Chapter

Reports of the Joint Procedures Committee

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1958
Share
  • ShareShare
Show Summary Details
ChairmanBelgium
Vice-ChairmanHonduras
Reporting MemberThailand

Other Members: Afghanistan, Argentina, China, France, Greece, Haiti, Iceland, India, Indonesia, Iran, Israel, United Kingdom, and United States

Report I1

October 4, 1958

Sir:

The Joint Procedures Committee, at its first meeting at 4:00 p.m. on October 4, 1958, considered the matters of business which had been proposed for this Annual Meeting of the Boards of Governors of the Fund and the Bank.

I have the honor to submit the following recommendations of the Committee:

1. Schedule of Meeting

The Committee recommends that the provisional schedule set forth in Annex I be adopted, and that the Secretaries of the Fund and the Bank, in consultation with the Chairmen, may modify it as necessary.

2. Conduct of Meeting

The Committee recommends that the provisions relating to the conduct of the Meeting, as contained in Annex II, be approved.

3. Fund Agenda

The Committee recommends that the agenda set forth in Annex III be adopted by the Board of Governors of the Fund and that any proposed additions to the agenda be submitted in writing to the Joint Procedures Committee, through the Chairman, for its recommendations.

4. Seventh Regular Election of Executive Directors

The Committee considered the Report of the Executive Directors of the Fund regarding the Seventh Regular Election of Executive Directors (Annex IV). The Committee recommends the adoption of the draft resolution relating to this election and the proposed rules for its conduct attached to the said Report.

5. Later Reports of the Committee

The Committee also considered the other individual items of business on the proposed agendas of the Fund and the Bank and will make recommendations as to their disposition in separate Committee reports to the two Boards. The report on the Fund items will be given at the meeting of the Fund Board on Tuesday. The report on the Bank items of business will be presented at the meeting of the Bank Governors on Thursday morning. At these meetings any Governor who wishes to speak will have an opportunity to be heard on any item of business before the Governors.

The Committee will make a later report to the Joint Boards of Governors on:

  • a. Place and Date of Next Annual Meeting;

  • b. Election of Officers and Joint Procedures Committee for 1958-59.

Approved:

/s/ H. Ansiaux/s/ S. Vinicchayakul
/s/ van Houtte/s/ Viwat
(Belgium)(Thailand)
ChairmanReporting Member

The Report was adopted by the Boards of Governors of the Fund and the Bank in Joint Session on October 6, 1958. The results of the Seventh Regular Election of Executive Directors of the Fund, which was held on October 9, 1958, are shown on pages 161-63.

Annex I to Report I—Schedule

SATURDAY, October 4
4:00 p.m. Joint Procedures Committee
MONDAY, October 6
10:00 a.m. Joint Boards—Opening Session — Address by the Prime Minister of India
  • —Address by the Chairman

  • —Joint Procedures Committee Report I

  • —Annual Address by the Managing Director of the Fund

TUESDAY, October 7
9:30 a.m. Bank Board—Annual Address by the President of the Bank
10:30 a.m. Fund Board—Joint Procedures Committee Report II
  • —Annual Report Discussion

3:30 p.m. Fund Board—Annual Report Discussion (continued)
WEDNESDAY, October 8
10:00 a.m. IFC Board —Annual Address by the President of the Corporation
  • —IFC Procedures Committee Report

  • —Annual Report Discussion

3:30 p.m. IFC Board —Informal Panel Discussion: “Private Enterprise in Economic Growth”
THURSDAY, October 9
9:30 a.m. Fund Board—Election of Executive Directors
10:30 a.m. Bank Board—Election of Executive Directors
  • —Joint Procedures Committee Report III

  • —Annual Report Discussion

FRIDAY, October 10
9:30 a.m. Joint Procedures Committee
10:00 a.m. Joint Boards—Comments of Managing Director of Fund
  • —Comments of President of Bank

  • —Joint Procedures Committee Report IV

  • —Closing Session

Annex II to Report I—Provisions Relating to the Conduct of the Meeting

Attendance

1. All Sessions of the Boards of Governors of the Fund and the Bank, including Joint Sessions, shall be open to the press and invited guests, unless otherwise decided. Committee meetings shall be closed.

2. Meetings of the Joint Procedures Committee shall be open only to Governors who are members of the Committee and their delegations.

3. Committee meetings, if any, with the exception of Joint Procedures Committee meetings, shall be open to delegations who are not Committee Members.

4. Accredited observers may attend all Sessions of the Boards of Governors and their Committees, other than the Joint Procedures Committee, unless decided otherwise. Observers wishing to speak at a meeting are requested to consult the Secretaries in advance.

5. Sessions of the Boards of Governors and Committee meetings shall be open to such members of the Joint Secretariat and the technical staffs as may be necessary.

Public Information

6. The Chairmen of the Boards of Governors, the Managing Director of the Fund, and the President of the Bank are authorized to communicate to the press such information concerning the proceedings of the Annual Meeting as they deem suitable. Copies of such communications shall be available to any Governor on his request.

Records

7. The Secretaries of the Fund and the Bank are authorized to prepare verbatim transcripts of the proceedings of Sessions of the Boards of Governors and their Committees. The transcripts of Committee proceedings, and any summary records thereof, will be confidential and available only to the Chairmen, the Managing Director of the Fund and the President of the Bank, and the Secretaries, unless otherwise decided.

8. Reports of Committees shall be signed by the respective Committee Chairmen and Reporting Members.

Annex III to Report I—Agenda

1. Thirteenth Annual Report

2. Financial Statements and Audit Report (Appendix VII of Thirteenth Annual Report and Fund Documents Nos. 2 and 3)

3. Administrative Budget for Fiscal Year Ending April 30, 1959 (Appendix VI of Thirteenth Annual Report and Fund Documents Nos. 3 and 4)

4. General Reserve (Fund Document No. 5)

5. Changes in Rules and Regulations (Fund Document No. 6)

6. Seventh Regular Election of Executive Directors (Fund Document No. 7)

7. Resources of the Fund (Fund Document No. 8)

8. Place and Date of Next Annual Meeting

9. Election of Officers and Procedures Committee for 1958-59

Annex IV to Report I—Seventh Regular Election of Executive Directors

October 1, 1958

Dear Mr. Chairman:

At its Thirteenth Annual Meeting it will be necessary for the Board of Governors to adopt Rules for the Conduct of the Seventh Regular Election of Executive Directors.

Submitted herewith for the Board of Governors are:

  • 1. A report of the Executive Directors to the Board of Governors regarding the Seventh Regular Election of Executive Directors.

  • 2. Proposed Rules for the Conduct of the Election.

  • 3. Proposed Resolution to the Board of Governors regarding this Election.2

Very truly yours,

/s/

Per Jacobsson

Managing Director

and

Chairman of the Executive Board

Chairman of the Board of Governors

Thirteenth Annual Meeting

International Monetary Fund

Report of the Executive Directors to the Board of Governors Regarding the Seventh Regular Election of Executive Directors

  • 1. Section 3(d) of Article XII of the Articles of Agreement of the Fund provides that elections of Executive Directors shall be conducted at intervals of two years. The Sixth Regular Election of Executive Directors was held at the Eleventh Annual Meeting of the Board of Governors in September 1956.

  • 2. Section 3(b) of Article XII provides that there shall not be less than twelve Executive Directors, of whom

    • (i) five shall be appointed by the five members having the largest quotas;

    • (ii) not more than two shall be appointed when the provisions of Article XII, Section 3(c), apply;

    • (iii) five shall be elected by the members not entitled to appoint Directors, other than the American Republics; and

    • (iv) two shall be elected by the American Republics not entitled to appoint Directors.

  • 3. It is further provided in Section 3(b) that, “When governments of other countries become members, the Board of Governors may, by a four-fifths majority of the total voting power, increase the number of Directors to be elected.”

  • 4. The Executive Directors have considered the question of the number of Executive Directors to be elected at the Seventh Regular Election. It was noted that in a Resolution adopted at their Inaugural Meeting in 1946 the Governors provided for the election of a thirteenth Executive Director when new members with votes totalling 4,000 were admitted to membership. One additional Executive Director was elected under that Resolution in May 1947. Provision for the election of a second additional Executive Director to represent other new members in the Executive Board was made in Board of Governors Resolution No. 2-8. One Executive Director was elected under the Resolution in January 1948 bringing the total number of Executive Directors to fourteen. In view of the increase of 8,755 votes resulting from new membership between the Second and Fourth Regular Elections, the Board of Governors increased from seven to nine the number of Directors to be elected under Article XII, Section 3(b) (iii), in the Fourth Regular Election. This number remained the same for the succeeding Fifth and Sixth Regular Elections.3 At the Sixth Regular Election the Board of Governors increased to three the number of Directors to be elected under Section 3(b) (iv) by the American Republics not entitled to appoint Directors. Accordingly, after the Sixth Regular Election the Board comprised seventeen Directors.

  • 5. The Executive Directors have taken note of the following developments in voting strength for election of Directors under Section 3(b) (iii). On August 13, 1958, the Managing Director notified all members under Section 18 of the By-Laws that Canada, previously eligible to participate in elections under Article XII, Section 3(b)(iii), has become entitled to appoint an Executive Director at the Seventh Regular Election pursuant to Article XII, Section 3(c). In addition, since the Fourth Regular Election, when the Board of Governors increased to nine the number of Directors to be elected under Article XII, Section 3(b)(iii), the following new members have been admitted with a combined voting strength of 7,445:

Afghanistan350
Ghana400
Indonesia1,350
Ireland550
Israel325
Korea375
Libya300
Malaya500
Morocco600
Saudi Arabia350
Spain1,250
Sudan350
Tunisia370
Viet-Nam375
Total7,445
  • 6. In view of these developments, it is recommended that the total number of Executive Directors be raised to eighteen; and, that the number of Directors to be elected under Article XII, Section 3(b) (iii), remain at nine, the same number as were elected under that provision in the Sixth Regular Election.

  • 7. It is further recommended that the same maximum and minimum percentages, namely, 14 to 10 per cent for elections under Section 3(b)(iii), and 38 to 28 per cent for elections under Section 3(b)(iv), be used for the Seventh Regular Election as in the Sixth Regular Election.

  • 8. The Executive Directors have also considered the matter of the effective date of the Seventh Regular Election. It is recommended that the effective date of the Election should be November 1, 1958.

Proposed Rules for the Conduct of the Seventh Regular Election of Executive Directors of the Fund

  • 1. Definitions: In these Rules, unless the context shall otherwise require:

    • (a) Articles referred to are the Articles of Agreement of the Fund.

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

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

    • (d) “Governor” includes the Alternate Governor or any temporary Alternate Governor designated in accordance with Section 12 of the By-Laws when acting for the Governor.

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

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

    • (g) “Session” means the meeting of the Board at which the election is held.

  • 2. Date of Election: The election shall be held during the Thirteenth Annual Meeting of the Board at a session to be arranged by the Board.

  • 3. Basic Rules: Subject to the adjustments hereinafter set forth, the provisions of Schedule C of the Articles of Agreement of the Fund shall apply to the conduct of the election.

  • 4. Number of Executive Directors to Be Elected Under Article XII, Section 3(b)(iii): At such election nine Executive Directors shall be elected under Article XII, Section 3(b)(iii).

  • 5. In view of the number of Executive Directors to be elected under Article XII, Section 3(b) (iii):

    • (a) “Ten per cent” shall be substituted for “nineteen per cent” in paragraphs 2 and 5 of Schedule C.

    • (b) “Fourteen per cent” shall be substituted for “twenty per cent” in paragraphs 3, 4, and 5 of Schedule C.

  • 6. Number of Executive Directors to Be Elected Under Article XII, Section 3(b)(iv): At such election three Executive Directors shall be elected under Article XII, Section 3(b) (iv) ; and

    • (a) The minimum percentage of the eligible votes required for election under this subparagraph shall be twenty-eight per cent;

    • (b) The maximum percentage of eligible votes for any one nominee for the purposes of Rule 16 shall be thirty-eight per cent.

  • 7. Nominations:

    • (a) A person shall be eligible for election as Executive Director when nominated by one or more Governors.

    • (b) Each nomination shall be made on a Nomination Form to be obtained from the Secretary and signed by the Governor or Governors making the nomination.

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

    • (d) On the day preceding the session the Chairman shall, preferably in the Board, announce the nominations received, ask for any further nominations, and close the nominations. The Secretary shall post a list of the persons nominated.

  • 8. Supervision of the Election: The Chairman shall supervise the election and shall appoint such tellers and other assistants as he deems necessary. He may also recess the Session from time to time as he deems necessary.

  • 9. Tally Sheets: The Secretary shall post at the Session and distribute to each Governor and Alternate Governor prior to the election a Tally Sheet and a list of the persons nominated.

  • 10. Distribution of Ballots: One ballot form shall be furnished to each Governor entitled to vote immediately before a ballot is taken. On any particular ballot only ballot forms distributed for that ballot shall be counted.

  • 11. Balloting—Order: The first ballot shall be simultaneous balloting of all the Governors entitled to participate in the election of Executive Directors under Article XII, Section 3(b)(iii), and all of the American Republics entitled to participate in the election of Executive Directors under Article XII, Section 3(b)(iv). The balloting for the Executive Directors elected under Article XII, Section 3(b)(iii), shall then be concluded before any further ballots are taken for the Executive Directors to be elected by the American Republics.

  • 12. Balloting—General: Each ballot shall be taken as follows:

    • (a) The roll of members whose Governors are entitled to vote shall be called in alphabetical order.

    • (b) Immediately after a member’s name is called, the Governor for such member shall deposit his signed ballot in the ballot box.

    • (c) When the roll call shall have been completed and the ballots cast, the Chairman shall cause the ballots to be counted and shall cause to be announced (i) the names of the members whose Governors voted for each nominee and the total number of votes received by such nominee, (ii) the name of each person elected and, in case the votes of any members counted toward, but were not cast for, his election, the names of such members, and (iii) the names of the members whose Governors are entitled to vote on the next ballot, if any.

    • (d) In the event that 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 to be valid.

    • (e) Each of the Governors entitled to vote shall cast for one person all the votes held by him under Article XII, Section 5(a).

  • 13. Election of Executive Directors Under Article XII, Section 3(b)(iii):

    • (a) The provisions of Schedule C as adjusted by these Rules shall govern the election of Directors under this subparagraph.

    • (b) When on any ballot the number of nominees shall not exceed the number of Executive Directors to be elected, each nominee shall be deemed to be elected by the number of votes received by him on such ballot; provided, however, that if on such ballot the votes of any Governor shall be deemed under paragraph 4 of Schedule C to have raised the votes cast for any nominee above fourteen per cent of the eligible votes, no nominee shall be deemed to have been elected who shall not have received on such ballot ten per cent of the eligible votes and a succeeding ballot shall be taken on which any nominee not elected shall be eligible.

  • 14. Election of Executive Directors Under Article XII, Section 3(b)(iv):

    • (a) These Rules shall in place of paragraph 7 of Schedule C govern the election of the Directors to be elected by the American Republics under Article XII, Section 3(b) (iv).

    • (b) If there are more than three nominees, the three nominees receiving the greatest number of votes shall be elected, provided that no nominee shall be elected who receives less than twenty-eight per cent of the eligible votes.

    • (c) When on any ballot two or more Executive Directors remain to be elected and there are the same number of nominees, each nominee shall be elected by the number of votes received by him; provided, that if the votes of any Governor shall be deemed to have raised the votes cast for any nominee above thirty-eight per cent of the eligible votes, no nominee shall be elected on that ballot who shall not have received twenty-eight per cent of the eligible votes and a succeeding ballot shall be taken on which any nominee not elected on the preceding ballot shall be eligible.

  • 15. Balloting—Succeeding Ballots for Election of Executive Directors Under Article XII, Section 3(b)(iii):

    • (a) If, as a result of the first ballot, the number of Executive Directors to be elected in accordance with paragraph 4 above shall not have been elected, a second and, if necessary, further ballots shall be taken. The Governors entitled to vote on such succeeding ballots shall be only (i) those Governors who voted on the preceding ballot for any nominee not elected, and (ii) those Governors whose votes for a nominee elected on the preceding ballot are deemed under paragraph 4 of Schedule C to have raised the votes cast for such nominee above fourteen per cent of the eligible votes.

    • (b) The votes of a Governor shall not be deemed under paragraph 4 of Schedule C to have raised the total votes for a nominee above fourteen per cent of the eligible votes if without the votes of such Governor such total would be more than ten per cent but not more than fourteen per cent of the eligible votes.

    • (c) If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all, of such Governors could be deemed under paragraph 4 of Schedule C to have raised the total votes received by such nominee above fourteen per cent 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 on the next ballot.

    • (d) If a Governor shall abstain from voting on any of the ballots held for the election of Executive Directors under Article XII, Section 3(b)(iii), he shall not be entitled to vote on any subsequent ballot, and his votes shall not be counted, within the meaning of Article XII, Section 3(i), towards the election of any Executive Director; provided, however, that if such abstention shall have first occurred on the last of several ballots, the votes of such Governor shall be deemed to have been cast for the election of the Executive Director elected on such ballot by the least number of votes. If at the time any ballot is taken a member shall not be represented by a Governor at the Annual Meeting or session at which the ballot is taken, the member and its Governor, if any, shall be deemed for the purpose of this paragraph to have abstained from voting on that ballot.

  • 16. Balloting—Succeeding Ballots for Election of Executive Directors Under Article XII, Section 3(b)(iv):

    • (a) If, as a result of the first ballot, the number of Executive Directors to be elected in accordance with paragraph 6 above shall not have been elected, a second and, if necessary, further ballots shall be taken. The Governors entitled to vote on such succeeding ballots shall be only (i) those Governors who voted on the preceding ballot for any nominee not elected, and (ii) those Governors whose votes for a nominee elected on the preceding ballot are deemed to have raised the votes cast for such nominee above thirty-eight per cent of the eligible votes. In determining whether the votes cast by a Governor are to be deemed to have raised the total of any nominee above thirty-eight per cent of the eligible votes, the thirty-eight per cent shall be deemed to include, first, the votes of the Governors casting the largest number of votes for such nominee, then, the votes of the Governor casting the next largest number of votes and so on until thirty-eight per cent is reached.

    • (b) The votes of a Governor under subparagraph (a) above shall not be deemed to have raised the total votes for a nominee above thirty-eight per cent of the eligible votes if without the votes of such Governor such total would be more than twenty-eight per cent but not more than thirty-eight per cent of the eligible votes.

    • (c) If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all of such Governors, could be deemed under subparagraph (a) above to have raised the total votes received by such nominee above thirty-eight per cent 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 on the next ballot.

    • (d) If a Governor shall abstain from voting on any of the ballots held for the election of three Executive Directors to be elected under Article XII, Section 3(b) (iv), he shall remain entitled to vote on subsequent ballots.

  • 17. Elimination of Nominees: If on any ballot two or more nominees shall receive the lowest number of votes, no nominee shall be dropped from the next succeeding ballot, but if the same situation shall continue on such succeeding ballot, the Chairman shall eliminate by lot one of such nominees from the next succeeding ballot.

  • 18. Announcement of Results of Election: After the last ballot of the election, the Chairman shall cause to be distributed to each Governor a statement setting forth the results of the election.

  • 19. Effective Date of Election of Executive Directors: The effective date of the election shall be November 1, 1958. Incumbent elected Executive Directors shall serve through the day preceding such date.

  • 20. 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. Whenever possible, any such question shall be put in general terms without identifying the members or Governors concerned.

Statement of Results of Seventh Regular Election of Executive Directors, October 9, 1958

Candidates Elected Under Article XII, Section 3(b) (iii)
Candidate ElectedMembers Whose Votes Counted Toward ElectionNumber of Votes
Eero AspDenmark930
(Finland)Finland630
Iceland260
Norway750
Sweden1,250
3,820
B. B. CallaghanAustralia2,250
(Australia)Union of South Africa1,250
Viet-Nam375
3,875
Otmar Emminger (Federal Republic of Germany)Federal Republic of Germany3,550
Carlo GragnaniGreece650
(Italy)Italy2,050
Spain1,250
3,950
Pieter LieftinckIsrael325
(Netherlands)Netherlands3,000
Yugoslavia850
4,175
Ahmed Zaki SaadAfghanistan350
(Egypt)Ethiopia310
Iran600
Iraq330
Jordan280
Lebanon295
Pakistan1,250
Philippines400
Saudi Arabia350
Sudan350
United Arab Republic915
5,430
SoemarnoGhana400
(Indonesia)Indonesia1,350
Libya300
Malaya500
Morocco600
Tunisia370
3,520
Andre van CampenhoutAustria750
(Belgium)Belgium2,500
Korea375
Luxembourg350
Turkey680
4,655
Takeshi WatanabeBurma400
(Japan)Ceylon400
Japan2,750
Thailand375
3,925
Ireland abstained550
Candidates Elected Under Article XII, Section 3(b) (iv)
Candidate ElectedMembers Whose Votes Counted Toward ElectionNumber of Votes
Rodrigo GomezCosta Rica300
(Mexico)Cuba750
El Salvador325
Guatemala300
Honduras325
Mexico1,150
Nicaragua325
Venezuela400
3,875
Felipe HerreraArgentina1,750
(Chile)Bolivia350
Chile750
Ecuador350
Paraguay325
Uruguay400
3,925
Octavio ParanaguaBrazil1,750
(Brazil)Colombia750
Dominican Republic350
Haiti325
Panama255
Peru500
3,930
/s / P. Wignaraja/s / Guillermo Sevilla-Sacasa
(Libya)(Nicaragua)
TellerTeller

Report II1

October 4, 1958

Sir:

The Joint Procedures Committee, at its first meeting at 4:00 p.m., on October 4, 1958, considered the matters of business on the agenda of the Board of Governors of the Fund.

I have the honor to submit the following report and recommendations of the Committee:

1. Thirteenth Annual Report

The Committee noted that provision has been made for discussion of the Annual Report at this meeting of the Fund Board of Governors.

2. Financial Statements, Report on Audit, and Administrative Budget

The Committee considered the Report on Audit for the Fiscal Year ended April 30, 1958, the Financial Statements contained therein (Fund Document No. 2 and Appendix VII of the Annual Report), and the Administrative Budget for the Fiscal Year ending April 30, 1959 (Appendix VI of the Annual Report and Fund Document No. 4).

The Committee recommends to the Board of Governors the adoption of the draft resolution set forth in Fund Document No. 3.2

3. General Reserve

The Committee also considered the recommendations of the Executive Directors with respect to the establishment of a General Reserve and the allocation to such reserve of the Fund’s net income for the fiscal year ended April 30, 1958 [Annex I].

The Committee recommends that the Board of Governors approve the recommendation of the Executive Directors and adopt the draft resolution contained in Fund Document No. 5.3

4. Rules and Regulations

The Committee reviewed the amendments to Rules I-2 and I-4(f) of the Rules and Regulations as submitted by the Executive Directors [Annex II].

The Committee recommends adoption by the Board of Governors of the draft resolution set forth in Fund Document No. 6.4

5. Resources of the Fund

Finally, the Committee took up a draft resolution submitted by the Governor for the United States regarding the resources of the Fund (Fund Document No. 8).5

The Committee recommends that the Board of Governors consider the resolution and determine what action to take thereon.

Approved:

/s/ H. Ansiaux/s/ ViWAT
(Belgium)(Thailand)
ChairmanReporting Member

Annex I to Report II

October 1, 1958

Dear Mr. Chairman:

For the fiscal year ended April 30, 1958, the Fund had net income of $5,991,691.89. Under the Articles of Agreement it must be determined annually what part of the Fund’s income shall be placed to reserve and what part, if any, shall be distributed.

The Executive Directors are of the opinion that prudent management of the Fund’s resources requires the establishment of an appropriate reserve. Accordingly, on April 14, 1958, the Executive Directors took the following decision:

On April 30, 1958 and at the end of each month thereafter until further action by the Executive Directors or Board of Governors, the net income of the Fund shall be transferred provisionally to a General Reserve. At the next Annual Meeting it shall be recommended to the Board of Governors that it note with approval the establishment of the General Reserve and the allocation to such reserve of the net income for the fiscal year ended April 30, 1958.

Pursuant to this decision, the Executive Directors recommend that the Board of Governors adopt the attached draft resolution.6

Very truly yours,

/s/

Per Jacobsson

Managing Director

and

Chairman of the Executive Board

Chairman of the Board of Governors

Thirteenth Annual Meeting

International Monetary Fund

Annex II to Report II

October 1, 1958

Dear Mr. Chairman:

In accordance with Section 16 of the By-Laws, the attached amendments to the Rules and Regulations are submitted for review by the Board of Governors.

On December 9, 1957, Rules I-2 and I-4 (f) were amended to extend until December 31, 1958, the then prevailing service charge on transactions and charges on the Fund’s holdings of member currencies in excess of quotas.

These Rules as last amended are set forth in Attachment 1. A proposed Resolution for consideration by the Board of Governors is attached as Attachment 2.7

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

Very truly yours,

/s/

Per Jacobsson

Managing Director

and

Chairman of the Executive Board

Chairman of the Board of Governors

Thirteenth Annual Meeting

International Monetary Fund

Attachment 1

Amendments to the Rules and Regulations Since the Twelfth Annual Meeting

Rule I-2. Text as amended on December 9, 1957 (the part affected by the amendment is shown in brackets):

The service charge payable by a member buying the currency of another member in exchange for its own currency shall be paid at the time the transaction is consummated. The service charge payable for such transactions taking place from December 1, 1951 through [December 31, 1957] December 31, 1958, shall be ½ of 1 per cent.

Former text adopted September 25, 1946, amended November 19, 1951, November 14, 1952, June 26, 1953, October 14, 1953, December 23, 1953, December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, and December 9, 1957.

Rule I-4(f). Text as amended on December 9, 1957 (the part affected by the amendment is shown in brackets):

With respect to each segment of the holdings of a member’s currency to the extent that it represents the acquisition of that currency by the Fund from January 1, 1954 through [December 31, 1957] December 31, 1958:

  • (i) The charge to be levied on each segment to the extent that it is within the first bracket of 50 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next fifteen months, and an additional ½ per cent per annum for each subsequent six months.

  • (ii) The charge to be levied on each segment to the extent that it is within the second bracket of more than 50 per cent and not more than 75 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next nine months, and an additional ½ per cent per annum for each subsequent six months.

  • (iii) The charge to be levied on each segment to the extent that it is within the third bracket of more than 75 per cent and not more than 100 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next three months, and an additional ½ per cent per annum for each subsequent six months.

Former text adopted December 23, 1953, amended December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, and December 9, 1957.

Report IV1

October 10, 1958

Sir:

I have the honor to submit the Report of the Joint Procedures Committee on its second meeting, which was held this morning.

1. Place and Date of Fourteenth Annual Meeting

The Committee recommends that the 1959 Annual Meeting be convened in Washington, preferably during the second half of September 1959.

2. Officers

The Committee recommends that the Governor for Peru be elected Chairman and the Governors for the United States, the United Kingdom, China, France, and India be elected Vice-Chairmen of the respective Boards to hold office until the election of officers at the close of the next Annual Meeting.

3. Joint Procedures Committee

The Committee recommends that a Joint Procedures Committee be established to be available after the termination of this Meeting, and until the selection of a new Joint Procedures Committee 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 Boards. The Committee further recommends that the Joint Procedures Committee shall be composed of the Governors for Peru, Chairman; Sweden, Vice-Chairman; Ceylon, Reporting Member; and Australia, Brazil, China, Colombia, France, Germany, India, Japan, Nicaragua, Pakistan, Saudi Arabia, Sudan, United Kingdom, United States, and Yugoslavia.

4. Resolution of Appreciation

The Committee requested the Reporting Member, in the name of the Committee, to propose the adoption of a resolution of appreciation to our host country.

Approved:

/s/ van Houtte/s/ Viwat
/s/ H. Ansiaux/s/ S. Vinicchayakul
(Belgium)(Thailand)
ChairmanReporting Member

    Other Resources Citing This Publication