Document ID: chunk:federal_register_of_legislation:C2020C00320:schedule:1:p11
Version: federal_register_of_legislation:C2020C00320
Segment Type: schedule
Provision Reference: sch 1 (pt 11/31)
Character Range: 30147–32988

the flow of investments among developing member countries.

Article 24.   Guarantees of Sponsored Investments

 In addition to the guarantee operations undertaken by the Agency under this Chapter, the Agency may guarantee investments under the sponsorship arrangements provided for in Annex I to this Convention.

CHAPTER IV

Financial Provisions

Article 25.   Financial Management

 The Agency shall carry out its activities in accordance with sound business and prudent financial management practices with a view to maintaining under all circumstances its ability to meet its financial obligations.

Article 26.   Premiums and Fees

 The Agency shall establish and periodically review the rates of premiums, fees and other charges, if any, applicable to each type of risk.

Article 27.   Allocation of Net Income

 (a)  Without prejudice to the provisions of Section (a) (iii) of Article 10, the Agency shall allocate net income to reserves until such reserves reach five times the subscribed capital of the Agency.

 (b)  After the reserves of the Agency have reached the level prescribed in Section (a) above, the Council shall decide whether, and to what extent, the Agency's net income shall be allocated to reserves, be distributed to the Agency's members or be used otherwise. Any distribution of net income to the Agency's members shall be made in proportion to the share of each member in the capital of the Agency in accordance with a decision of the Council acting by special majority.

Article 28.   Budget

 The President shall prepare an annual budget of revenues and expenditures of the Agency for approval by the Board.

Article 29.   Accounts

 The Agency shall publish an Annual Report which shall include statements of its accounts and of the accounts of the Sponsorship Trust Fund referred to in Annex I to this Convention, as audited by independent auditors. The Agency shall circulate to members at appropriate intervals a summary statement of its financial position and a profit and loss statement showing the results of its operations.

CHAPTER V

Organization and Management

Article 30.   Structure of the Agency

 The Agency shall have a Council of Governors, a Board of Directors, a President and staff to perform such duties as the Agency may determine.

Article 31.   The Council

 (a)  All the powers of the Agency shall be vested in the Council, except such powers as are, by the terms of this Convention, specifically conferred upon another organ of the Agency. The Council may delegate to the Board the exercise of any of its powers, except the power to:
 (i) admit new members and determine the conditions of their admission;
 (ii) suspend a member;
 (iii) decide on any increase or decrease in the capital;
 (iv) increase the limit of the aggregate amount of contingent liabilities pursuant to