Abstract

Chairman—Oman

Chairman—Oman

Vice Chairmen—Iceland, Mauritius

Reporting Member—Belize

Other Members

Albania, Argentina, Bosnia and Herzegovina, Cape Verde, Ecuador, El Salvador, Eritrea, France, The Gambia, Germany, Ireland, Japan, Republic of Korea, Saudi Arabia, Singapore, Slovenia, Sri Lanka, United Kingdom, United States

Report I1

September 29, 2002

Mr. Chairman:

At the meeting of the Joint Procedures Committee held on September 27, 2002, 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. 2002 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 International Monetary and Financial Committee

The Committee noted that a presentation would be made by the Chairman of the International Monetary and Financial Committee on September 29, 2002.1

The Committee recommends that the Board of Governors of the Fund thank the International Monetary and Financial Committee for its work.

3. 2002 Regular Election of Executive Directors

The Committee noted that the 2002 Regular Election of Executive Directors of the Fund would be completed on September 29, 2002 and that the next Regular Election of Executive Directors would take place in 2004.

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, 2002, the Financial Statements contained therein (Fund Document No. 7 and Appendix IX of the 2002 Annual Report), and the Administrative Budget for the Financial Year ending April 30, 2003 and the Capital Budget for capital projects beginning in Financial Year 2003 (Chapter 8 of the 2002 Annual Report).

The Committee recommends that the Board of Governors of the Fund adopt the draft Resolution set forth in Fund Document No. 8.2

Approved:

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Annex I to Report I REGULATIONS FOR THE CONDUCT OF THE 2002 REGULAR ELECTION OF EXECUTIVE DIRECTORS

1. Definitions: In these Regulations, unless the context otherwise requires:

(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 2002 Regular Election of Executive Directors.

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

2. 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); or

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

3. 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.

4. 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.

5. Number of Executive Directors to be Elected: Nineteen Executive Directors shall be elected. In applying Schedule E of the Articles to the election, “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.

6. 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.

7. Nominations:

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

(b) Nominations may be made from August 27, 2002 through September 9, 2002. 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 by rapid means of communication.

(c) Upon the closing of nominations, the Secretary shall, by rapid means of communication, send to all Governors eligible to vote in the election the list of candidates for the election, together with an invitation to Governors to vote in the first ballot.

8. 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, with the Secretary either by rapid means of communication or in person. When a ballot has been completed, the Secretary shall cause the ballot forms to be counted and the names of the persons elected to be announced and communicated to Governors by rapid means of communication.

(c) If the tellers should 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.

(d) 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.

(e) Voting for the first ballot shall take place from September 10, 2002 through September 29, 2002. If a second or subsequent ballot is necessary, the Secretary shall announce and communicate the names of the candidates to be voted on, the members whose Governors are entitled to vote, and the timing for the second or subsequent ballot.

(f) 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(i)(iii) toward the election of any Executive Director.

(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 13 of these Regulations shall apply.

9. 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.

10. 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 nine 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.

11. 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 nine 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 four percent of eligible votes.

12. If the votes cast by a Governor raise the total votes received by a candidate from below to above nine 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 nine percent.

13. 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 paragraph 15 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.

14. Announcement and Review of Result:

(a) After the last ballot, the Secretary 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, 2002.

15. Effective Date of Election of Executive Directors: The effective date of election shall be November 1, 2002, 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, 2002.

16. 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. 57–4, August 19, 2002

Statement of Results of Election, September 29, 2002

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Report III1

September 29, 2002

Mr. Chairman:

The Joint Procedures Committee met on September 27, 2002 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) would be presented to the Boards of Governors of the Fund and Bank on September 29, 2002 pursuant to paragraph 5 of Resolutions Nos. 29-9 and 294 of the Fund and Bank, respectively (Fund Document No. 5).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 2002/03

The Committee recommends that the Governor for Switzerland be Chairman and that the Governors for Chad and Thailand 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: Benin, Brazil, Cambodia, Chad, Cyprus, Denmark, France, Germany, India, Japan, Luxembourg, Malawi, Pakistan, Portugal, St. Kitts and Nevis, Saudi Arabia, Swaziland, Switzerland, Thailand, United Kingdom, United States, Uruguay, and Venezuela.

It is recommended that the Chairman of the Joint Procedures Committee shall be the Governor for Switzerland, and the Vice Chairmen shall be the Governors for Chad and Thailand, and that the Governor for Pakistan shall serve as Reporting Member.

Approved:

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RESOLUTIONS

Resolution No. 56-1 Increase in the Quota of the People’s Republic of China

Under date of September 2, 1997, the Government of the People’s Republic of China requested a special increase in its quota to better reflect its position in the world economy following the resumption of Chinese sovereignty over Hong Kong on July 1, 1997. The Executive Board recommended on January 4, 2001 that the Board of Governors agree to the request and approve an increase in the quota of China from SDR 4,687.2 million to SDR 6,369.2 million, and resolved that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on January 5, 2001, for a vote without meeting:

Resolved:

That the quota of China shall be increased from SDR 4,687.2 million to SDR 6,369.2 million, provided that China has consented in writing to the increase and has paid SDR 420.5 million in special drawing rights or usable currencies and the remainder of the increase in the currency of China. The increase shall become effective when both the consent and the full payment have been received by the Fund, but not before the effective date of this Resolution. The written consent must be executed by a duly authorized official of China. Both the written consent and payment of the increase in full shall be made promptly and in any event not later than 30 days after the effective date of this Resolution, provided that the Executive Board may extend the period within which the consent and the payment may be made as it may determine.

The Board of Governors adopted the foregoing Resolution, effective February 5, 2001.

Resolution No. 56-2 Direct Remuneration of Executive Directors and their Alternates

Pursuant to Section 14(e) of the By-Laws, the 2001 Joint Committee on the Remuneration of Executive Directors and their Alternates on July 9, 2001 directed the Secretary of the Fund to transmit its report and recommendations to the Board of Governors of the Fund. The Committee’s report contained the following proposed Resolution for adoption by the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 10, 2001 for a vote without meeting:

Resolved:

That, effective July 1, 2001, the remuneration of the Executive Directors of the Fund and their Alternates pursuant to Section 14(e) of the By-Laws shall be paid in the form of salary without a separate supplemental allowance, and such salary shall be paid at the annual rate of $175,910 per year for Executive Directors and $152,160 per year for their Alternates.

The Board of Governors adopted the foregoing Resolution, effective August 15, 2001.

Resolution No. 56-3 2001 Annual Meeting Cancellation

The Executive Board resolved on October 26, 2001 to recommend the cancellation of the 2001 Annual Meeting of the IMF Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on October 29, 2001 for a vote without meeting:

Resolved:

That the Board of Governors 2001 Annual Meeting that was scheduled to be held in Washington, D.C. is canceled.

The Board of Governors adopted the foregoing Resolution, effective November 27. 2001.

Resolution No. 56-4 Reports on Audit, Financial Statements, and Administrative and Capital Budgets

The Executive Board resolved on October 26, 2001 that upon the approval of the Resolution No. 56–3, the formal business of the 2001 Annual Meeting should be conducted by mail.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on December 5, 2001, for a vote without meeting:

Resolved:

That the Board of Governors of the International Monetary Fund considers the Reports on Audit for the Financial Year ended April 30, 2001, the Financial Statements contained therein, and the Administrative Budget for the Financial Year ending April 30, 2002 and the Capital Budget for capital projects beginning in Financial Year 2002 as fulfilling the requirements of Article XII, Section 7 of the Articles of Agreement and Section 20 of the By-Laws.

The Board of Governors adopted the foregoing Resolution, effective January 10, 2002.

Information on the Administrative Budget for the financial year ending April 30, 2002 and the Capital Budget for capital projects beginning in financial year 2002. which have been approved by the Executive Board, is presented in Chapter 8 of the Fund’s 2001 Annual Report.

Resolution No. 57-1 Membership for East Timor

On March 22, 2002 the Government of East Timor applied for admission to membership in the International Monetary Fund. The Executive Board decided on May 1, 2002 that action on the application should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on May 1, 2002 for a vote without meeting:

WHEREAS, on March 22, 2002, the Second Transitional Government of East Timor applied for the admission, on the attainment by East Timor of constitutional independence, of East Timor to membership in the International Monetary Fund in accordance with Article II, Section 2 of the Articles of Agreement of the Fund;

WHEREAS, East Timor is scheduled to attain constitutional independence on May 20, 2002;

WHEREAS, pursuant to Section 21 of the By-Laws of the Fund, the Executive Board has consulted with the representative of East Timor and has agreed upon the terms and conditions which, in the opinion of the Executive Board, the Board of Governors may wish to prescribe for admitting East Timor to membership in the Fund;

NOW, THEREFORE, the Board of Governors, having considered the recommendations of the Executive Board, hereby resolves that the terms and conditions upon which East Timor shall be admitted to membership in the Fund shall be as follows:

1. Definitions: As used in this Resolution:

(a) the term “Fund” means the International Monetary Fund;

(b) the term “Articles” means the Articles of Agreement of the Fund, as amended; and

(c) the term “SDRs” means Special Drawing Rights of the Fund.

2. Quota: The quota of East Timor in the Fund shall be SDR 8.2

3. Payment of Subscription: The subscription of East Timor shall be equal to its quota. East Timor shall pay 24 percent of its subscription in SDRs or in the currencies of other members selected by the Managing Director from those currencies that the Fund would receive in accordance with the Fund’s quarterly financial transactions plan in effect at the time of payment. The balance of the subscription shall be paid in the currency of East Timor.

4. Timing of Payment of Subscription: East Timor shall pay its subscription within sixmonths after accepting membership in the Fund.

5. Exchange Transactions with the Fund and Remuneration: East Timor may not engage in transactions under Article V, Section 3, or receive remuneration under Article V, Section 9, until its subscription has been paid in full.

6. Exchange Arrangements: Within 30 days after accepting membership in the Fund, East Timor shall notify the Fund of the exchange arrangements it intends to apply in fulfillment of its obligations under Article IV, Section 1 of the Articles.

7. Representation and Information: Before accepting membership in the Fund, East Timor shall represent to the Fund that it has taken all actions necessary to sign and deposit the Instrument of Acceptance and to sign the Articles as contemplated by paragraphs 8(a) and 8(b) of this Resolution, and East Timor shall furnish to the Fund such information in respect of such action as the Fund may request.

8. Effective Date of Membership: After the Fund shall have informed the government of the United States of America that East Timor has complied with the conditions set forth in paragraph 7 of this Resolution, East Timor shall become a member of the Fund on the date when East Timor shall have complied with the following requirements:

(a) East Timor shall deposit with the government of the United States of America an instrument stating that it accepts in accordance with its laws the Articles 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 of its obligations under the Articles and this Resolution; and

(b) East Timor shall sign the original copy of the Articles held in the Archives of the government of the United States of America.

9. Period of Acceptance of Membership: East Timor may accept membership in the Fund pursuant to this Resolution on or after the date on which it attains constitutional independence, but not later than six months after this Resolution has been adopted by the Board of Governors; provided, however, that if the circumstances of East Timor are deemed by the Executive Board to warrant an extension of the period during which East Timor may accept membership pursuant to this Resolution, the Executive Board may extend such period until such later date as it may determine.

The Board of Governors adopted the foregoing Resolution, effective May 29, 2002.

Resolution No. 57-2 Direct Remuneration of Executive Directors and their Alternates

Pursuant to Section 14(e) of the By-Laws, the 2002 Joint Committee on the Remuneration of Executive Directors and their Alternates on June 25, 2002 directed the Secretary of the Fund to transmit its report and recommendations to the Board of Governors of the Fund. The Committee’s report contained the following proposed Resolution for adoption by the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 1, 2002 for a vote without meeting:

Resolved:

That, effective July 1, 2002, the remuneration of the Executive Directors of the Fund and their Alternates pursuant to Section 14(e) of the By-Laws shall be paid in the form of salary without a separate supplemental allowance, and such salary shall be paid at the annual rate of $182,590 per year for Executive Directors and $157,940 per year for their Alternates.

The Board of Governors adopted the foregoing Resolution, effective August 5, 2002.

Resolution No. 57-3 Forthcoming Annual Meetings

The Executive Board decided on July 15, 2002 that action in connection with the places and dates of forthcoming Annual Meetings from 2004 through 2006 should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 16, 2002 for a vote without meeting:

Resolved:

That the 2004 and 2005 Annual Meetings shall be convened in Washington, D.C. beginning on Monday, September 27, 2004 and Monday, September 26, 2005;

That the invitation of the Government of Singapore to hold the Annual Meetings in Singapore in 2006 be accepted; and

That the 2006 Annual Meetings be convened on Tuesday, September 19, 2006.

The Board of Governors adopted the foregoing Resolution, effective August 15, 2002.

Resolution No. 57-4 2002 Regular Election of Executive Directors

The Executive Board decided on July 19, 2002 that action in connection with the regulations for the conduct of the 2002 regular election of Executive Directors should not be postponed until the time of the next regular meeting of the Board of Governors at which the election would take place.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 22, 2002 for a vote without meeting:

Resolved:

(a) That notwithstanding paragraph (b) of Resolution No. 55-3 adopted on August 16, 2000, which provides that “a Regular Election of Executive Directors shall take place at the Annual Meeting of the Board of Governors in 2002”, the proposed Regulations for the Conduct of the 2002 Regular Election of Executive Directors are hereby adopted; and

(b) That a Regular Election of Executive Directors shall take place in 2004.

The Board of Governors adopted the foregoing Resolution, effective August 19, 2002.

Resolution No. 57-5 Financial Statements, Report on Audit, and Administrative and Capital Budgets

Resolved:

That the Board of Governors of the International Monetary Fund considers the Report on Audit for the Financial Year ended April 30, 2002, the Financial Statements contained therein, and the Administrative Budget for the Financial Year ending April 30, 2003 and the Capital Budget for capital projects beginning in Financial Year 2003 as fulfilling the requirements of Article XII, Section 7 of the Articles of Agreement and Section 20 of the By-Laws.

The Board of Governors adopted the foregoing Resolution, effective September 29, 2002.

1

Report I and the Resolutions contained therein were adopted by the Board of Governors of the Fund in Joint Session with the Board of Governors of the Bank, IFC, and IDA on September 29, 2002.

1

See pages 18-20.

2

Resolution No. 57-5; see page 270.

1

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 September 29, 2002.

2

See pages 21-23.