International Monetary Fund (Quota Increase and Agreement Amendments) Act 1991 (Cth)

International Monetary Fund

(Quota Increase and Agreement Amendments)

Act 1991

No. 182 of 1991

An Act to make provisions relating to an increase in

Increase and Agreement Amendments) Act 1991.

Australia's quota in the International Monetary Fund, and to amend the International Monetary Agreements Act 1947

to implement certain amendments to the Articles of

Agreement of the International Monetary Fund

[Assented to 6 December 1991]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the International Monetary Fund (Quota

International Monetary Fund (Quota Increase and

Agreement Amendments) No. 182, 1991,

Commencement

2.(1) Parts 1 and 2 commence on the day on which this Act receives the Royal Assent.

(2) Subject to subsection (3), Part 3 commences on a day to be fixed by Proclamation, being a day not earlier than the day on which the Prescribed Amendment of the Fund Agreement enters into force in accordance with that Agreement.

(3) If Part 3 does not commence under subsection (2) within the period of 6 months beginning on the day on which the Prescribed Amendment enters into force, it commences on the first day after the end of that period.

Definitions

3. In this Act:

"Agreements Act" means the International Monetary Agreements

Act 1947;

"Prescribed Amendment", in relation to the Fund Agreement, means those amendments to the Fund Agreement made in accordance with that Agreement that are the same as the amendments set out in the Schedule.

Expressions have the same meaning as in the Agreements Act

4. In this Act, expressions have the same meaning as they have in the Agreements Act.

PART 2—INCREASE IN AUSTRALIA'S QUOTA IN THE FUND

The Treasurer may consent to the increase in Australia's quota

5. The Treasurer may, on behalf of Australia, consent to the increase in Australia's quota in the Fund to 2,333,200,000 special drawing rights.

Issue of securities

6. Section 7 of the Agreements Act applies to any payment that is to be made by Australia because of the increase in Australia's quota in the Fund as that section applies to payments to the Fund under that Act.

Appropriation

7.(1) This section applies to money necessary to make any payment that is to be made by Australia in foreign currency because of the increase in Australia's quota in the Fund mentioned in section 5.

International Monetary Fund (Quota Increase and

Agreement Amendments) No. 182, 1991

(2) There is to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, the money to which this section applies.

PART 3—AMENDMENTS OF SCHEDULE 1 TO THE

AGREEMENTS ACT

Amendments of Schedule 1 to the Agreements Act

8. Schedule 1 to the Agreements Act is amended as set out in the

Schedule.

SCHEDULE Section 8

AMENDMENTS OF SCHEDULE 1 TO THE AGREEMENTS ACT

Section 3(i) of Article XII:

Add at the end:

"(v) When the suspension of the voting rights of a member is

terminated under Article XXVI, Section 2(b), and the member is not entitled to appoint an Executive Director, the member may agree with all the members that have elected an Executive Director that the number of votes allotted to that member shall be cast by such Executive Director, provided that, if no regular election of Executive Directors has been conducted during the period of the suspension, the Executive Director in whose election the member had participated prior to the suspension, or his successor elected in accordance with paragraph 3(c)(i) of Schedule L or with (f) above, shall be entitled to cast the number of votes allotted to the member. The member shall be deemed to have participated in the election of the Executive Director entitled to cast the number of votes allotted to the member.".

Section 2 of Article XXVI:

Omit the Section (except the heading), substitute:

"(a) If a member fails to fulfil any of its obligations under this

Agreement, the Fund may declare the member ineligible to use the general resources of the Fund. Nothing in this Section shall be deemed to limit the provisions of Article V, Section 5 or Article VI, Section 1.

(b) If, after the expiration of a reasonable period following a declaration of ineligibility under (a) above, the member persists in its failure to fulfil any of its obligations under this Agreement, the Fund may, by a seventy percent majority of the total voting power, suspend the voting rights of the member. During the period of the suspension, the provisions of Schedule L shall apply. The Fund may, by a seventy percent majority of the total voting power, terminate the suspension at any time.

International Monetary Fund (Quota Increase and

Agreement Amendments) No. 182, 1991

SCHEDULE—continued

(c) If, after the expiration of a reasonable period following a decision of suspension under (b) above, the member persists in its failure to fulfil any of its obligations under this Agreement, that member may be required to withdraw from membership in the Fund by a decision of the Board of Governors carried by a majority of the Governors having eighty-five percent of the total voting power.

(d) Regulations shall be adopted to ensure that before action is taken against any member under (a), (b), or (c) above, the member shall be informed in reasonable time of the complaint against it and given an adequate opportunity for stating its case, both orally and in writing.".

Paragraph 5 of Schedule D:

Add at the end:

"(j) When an Executive Director is entitled to cast the number of

votes allotted to a member pursuant to Article XII, Section 3(i)(v), the Councillor appointed by the group whose members elected such Executive Director shall be entitled to vote and cast the number of votes allotted to such member. The member shall be deemed to have participated in the appointment of the Councillor entitled to vote and cast the number of votes allotted to the member.".

Schedule 1:

Add at the end (after Schedule K):

"SCHEDULE L

SUSPENSION OF VOTING RIGHTS

In the case of a suspension of voting rights of a member under Article

XXVI, Section 2(b), the following provisions shall apply:

1. The member shall not:

(a)	participate in the adoption of a proposed amendment of this Agreement, or be counted in the total number of members for that purpose, except in the case of an amendment requiring acceptance by all members under Article XXVIII(b) or pertaining exclusively to the Special Drawing Rights Department;
(b)	appoint a Governor or Alternate Governor, appoint or participate in the appointment of a Councillor or Alternate Councillor, or appoint, elect, or participate in the election of an Executive Director.

2. The number of votes allotted to the member shall not be cast in any organ of the Fund. They shall not be included in the calculation

International Monetary Fund (Quota Increase and

Agreement Amendments) No. 182, 1991

SCHEDULE—continued

of the total voting power, except for purposes of the acceptance of a proposed amendment pertaining exclusively to the Special Drawing Rights Department.

3.	(a)	The Governor and Alternate Governor appointed by the member shall cease to hold office.
(b)	The Councillor and Alternate Councillor appointed by the member, or in whose appointment the member has participated, shall cease to hold office, provided that, if such Councillor was entitled to cast the number of votes allotted to other members whose voting rights have not been suspended, another Councillor and Alternate Councillor shall be appointed by such other members under Schedule D, and, pending such appointment, the Councillor and Alternate Councillor shall continue to hold office, but for a maximum of thirty days from the date of the suspension.
(c)	The Executive Director appointed or elected by the member, or in whose election the member has participated, shall cease to hold office, unless such Executive Director was entitled to cast the number of votes allotted to other members whose voting rights have not been suspended. In the latter case:

(i) if more than ninety days remain before the next regular election of Executive Directors, another Executive Director shall be elected for the remainder of the term by such other members by a majority of the votes cast; pending such election, the Executive Director shall continue to hold office, but for a maximum of thirty days from the date of suspension;

(ii) if not more than ninety days remain before the next

regular election of Executive Directors, the Executive Director shall continue to hold office for the remainder

of the term.

4. The member shall be entitled to send a representative to attend any meeting of the Board of Governors, the Council, or the Executive Board, but not any meeting of their committees, when a request made by, or a matter particularly affecting, the member is under consideration.".

[Minister's second reading speech made in—

House of Representatives on 4 September 1991

Senate on 6 November 1991]