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RESTRICTED FUND DOC. 2 4 HY-LAMS 5 < WORLD FUND and BANK Inaugural Meeting March' 16, 1946 BY-LATIS OF THE INTERNATIONAL MONETARY FUND AS APPROVED BY TH3 BOARD OF GOVERNORS These By-Laws are adopted under the authority of, and are v intended to be complementary to, the Articles of Agreement of the International Monetary Fund; and they shall be construed accordingly. In the event of a conflict between anything in these By-Laws and any provision or requirement of the Articles of Agreement, the Articles of Agreement shall prevail. t Sec. 1. Place8 of Business The principal office of the Fund shall be located within the Metropolitan area of '-'aehington, D. 0. , United States of America. The Executive Directors may establish and maintain agencies or branch offices at any place in the territories of other members, whenever it is necessary to do so in order to facilitate the efficient conduct of the business of the Fund. r Sec* 2. Bank Represented The Executive Directors are authorized to invite International Bank for Reoonet-ruetlon and Development a representative of the 3a;ik So meetings or the Board Governors and Executive Directors who may participate meetings, but shall have no vote. the to send of in such The Executive Directors are authorized to accept invitations from the Bank to send a representative of the Fund to participate in nidetings of the Board of Governors or Executive Directors of the Bank. Sec. C5. Notice ojf Keetings The Managing Director shall notify all members of any meeting of the Board of Governors. Notice shall be sent to members by telegram or cable not leas than six weeks prior to the date of any meeting, except that in urgent oases this period may be shortened to http://fraser.stlouisfed.org/ not less than 10 days. Federal Reserve Bank of St. Louis Sec. 4. Board Meetings at Members1 Request Special meetings of the Board shall be called by the Directors whenever requested by five members or by members having one-quarter of the total voting power. Whenever any member requests the Executive Directors to call a special meeting of the Board, the Managing Director shall notify all members of the request together with the reasons assigned for such request. Sec, 5, Attendance of Executive Directors The Executive Directors ma:r attend all meetings of the Board of Governors and may participate in such meetings but an Executive Director shall not be entitled to vote unless he is also a Governor or an Alternate or Is designated as a temporary alternate. Sec. 6. Agenda of Board Meetings The agenda for the meetings of the Board of Governors shall be prepared under the direction of the Executive Directors by the Managing Director and shall be transmitted simultaneously with the notice to the members required to be sent pursuant to Section 3. Additional subjects may be placed upon the agenda by any governor or under special circumstances by the Managing Director at the direction of the Executive Directors provided notice thereof shall have been given to the Fund in writing not less than 7 days prior to the date of the meeting. The Managing Director shall inform the members of any such additions to the agenda as soon as possible. The Board may authorize the placing of any matter upon the agenda even though the required notice shall not have been given. Sec. 7« Election of Chairman and Vice Chairman At each annual meeting the Board of Governors shall select a Governor to act as Chairman and at least two other Governors to act as Vice Chairmen until the next annual meeting. In the absence of the Chairman the Vice Chairman designated by the Chairman shall act In his place. Sec. 8. Secretary The Secretary of the Fund shall serve as Secretary of the Board of Governors. Sec« 9. Minutes The Board shall keep a summary record of its proceedings which shall be available to all members and which shall be filed with the Executive Directors for their guidance. Sec. 10. Report of Executive Directors The Executive Directors shall have prepared for presentation at the annual meeting of the Board of Governors 145 -2- an c an annual report in which shall "be discussed the operations and policies of the Fund and which shall make recommendations to the Board of Governors on the problems confronting the Fund, Sec. 11. Voting Except as otherwise specifically provided in the Articles of Agreement, all decisions of the Board shall be made by a majority of the votes cast. At any meeting the Chairman may ascertain the sense of the meeting in lieu of a formal vote but he shall require a formal vote upon the request of any governor. Whenever a formal vote is required the written text of the motion shall be distributed to the voting members. Sec. 12. Proxies No Governor or Alternate may vote at any meeting by proxy or by any other method than in person, but a member may make provision for the designation of a temporary alternate to vote for the G-overnor at any Board session at which the regularly designated alternate is unable to be present. Sec. 15. Voting Without Meeting Whenever, in the judgment of the Executive Directors, any action by the Fund must be taken by the Board of Governors which should not be postponed until the next regular meeting of the Board and does not warrant the calling of a special meeting of the Board, the Executive Directors shall present to each member by any rapid means of communication a motion embodying the proposed action with a request for a vote by its governor* Votes shall be cast during1 such period as the Executive Dir3ctors may prescribe, provided that no Governor shall vote on any such motion until 7 days after despatch of the motion, unless he is notified that the Executive Directors have waived this requirement. At the expiration of the period prescribed for voting, the Executive Directors shall record the results and the Managing Director shall notify all members. If the replies received do not include a majority of the Governors exercising two-thirds of the total voting power, which is usually required for a quorum of the Board of Governors, the motion shall be considered lost. Sec. 14. Terms of Service (a) Governors and Alternates shall receive their actual transport expenses to and from the place of meeting in attending meetings subsequent to the inaugural meeting, and $50 for each night which attendance at such' meetings requires them to spend away from their normal place of residence, this amount being reduced to $10 for each night when accommodation is included in the price of transportation. (b) Pending the necessary action being taken by members to exempt from national taxation salaries and allowances paid out of the budget of the Fund, the Governors and the Executive Directors, and their Alternates, the Managing Director and the staff members shall be reimbursed by the'Fund for the taxes which they are required to pay on such salaries and allowances. 145 -3- In In computing the amount of tax adjustment to be made with respect to any individual, it shall be presumed for the purposes of the computation that the income received from the Fund is his total income. All salary scales and expense allowances prescribed by this section are stated as net on the above basis. (c) The salary of the Managing Director shall be $30,000 per annum. The Fund shall also pay any reasonable expenses incurred by the Managing Director in the interest of the Fund (inducting travel and transportation expenses for himself, and expenses for his family, and his personal effects in moving once to the seat of the Fund during or immediately before his term of office and in moving once from the seat during or immediately after his term of office). The terms of contract of the Managing Director shall be five years. (&) It shall bs the duty of an Executive Director and his Alternate to devote all the time and attention to the business of the Fund that its interest require, and, between them, to be continuously available at the principal office of the Fund. (e) The maximum salary and expense allowance /including housing, entertainment•and all other expenses except those specified in subsection (fj/ shall be §17,000 for Executive Directors and $11,500 for Alternates. It will be the duty of each Executive Director and each Alternate to state how much of these amounts he intends to draw whether as salary or as 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. 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. (g) Where not specified, it is assumed that the Director and Alternate will be a full time Director and Alternate. '•Jhere it is intended that he shall not devote his full time, it shall be so indicated, tyhere an Executive Director or Alternate indicates that he intends to devote only part of his time to the Fund, his remuneration shall be pro-rated on the basis of a representation by him of the proportion of his time he has devoted to the interest of the Fund. Ke nay make such representation each month. (h) rfhere an individual is serving both Fund and Bank, the aggregate of salary received from both shall not exceed the full annual single salary indicated above. In all cases of salaries or expenses involving dual offices in the Fund or Bank, or both, the individual affected is entitled to take his choice as to which salary or expense he elects, but he shall not be entitled to both. 145 -4- (i) c (i) An individual putting forward a claim for reimbursement for any expenses incurred by him shall include therewith a representation that he has not received and will not claim reimbursement in respect to those expenses from any other source. (j ) Secretarial, staff services, office space, and other services incidental to the performance of the duties of the Executive Directors and Alternates shall be provided by the Fund. Sep. 15. Delegation of Authority The Executive Directors are authorized by the Board of Governors to exercise all the powers of the Fund except those reserved to the Board by Article XII, Section 2(b) and other provisions of the Articles of Agreement. The Executive Directors shall not take any action pursuant to powers delegated by the Board of Governors which is inconsistent with any action taken ^oy the Board. Sec. 16. Rules .and Regulations The Executive Directors are authorized by the Board of Governors to adopt such rules and regulations, including financial regulations, as may be necessary or appropriate to conduct the business of the Fund. Any rules and regulations so adopted, and any amendments thereof, shall be subject to review by the Board of Governors at their next annual meeting, Sec. 17. Vacant Directorships Whenever a new Director must be elected because of a vacancy requiring an election, the Managing Director shall notify the members who elected the former Director of the existence of the vacancy. He may convene a meeting of the Governors of such countries exclusively for the purpose of electing a new Director; or he may request nominations by mail or telegraph and conduct ballots hy mail or telegraph. Successive ballots shall be cast until one candidate has a majority; and after each ballot, the candidate with the smallest number of votes shall be dropped from the next ballot. When a new elective director is named, the office of alternate shall be deemed to be vacant and an alternate shall be named by the newly-elected director. Sec. 16. Additional Directors At least one month before the second and subsequent regular elections of directors, the Managing Director shall notify all members of the two members whose currencies held by the Fund have been, on the average over the preceding two years, reduced below their quotas by the largest absolute amounts. He shall state whether either or both are entitled to appoint a director in accordance with Article XII, Section 3(c) of the Articles of Agreement. When a member becomes entitled to appoint a director in accordance with Article XII, Section 3(bV(i) and 5(c) of the Articles of Agreement, it shall not participate in the election of any director. 145 -5- Sec. 19. o Sec. 19. Heioresentation of Members Not Entitled to Airooint a Director Whenever the Executive Directors are to consider a request made by,, or a matter particularly affecting a member not entitled to appoint a director, the member shall be promptly informed in writing of the date set for its consideration. No final action shall be taken by the Executive Directors, nor any question affecting the member submitted to the Board of Governors, until the member has been offered a reasonable opportunity to present its views and to be heard at a meeting if the Executive Directors,of which the member has had reasonable notice. Any member, so electing, may waive this provision. Sec. 20. Budget and Audits 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. The Executive Directors shall have an audit of the accounts of the Fund made at least once each year and on the basis of this audit shall submit a balance sheet and a statement of operations of the Fund to the Board of Governors to be considered by them at their annual meeting. Sec. 21. Applications jfor Membership Subject to any special provisions that may be made for countries listed in Schedule A of the Articles of Agreement, any country may apply for membership in the Fund by filing with the Fund an application setting forth all relevant facts. '•Then submitting an application to the Board of Governors, the Executive Directors after consultation with the applicant country shall recommend to the Board the amount of the quota, the form of payment, the parity of the currency, conditions regarding exchange restrictions, and such other conditions as, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe. Sec. 22. Compulsory Withdrawal Before any member is required to withdraw from membership in the Fund, the matter shall be considered by the Executive Directors who shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing. The Executive Directors shall recommend to the Board of Governors the action they deem appropriate. The member shall be informed of the recommendation and the date on which its case will be considered by the Board and shall be given a reasonable time within which to present its case to the Board both orally and in writing. Any member so electing may waive thls provision. Sec. 25. Settlement of Disagreements The President of the International Gourt of Justice is prescribed as the authority to appoint an umpire whenever there arises a disagreement of the type referred to in Article XVIII(c) of the Articles of Agreement. 145 -S-
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