of the Articles of Agreement on the same terms and conditions as those prescribed for original members except as modified by this resolution;

  • (2) That the quota of Australia shall be $200,000,000;

  • (3) That its subscription shall be paid in accordance with the provisions of Article III, Section 3 of the Articles of Agreement and its net official holdings of gold and United States dollars shall be determined as of the close of business September 12, 1946;

  • (4) That the par value of the currency of Australia shall be communicated to the Fund within 30 days after the Fund so requests, the par value to be communicated shall be based on the rates of exchange prevailing on the date Australia becomes a member of the Fund, and the period of 90 days specified by Article XX, Section 4(b) of the Articles of Agreement shall begin on the date the request from the Fund is received;

  • (5) That no part of the subscription need be paid at the time the Articles of Agreement are signed on behalf of Australia;

  • (6) Australia may accept membership in the Fund pursuant to this resolution until August 31, 1947.

The Board of Governors approved the foregoing resolution and, accordingly, on May 22, 1947, the Managing Director extended to the Government of Australia a formal invitation to become a member of the International Monetary Fund subject to the deposit with the United States Government of an appropriate instrument of acceptance and the formal signing of the Articles of Agreement.

The Articles of Agreement were signed by the Honorable Norman J. O. Makin, Ambassador of the Commonwealth of Australia to the United States of America, on behalf of the Government of the Commonwealth of Australia, on August 5, 1947.

Resolution No. 2. Membership for Finland25

Whereas, the Government of the Republic of Finland has applied for admission to membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Board after consultation with representatives of that Government has made recommendations to the Board of Governors with regard to the quota to be subscribed by the Government of the Republic of Finland and other conditions, which in the opinion of the Executive Board, the Board of Governors might wish to prescribe;

Now Therefore, the Board of Governors, having considered the recommendations of the Executive Board, hereby resolves that the Government of the Republic of Finland shall be admitted to membership in the Fund under Article II, Section 2 of the Articles of Agreement on the following terms and conditions:

  • (1) That the quota of Finland shall be $38,000,000;

  • (2) That its subscription shall be equal to its quota, and that not less than 2 per cent of the subscription shall be paid in gold and the balance in the currency of Finland;

  • (3) That no part of the subscription need be paid at the time the Articles of Agreement are signed on behalf of Finland;

  • (4) That within thirty days after the Fund so requests, Finland shall communicate to the Fund the par value of its currency based on the rates of exchange prevailing on the date Finland becomes a member of the Fund, and within sixty days following the Fund’s receipt of the communicated par value Finland and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of sixty days, and that Finland shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires.

  • (5) That Finland may not engage in exchange transactions with the Fund before the thirtieth day after the par value of its currency has been agreed in accordance with (4) above and its subscription shall be paid in full before such thirtieth day;

  • (6) That Finland shall become a member of the Fund subject to the terms and conditions set forth in this resolution as from the date when Finland has complied with both of the following requirements:

    • a. Finland shall deposit with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles of Agreement and all the terms and conditions prescribed in this resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles of Agreement and this resolution; and

    • b. Finland shall sign the original copy of the Articles of Agreement held in the Archives of the Government of the United States of America. (7) That Finland may accept membership in the Fund pursuant to this resolution until March 15, 1948.

Resolution No. 3. Increase in the Quota of Iran26

Resolved:

That the quota of Iran shall be changed to $35 million; provided that Iran applies for a proportionate change in its subscription in the Bank and provided further that Iran consents to the change on or before March 31, 1948. Such change shall become effective on the date the Fund receives notice in writing that Iran consents to the change but not sooner than the date of this resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

Resolution No. 4. Increase in the Quota of Egypt27

Resolved:

That the quota of Egypt shall be changed to $60 million; provided that Egypt applies for a proportionate change in its subscription in the Bank and provided further that Egypt consents to the change on or before March 31, 1948. Such change shall become effective on the date the Fund receives notice in writing that Egypt consents to the change but not sooner than the date of this resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

Resolution No. 5. Agreement with the United Nations28

Resolved:

That the Board of Governors of the International Monetary Fund hereby approves the terms and conditions of the form of Agreement between the United Nations and the Fund, presented by the Executive Directors to the Board of Governors at its Second Annual Meeting.

Resolution No. 6. Amendment of Sections 14 and 1:9 of the By-Laws29

Resolved:

That Sections 14 and 19 of the By-Laws be amended to read as follows:

Section 14. Terms of Service

(d) It shall be the duty of an Executive Director and his Alternate to devote all the time and attention to the business of the Fund that its interests require, and, between them, to be continuously available at the principal office of the Fund. However, in the event that both an Executive Director and his Alternate are unable to be available at the principal office of the Fund for reasons of health, absence while on business of the Fund, or similar reasons, the Executive Director may designate a temporary Alternate to act for him for periods of time which shall not in the aggregate exceed fifteen business days in the course of any financial year. A temporary Alternate shall receive no salary or expense allowance.

(f) The Executive Directors and their Alternates are to be reimbursed, in addition, for all reasonable expenses incurred during absence from the seat of the Fund while on the designated service of the Fund. Executive Directors and their Alternates shall be reimbursed for authorized representation expenses actually incurred while they are absent from the seat of the Fund on a special mission at the request of the Fund.

They shall also be reimbursed for travel and transportation expenses for themselves, their families, and their personal effects in moving once to the seat of the Fund during or immediately before their terms of office and in moving once from the seat during or immediately after their terms of office.

Section 19. Representation of Members Not Entitled to Appoint a Director

(a) Each member not entitled to appoint a Director, may in accordance with the regulations provided in this Section, send a representative to attend any meeting of the Executive Directors when a request made by, or a matter particularly affecting, that member is under consideration. A member, so electing, may waive its rights under this provision. The Executive Directors shall determine whether a matter under consideration particularly affects a member not entitled to appoint a Director, which determination shall be final.

(b) Whenever a member not entitled to appoint a Director desires to present its views at the meeting of the Executive Directors at which a request the member has made is to be considered, it shall so notify the Fund when it makes the request and shall designate a representative for this purpose who shall be available at the seat of the Fund. Failure to give such notice or to designate an available representative shall constitute a waiver of the member’s right to present its views at the meeting.

(c) Whenever the Executive Directors are to consider a matter which has been determined particularly to affect a member not entitled to appoint a Director, the member shall be promptly informed by rapid means of communication of the date set for its consideration. No final action shall be taken by the Executive Directors with respect to such matter, nor any question particularly affecting such member submitted to the Board of Governors, until the member has either waived its rights under paragraph (a) of this Section or has been given an opportunity to present its views through an appropriately authorized representative at a meeting of the Executive Directors, of which the member has had reasonable notice.

Resolution No. 7. Rules and Regulations30

Resolved:

That the Board of Governors of the Fund hereby notifies the Executive Directors that it has reviewed the amendments and additions to the Rules and Regulations adopted by the Executive Directors since the First Annual Meeting and has no changes to suggest.

Resolution No. 8. Election of an Additional Executive Director31

Resolved:

That there shall be one additional Executive Director who shall hold office from his election until the second election of Executive Directors. Those members, as of December 31, 1947, who are not entitled to appoint Directors, and whose votes are not entitled to be cast by Directors holding office, shall participate in the election, which shall be held at such time after December 31, 1947, as the Executive Directors shall determine. Each Governor participating shall cast for one person all of the votes to which he is entitled, and a simple majority of the votes cast shall constitute election, but the Director elected shall be deemed to be elected by all of the members eligible to participate. If no one receives a majority of the votes cast on the first ballot, additional ballots shall be held, and the candidate who received the lowest number of votes on the preceding ballot shall be ineligible for election.

Resolution No. 9. Resolution on Silver32

Whereas, up to the present the staff of the Fund have been forced to devote most of their time to organizational and other urgent problems and have therefore been unable to complete the task outlined by Resolution Number 3 adopted at the First Annual Meeting of the Board of Governors;

Whereas, since the adoption of said Resolution Number 3, there have occurred certain developments relating to silver, including fluctuations in its value, which are a matter of concern to member countries;

Therefore, in recognition of these premises the Board of Governors of the International Monetary Fund hereby resolves that:

  • 1. Member countries shall be urgently requested by the Fund to submit at their earliest convenience pertinent data relating to silver and its uses pursuant to Resolution Number 3 adopted at the First Annual Meeting of the Board.

  • 2. The Fund shall assemble whatever data may be submitted by Members and shall make the material available to all Members not later than March 1, 1948. The Fund may consult with each of the interested Members.

Resolution No. 10. Report on Audit for the Fiscal Year ended June 30, 1947 and Administrative Budget for the Fiscal Year beginning July 1, 194733

Resolved:

That the Board of Governors considers the Report on Audit for the Fiscal Year ended June 30, 1947, the Financial Statements contained therein and the Administrative Budget for the Fiscal Year beginning July 1, 1947, as fulfilling the requirements of Article XII, Section 7 of the Articles of Agreement and Section 20 of the By-Laws.

Resolution No. 11. Amendment of Section 20 of the By-Laws34

Resolved:

That Section 20 of the By-Laws be amended to read as follows: Section 20. Budget and Audits

(a) The Executive Directors shall instruct the Managing Director to prepare an annual administrative budget to be presented to them for approval. The budget so approved shall be incorporated in the annual report to be presented to the Board of Governors at their annual meeting.

(b) An external audit of the financial records and transactions of the Fund shall be made annually and such audit shall relate to the period representing the fiscal year of the Fund. The Executive Directors shall submit the Fund’s audited balance sheet and audited statement of income and expense to the Board of Governors to be considered by them at their annual meeting.

The annual audit shall be made by an audit committee consisting of either three or five persons each of whom shall be nominated by a different member of the Fund and confirmed by the Executive Directors. At least one person serving on each audit committee shall be nominated by one of the six members of the Fund having the largest quotas. The Executive Directors shall determine, in the case of each audit, whether the audit committee shall consist of three or five persons and which members of the Fund shall be requested to nominate persons to serve on the committee. The service of the members of each audit committee shall terminate upon completion of the annual audit and submission of the report on audit.

Each audit committee shall elect one of its members as chairman, shall determine its own procedure, and shall otherwise be independent of the Management of the Fund in conducting the annual audit according to generally accepted auditing standards.

The annual audit shall be comprehensive with respect to examination of the financial records of the Fund; shall extend, insofar as practicable, to the ascertainment that financial transactions consummated during the period under review are supported by the necessary authority; and shall determine that there is adequate and faithful accounting for the assets of the Fund. It shall thereby establish an appropriate basis for conclusion concerning the financial position of the Fund at the close of the fiscal year and the results of its financial operations during that year. For this purpose, the audit committee shall have access to the accounting records of the Fund and other supporting evidence of its financial transactions and shall be furnished by the Management of the Fund with such information and representations as may be required in connection with the audit. The members of the audit committee shall respect the confidential nature of their service and the information made available for purposes of the audit.

All accounts shall be summarized in United States dollars; and for this purpose gold shall be valued in terms of United States dollars at the par value of the United States dollar, and all members’ currencies shall be converted at their par values or in accordance with a decision of the Fund pursuant to Article IV, Section 8(b) (ii) of the Articles of Agreement.

The Executive Directors shall decide all questions of policy raised by requests of the audit committee for particular information or the inspection of particular records or documents. The refusal of any such requests for reasons of policy shall be explained in the comments of the Executive Directors forwarded to the Board of Governors with the report on audit.

Any question the audit committee may have concerning interpretation of the Articles of Agreement, the By-Laws, or the Rules and Regulations shall be discussed with the Managing Director, or officials designated by him, and if the reply is not completely satisfactory to the audit committee, shall be referred to the Executive Directors through the Managing Director.

The audit committee shall submit its report on audit to the Board of Governors for consideration by them at their annual meeting. Such submission shall be made through the Managing Director and the Executive Directors who shall forward with the report on audit their comments thereon. The audit committee shall afford the Managing Director an opportunity for explanation to them before deciding that any matter seems to require criticism in the report on audit.

The audit committee may formally furnish the Managing Director and Executive Directors their views and suggestions concerning the system of accounting, internal financial control, and documentary or other procedure which may technically strengthen or improve the administration of the Fund’s financial affairs. Such matters need not be dealt with in the report on audit unless the audit committee believes they are of such moment as to warrant inclusion.

The Managing Director shall determine what expenses are necessary and reasonable in connection with each annual audit and the Fund shall bear such expenses.

Resolution No. 12. Change in the Fiscal Year35

Resolved:

That paragraph 1 of Resolution No. 3 of the Board of Governors’ Inaugural Meeting shall be amended to read as follows:

1. That the fiscal year of the International Monetary Fund shall begin on May 1; provided, however, that the fiscal year 1946–47 shall begin on July 1, 1946 and end on June 30, 1947, and that the fiscal year 1947–48 shall begin on July 1, 1947 and end on April 30, 1948.

Resolution No. 13. Site of Third Annual Meeting36

Resolved:

That the Chairman shall convene the Third Annual Meeting of the Board of Governors of the International Monetary Fund in Washington, D. C. in the month of September, 1948.

Resolution No. 14. Election of Officers of the Board of Governors37

Resolved:

That the Governor for China is hereby elected Chairman, and the Governors for France, India, the United Kingdom and the United States are hereby elected Vice-Chairmen of the Board of Governors of the International Monetary Fund, to hold their respective offices until the election of officers of the International Monetary Fund takes place at the close of the next annual meeting.

Resolution No. 15. Establishment and Composition of Procedures Committee38

Resolved:

That a Procedures Committee be hereby established, to be available after the termination of this meeting, and until the election of officers of the International Monetary Fund takes place at the next annual meeting, for consultation at the discretion of the Chairman, normally by correspondence, and also, if occasion requires, by convening immediately before the annual meeting of the Board. The Procedures Committee shall consist of the Governors for the following members:

Australia, China, Colombia, Denmark, France, India, Italy, Peru, Poland, Turkey, the United Kingdom and the United States.

The Chairman, Vice-Chairman and Reporting Member shall be the Governors for China, France and Colombia, respectively.

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