Chapter

Reports of the Joint Procedures Committee

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1998
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Chairman—Austria

Vice Chairmen—India, Nicaragua

Reporting Member—Zambia

Other Members

Azerbaijan Republic, Brazil, Cameroon, Canada, Côte d’Ivoire, France, Georgia, Germany, Greece, Guatemala, Japan, Lebanon, Federated States of Micronesia, Republic of Mozambique, Philippines, Poland, Saudi Arabia, United Kingdom, and United States

Report I1

October 8, 1998

Mr. Chairman:

At the meeting of the Joint Procedures Committee held on October 7, 1998, items of business on the agenda of the Board of Governors of the International Monetary Fund were considered.

The Committee submits the following report and recommendations:

1. 1998 Annual Report

The Committee noted that provision had been made for the annual discussion of the business of the Fund.

2. Report of the Chairman of the Interim Committee

The Committee noted the presentation made by the Chairman of the Interim Committee.2

The Committee recommends that the Board of Governors of the Fund thank the Interim Committee for its work.

3. 1998 Regular Election of Executive Directors

The Committee noted that the 1998 Regular Election of Executive Directors of the Fund (Annex I) had taken place and that the next Regular Election of Executive Directors will take place at the Annual Meeting of the Board of Governors in 2000.

4. Financial Statements, Report on Audit, and Administrative and Capital Budgets

The Committee considered the Report on Audit for the Financial Year ended April 30, 1998, the Financial Statements contained therein (Fund Document No. 7 and Appendix IX of the 1998 Annual Report), and the Administrative Budget for the Financial Year ending April 30, 1999 and the Capital Budget for capital projects beginning in Financial Year 1999 (Fund Document No. 9 and Chapter 13 of the 1998 Annual Report).

The Committee recommends that the Board of Governors of the Fund adopt the draft Resolution set forth in Fund Document No. 8.3

5. Amendments of Rules and Regulations

The Committee has reviewed and noted the letter of the Managing Director and Chairman of the Executive Board to the Chairman of the Board of Governors, dated October 6, 1998, reproduced as Fund Document No. 10, regarding amendments of the Rules and Regulations set forth in Annex I to that document (Annex II).

The Committee recommends that the Board of Governors of the Fund adopt the draft Resolution set forth in Annex II of Fund Document No. 10.4

Approved:

/s/ Wolfgang Ruttenstorfer/s/ Benjamin Mweene
Austria - ChairmanZambia - Reporting Member

Statement of Results of Election, October 7, 1998

Candidate ElectedMembers Whose Votes Counted Toward Election5Number of Votes
Abdulrahman A. Al-TuwaijriSaudi Arabia51,556
Alexandre Barro ChambrierBenin703
Burkina Faso692
Cameroon1,601
Cape Verde320
Central African Republic662
Chad663
Comoros315
Congo, Republic of829
Côte d’Ivoire2,632
Djibouti365
Equatorial Guinea493
Gabon1,353
Guinea1,037
Guinea-Bissau355
Madagascar1,154
Mali939
Mauritania725
Mauritius983
Niger733
Rwanda845
São Tomé and Príncipe305
Senegal1,439
Togo793
19,936
Thomas A. BernesAntigua and Barbuda335
The Bahamas1,199
Barbados739
Belize385
Canada43,453
Dominica310
Grenada335
Ireland5,500
Jamaica2,259
St. Kitts and Nevis315
St. Lucia360
St. Vincent and the Grenadines310
55,500
Roberto F. CippaAzerbaijan1,420
Kyrgyz Republic895
Poland10,135
Switzerland24,954
Tajikistan850
Turkmenistan730
Uzbekistan2,245
41,229
Nicolas EyzaguirreArgentina15,621
Bolivia1,512
Chile6,467
Paraguay971
Peru4,911
Uruguay2,503
31,985
Riccardo FainiAlbania603
Greece6,126
Italy46,157
Malta925
Portugal5,826
San Marino350
59,987
Javier Guzmán-CalafellCosta Rica1,440
El Salvador1,506
Guatemala1,788
Honduras1,200
Mexico17,783
Nicaragua1,211
Spain19,604
Venezuela19,763
64,295
Kai Aaen HansenDenmark10,949
Estonia715
Finland8,868
Iceland1,103
Latvia1,165
Lithuania1,285
Norway11,296
Sweden16,390
51,771
Willy KiekensAustria12,133
Belarus3,054
Belgium31,273
Czech Republic6,146
Hungary7,798
Kazakhstan2,725
Luxembourg1,605
Slovak Republic2,824
Slovenia1,755
Turkey6,670
75,983
Abbas MirakhorAlgeria9,394
Ghana2,990
Iran, Islamic Republic of11,035
Morocco4,527
Pakistan7,832
Tunisia2,310
38,088
Jose Pedro de Morais, Jr.Angola2,323
Botswana616
Burundi822
Eritrea365
Ethiopia1,233
The Gambia479
Kenya2,244
Lesotho489
Liberia963
Malawi759
Mozambique1,090
Namibia1,246
Nigeria13,066
Sierra Leone1,022
South Africa13,904
Swaziland615
Tanzania1,719
Uganda1,589
Zambia3,885
Zimbabwe2,863
51,292
Aleksei MozhinRussian Federation43,381
Murilo PortugalBrazil21,958
Colombia5,863
Dominican Republic1,838
Ecuador2,442
Guyana922
Haiti857
Panama1,746
Suriname926
Trinidad and Tobago2,718
39,270
A. Shakour ShaalanBahrain1,078
Egypt7,034
Iraq5,290
Jordan1,467
Kuwait10,202
Lebanon1,710
Libya8,426
Maldives305
Oman1,444
Qatar2,155
Syrian Arab Republic2,349
United Arab Emirates4,171
Yemen, Republic of2,015
47,646
M. R. SivaramanBangladesh4,175
Bhutan295
India30,805
Sri Lanka3,286
38,561
Gregory F. TaylorAustralia23,582
Kiribati290
Korea8,246
Marshall Islands275
Micronesia, Federated States of285
Mongolia621
New Zealand6,751
Palau272
Papua New Guinea1,203
Philippines6,584
Samoa335
Seychelles310
Solomon Islands325
Vanuatu375
49,454
J. A. H. de Beaufort WijnholdsArmenia925
Bosnia and Herzegovina1,462
Bulgaria4,899
Croatia2,866
Cyprus1,250
Georgia1,360
Israel6,912
Macedonia, former Yugoslav Republic of746
Moldova1,150
Netherlands34,692
Romania7,791
Ukraine10,223
74,276
Zamani Abdul GhaniBrunei Darussalam1,750
Cambodia900
Fiji761
Indonesia15,226
Lao People’s Democratic Republic641
Malaysia8,577
Myanmar2,099
Nepal770
Singapore3,826
Thailand5,989
Tonga300
Vietnam2,666
43,505
ZHANG ZhixiangChina34,102
/s/ Narendra Jadhav6/s/ Mauricio Rivas
TellerTeller

Annex I to Report I. Regulations for the Conduct of the 1998 Regular Election of Executive Directors

  • Definitions: In these Regulations, unless the context will otherwise require:

    • (a) “Articles” means the Articles of Agreement of the Fund.

    • (b) “Board” means the Board of Governors of the Fund.

    • (c) “Chairman” means the Chairman or Vice-Chairman acting as Chairman of the Board.

    • (d) “Governor” includes the Alternate Governor or any temporary alternate Governor when acting for the Governor.

    • (e) “Secretary” means the Secretary or any Acting Secretary of the Fund.

    • (f) “Election” means the 1998 Regular Election of Executive Directors.

    • (g) “Eligible votes” means the total number of votes that can be cast in an election.

  • Date of Election: The election shall be held during a plenary session of the Annual Meeting on Wednesday, October 7, 1998.

  • Eligibility: The Governors eligible to vote in the election shall be all of the Governors except those of the members that:

    • (a) are entitled to appoint an Executive Director pursuant to Article XII, Section 3(b)(i);

    • (b) have notified the Managing Director, in accordance with the procedure established by the Executive Board, of their intention to appoint an Executive Director pursuant to Article XII, Section 3(c);

    • (c) have had their voting rights suspended under Article XXVI, Section 2(b).

  • Schedule E: Subject to the Supplementary Regulations set forth herein, the provisions of Schedule E of the Articles shall apply to the conduct of the election.

  • Number of Executive Directors to Be Elected: Nineteen Executive Directors shall be elected. “Nineteen persons” shall be substituted for “fifteen persons” in paragraphs 2, 3, and 6, and “eighteen persons” shall be substituted for “fourteen persons” and “nineteenth” shall be substituted for “fifteenth” in paragraph 6 of Schedule E.

  • Proportion of Votes Required to Elect: In paragraphs 2 and 5 of Schedule E “four percent” and in paragraphs 3, 4, and 5, “nine percent” shall not be changed.

  • Nominations:

    • (a) Any person nominated by one or more Governors eligible to vote in the election shall be eligible for election as an Executive Director.

    • (b) Each nomination shall be made on a Nomination Form furnished by the Secretary, signed by the Governor or Governors making the nomination, and deposited with the Secretary.

    • (c) A Governor may nominate only one person.

    • (d) Nominations may be made until 12 o’clock noon on the day before the day on which the election is scheduled to be held. The Secretary shall post and distribute a list of the candidates.

  • Supervision of the Election: The Chairman shall appoint such tellers and other assistants and take such other actions as he deems necessary for the conduct of the election.

  • Ballots and Balloting:

    • (a) One ballot form shall be furnished, before a ballot is taken, to each Governor eligible to vote. On any particular ballot, only ballot forms distributed for that ballot shall be counted.

    • (b) Each ballot shall be conducted by the deposit of ballot forms, signed by Governors eligible to vote, in a ballot box.

    • (c) When a ballot has been completed, the Chairman shall cause the ballot forms to be counted and the names of the persons elected to be announced promptly after the tellers have completed their tally of the ballot forms. If a succeeding ballot is necessary, the Chairman shall announce the names of the candidates to be voted on and the members whose Governors are entitled to vote.

    • (d) If the tellers shall be of the opinion that any particular ballot form is not properly executed, they shall, if possible, afford the Governor concerned an opportunity to correct it before tallying the results, and such ballot form, if so corrected, shall be deemed valid.

    • (e) If a Governor does not vote for any candidate when entitled to do so, he shall not be entitled to vote on any subsequent ballot and his votes shall not be counted under Article XII, Section 3(/)(iii) toward the election of any Executive Director.

    • (f) If, at any time during any ballot, a member does not have a duly appointed Governor, such member shall be taken not to have voted on that ballot.

    • (g) If a second or subsequent ballot is required under Schedule E, but the number of remaining candidates is equal to the number of vacancies to be filled, those candidates shall be deemed to have been elected in the preceding ballot, provided that paragraph 14 of these Regulations shall apply.

  • If in any ballot there are more candidates than the number of Executive Directors to be elected and two or more candidates tie with the lowest number of votes, no candidate shall be ineligible for election in the next succeeding ballot, but if the same situation is repeated on such succeeding ballot, the Chairman shall eliminate by lot one of the candidates from the following ballot.

  • If any two or more Governors having an equal number of votes shall have voted for the same candidate and the votes of one or more, but not all, of such Governors could be deemed under paragraph 4 of Schedule E to have raised the total votes received by the candidate above 9 percent of the eligible votes, the Chairman shall determine by lot the Governor or Governors, as the case may be, who shall be entitled to vote in the next ballot.

  • When in any ballot the number of candidates is the same as the number of Executive Directors to be elected, and no candidate is deemed to have received more than 9 percent of the eligible votes, each candidate shall be considered elected by the number of votes received even though a candidate may have received less than 4 percent of eligible votes.

  • If the votes cast by a Governor raise the total votes received by a candidate from below to above 9 percent of the eligible votes, the votes cast by that Governor shall be deemed, for the purposes of paragraph 4 of Schedule E, not to have raised the total votes received by that candidate above 9 percent.

  • Any member whose Governor has voted in the last ballot for a candidate not elected may, before the effective date of the election as set forth in section 16 below and subject to the limits specified above on the total number of votes that may be cast toward the election of an Executive Director, designate an Executive Director who was elected, and that member’s votes shall be deemed to have counted toward the election of the Executive Director so designated.

  • Announcement and Review of Result:

    • (a) After the last ballot, the Chairman shall cause to be distributed a statement setting forth the result of the election.

    • (b) The Board of Governors, at the request of any Governor, will review the result of the election in order to determine whether, in light of the objectives set forth in Chapter O, Section 2 of the Report by the Executive Directors to the Board of Governors on the Proposed Second Amendment to the Articles of Agreement, an additional Executive Director should be elected to serve for the term of office commencing November 1, 1998.

  • Effective Date of Election of Executive Directors: The effective date of election shall be November 1, 1998, and the term of office of the elected Executive Directors, and of any Executive Director appointed under Article XII, Section 3(c), shall commence on that date. Incumbent elected Executive Directors shall serve through October 31, 1998.

  • General: Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Board of Governors. Whenever possible, any such question shall be put without identifying the members or Governors concerned.

As approved by Board of Governors Resolution No. 53–4, August 31, 1998

Annex II to Report I

October 6, 1998

Dear Mr. Chairman:

In accordance with Section 16 of the By-Laws, the attached amendment of the Rules and Regulations adopted since the 1997 regular meeting (Attachment I) is submitted for review by the Board of Governors. A draft resolution for approval by Governors appears in Attachment II.

Part of the recent review of the Fund’s audit functions included a review of the external audit process. Section 20 of the By-Laws, which governs this process, provides in subsection (f) that “[T]he audit committee may formally furnish to the Managing Director and the Executive Board the committee’s 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.” In this regard, the Executive Board has determined that when the external audit committee communicates such views and suggestions, they shall be communicated to the Managing Director and the Executive Board at the same time. To reflect this, the Executive Board decided on May 22, 1998 to add a new Rule J-7 to the Rules and Regulations. In addition, the decision also adopted a new Rule J-8, to provide that “[A]ny review of the external audit process initiated by the Fund shall be conducted under the direction of the Executive Board and the Managing Director and any report shall be communicated upon completion, at the same time, to the Executive Board and the Managing Director.” The former Rule J-7 has been redesignated as Rule J-9.

The Executive Board has made no other changes in the Rules and Regulations since the last Annual Meeting.

Very truly yours,

/s/

Michel Camdessus

Managing Director and

Chairman of the Executive Board

Chairman of the Board of Governors

1998 Annual Meeting

International Monetary Fund

Attachment I. Rules and Regulations Amended Since the 1997 Annual Meeting

Rules J-7 and J-8. Text as amended May 22, 1998.

J-7. When the external audit committee communicates views and suggestions pursuant to Section 20(f) of the By-Laws, those views and suggestions shall be communicated at the same time to the Managing Director and the Executive Board.

J-8. Any review of the external audit process initiated by the Fund shall be conducted under the direction of the Executive Board and the Managing Director and any report shall be communicated upon completion, at the same time, to the Executive Board and the Managing Director.

2. The former Rule J-7 is redesignated as Rule J-9.

Report III1

October 8, 1998

Mr. Chairman:

The Joint Procedures Committee met on October 7, 1998 and submits the following report and recommendations:

1. Development Committee

The Committee noted that the Report of the Chairman of the Joint Ministerial Committee of the Boards of Governors of the Fund and the Bank on the Transfer of Real Resources to Developing Countries (Development Committee) has been presented to the Boards of Governors of the Fund and Bank pursuant to paragraph 5 of Resolutions Nos. 29-9 and 294 of the Fund and Bank, respectively (Fund Document No. 5 and Bank Document No. 3).2

The Committee recommends that the Boards of Governors of the Fund and the Bank note the report and thank the Development Committee for its work.

2. Officers and Joint Procedures Committee for 1998/99

The Committee recommends that the Governor for Nepal be Chairman and that the Governors for Kenya and the Philippines be Vice Chairmen of the Boards of Governors of the Fund and of the World Bank Group, to hold office until the close of the next Annual Meetings.

It is further recommended that a Joint Procedures Committee be established to be available, after the termination of these meetings and until the close of the next Annual Meetings, for consultation at the discretion of the Chairman, normally by correspondence and, if the occasion requires, by convening; and that this Committee shall consist of the Governors for the following members: China, Dominica, France, Germany, Ghana, Japan, Kenya, Kuwait, Latvia, Mali, Nepal, New Zealand, Panama, Peru, the Philippines, Saudi Arabia, Spain, Sweden, Turkey, the United Kingdom, the United States, Uzbekistan, Venezuela, and Zimbabwe.

It is recommended that the Chairman of the Joint Procedures Committee shall be the Governor for Nepal, and the Vice Chairmen shall be the Governors for Kenya and the Philippines, and that the Governor for Dominica shall serve as Reporting Member.

Approved:

/s/ Wolfgang Ruttenstorfer/s/ Benjamin Mweene
Austria - ChairmanZambia - Reporting Member

Report I and the Resolutions contained therein were adopted by the Board of Governors of the Fund in Joint Session with the Boards of Governors of the Bank, IFC, and IDA, on October 8, 1998.

See pages 41–42.

Resolution No. 53–5; see page 286.

Resolution No. 53–6; see page 286.

The Islamic State of Afghanistan and Somalia did not participate in this election. The Democratic Republic of the Congo and Sudan did not participate owing to the suspension of the voting rights of these members under Article XXVI, Section 2(b).

Mr. Satya Pal Talwar attended part of the ballot tallying. Mr. Narendra Jadhav from the Indian delegation replaced him at 5:15 p.m.

Report II dealt with the business of the Boards of Governors of the Bank, IFC, and IDA. Report III and the recommendations contained therein were adopted by the Boards of Governors of the Fund and of the Bank, IFC, and IDA in Joint Session on October 8, 1998.

seepages 296–301.

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