WfflTED NATIONS
ECONOMIC
SOCIAL COUNC AND
ECONOMIC COMMISSION FOR AFRICA __
Committee of Nine on the Preparatory * for the African Development Bank
Distr.
LIMITED
B/CN.14/ADB/66 10 August 1964
Original: ENGLISHOFFICE
FILE Cflpy
;'■>. TO, 8£. TAKEN OUT DRAFT HEPOHT OF THE COMMITTEE OF HIKE Oil
PROCEDURE FOE THE ELECTIOH OF THE DIRECTORS OF THE AFRICAN DEVELOPMENT BANK
(prepared by the Executive Secretary)
INTRODUCTION
4t its fourth session held at Addis Abate from 13 to 17 July 1964, the Committee of Nine considered a Note by the Executive Secretary on the Procedure for the Election of the
Directors of the African Development Bank (e/CS.H/ADB/^) .
It approved the suggestions contained in that document wxth some edifications and requested the Executive Secretary to re-cast the Note in the form of a Draft, Report and to .utaxt xt
to the Committee for adoption.
64-3126
E/CN.14/ADB/66
■ ■' "DRAFT REPORT OF THE COMMITT3E OF NINE ON-. ...
■ ' PROCEDURE FOR THE ■ELECTION-OF THE: DIRECTORS,-.,,: .- ■ ■ . . OF THE AFRICAN DEVELOPMENT BANK ■ . ... ■■
1. The ADB. Agreement provides that at its first meeting- the Board of Governors of the Bank shall .elect nine Directors (iirt. 66(2) (a) ).
2. In'ccanpikn with this provision of the Agreement, the Committee of Nine agreed to consider - in conformity with .para, ^(e) of its . mandate^- certain procedural problems relating to. the election of the Directors of the ADB and submit; a Report on its f indings :to ,the ,Bank..
It hopes its Report will he of assistance to the .Board.of Governors when, at its first meeting, it proceeds, to the election .of Directors.
3. The Committee recalls that, as the ADB Agreement-expressly states, the Board of Governors, in electing the Directors, ."shall. . have due regard to the high-competence in economic and financial matters required for the office" (ij?t..33(l) ). This would, seem to imply that the nomination-of candidates for-Directors must he
accompanied by precise information on their past experience, and
expertise. ■ ' ■
4. Thus, the Committee of Nine considers it advisable that the Board of Governors should resolve that nomination of candidates for Directors should1 precede their .election. ■ Such nominations, it
suggests, should be made, at the. latest., one hour before the opening of the meeting of the Board at Which the'voting is.to.take place.
The nominations proffered, together with the relevant information on the candidates,-- should be entered: in.-a-,,list circulated to all the.
Governors. ■■:■,■■■ . ■
1/ Resolution-3.on the Preparatory Work for the Establishment of the
African Development Bank, adopted by the Conference of Finance
Ministers-1 at 'its' final Plenary Session, on 4 August .1963 at Khartoum
e/CN.14/ADb/66
Page 2
5- It may "be recalled that only Governments of member countries - i.e. Governments -which have complied with all the procedural and other conditions for acquisition of membership of the Sank - may validly
appoint Governors and thai; only nationals of such countries are eligible as Directors. The ADB Agreement provides that only Governors attending the meeting of the Soard - or their Alternates - may vote and that each Governor shall cast all votes of .the member he represents for a single
person (Annex B,-para.(l), ADB Agreement). It is proposed that a list of the Governors (and the corresponding member countries) entitled to
participate in the election, together with the number of the votes, of each of them, the total number of votes, and the critical percentages involved in the election, be circulated before the election* .
6. In this connexion, the Committee furthermore proposes that the balloting should be done by means of signed ballot papers to. be pre pared by the secretariat. These papers should contain the name of the
voting Governor (or his Alternate); the member country he represents;
the number of votes to which he is entitled;, a place for the name of the particular nominee for whom he votes and the name of that nominee's member country; and, finally, a place for the signature.
7. If this procedure" is adopted, ballot papers should be marked first ballot, second ballot, etc., as several ballots may take place before the nine Directors are elected? each of the ballot papers should also bear an indication of the time when it is handed to the Governor eligible to participate in the election. This provision may be useful in determining the validity of ballot papers, .i.e. only papers distributed before the roll of Governors who may vote is called should be considered valid and therefore count at the election.
8. Annex B to the ADB Agreement which sets out the rules for the election of the Directors, provides that each of the nine persons re ceiving the highest number of votes shall be elected Director, provided that he has received not less than ten per cent of the total voting power
Page 3
of the members. The Committee proposes that when all the "ballots have been cast, the Chairman of the Board .of Governors . should announces
(i) the number of votes received "by each nominee
together with the names of Governors who votedj and
(ii) the name of each person elected at the ballot
together with the names of Governors whose votes contributed to his election.
Should the need arise for additional balloting,—' the Chairman should announce the names of Governors who are entitled to participate in the
.ot^ 3/
next ballot—' as well as the names of the persons who are no longer
2/
eligible .-
9. In this onnnoxion s the Committee .considered: (a) whether..-
additional balloting could take place if the full number of Dire.ctors
were not elected on the first ballot 5 (b) whether a Governor is
entitled to abstain from voting at any ballot during the course of an
election; (c) how the votes received by an elected Director should be
finally adjusted when one or more of the Governors who contributed to
1/ If nine persons are not elected at the first ballot, a second ballot
shall be cast (Annex B para.(3)»' ADB Agreement).
2/, Governors who have cast votes for persons elected at the first ballot shall not vote at the second ballot unless it is deemed that the votes cast in the election of one person by them have raise4...the. votes for that person above twelve per cent of the total voting power of the members. In determining whether the votes cast by the Governor shall be deemed to have raised the total number of votes for any person
above twelve per cent, such twelve per cent shall be deemed to include, first, the votes of the Governor casting the highest number of votes for that person and then, in diminishing order, the votes of each Governor casting the next highest number until twelve per cent is
attained (Annex B'para.(4)(a),'ADB Agreement).
_3/ Upon each ballot, candidates receiving the lowest number of votes
will not be eligible for the next ballot (Annex B para.(3), ADB
Agreement).
Page 4
his election are entitled to participate in an additional 'ballot; (d)
the procedure, if two Governors with an equal number of votes vote for one nominee and either of them could be deemed, under the voting rules, to have raised the nominee's total beyond the specified maximum, for determining which Governor has raised the number of votes that the
nominee received beyo.id the maximum; (e) how "the lowest number of votes'1 should be determined? and (f) the procedure to he followed if two or
more nominees were to receive the same "lowest number oi votes'1.
10. The ADB Agreement is quite clear as regards the number of.the Directors to be elected;—' Nine Directors must be elected... Paragraphs
(3) and (5) of Annex B thereto provide that, if that number of Directors
is not elected at the first ballot, a second ballot shall be held and if, after the second ballot, nine persons are not elected, further ballots shall be cast.
11. In view of the fact that not all the thirty Signatory Governments may acquire the status of members of the.Bank at the time -of -the .first meeting of the Board of Governors at which the election of .the Directors must take place,—' the Committee examined whether the Board of Governors
2/
could postpone the election of some of the nine Directors. However, the ADB Agreement is categorical on the point that all the .nine Directors
should be elected at the first meeting'of the Board (Art. 66(2)(a) ).
A proposal to postpone the election of some Directors would therefore
1/ Art. 66 (2) (a).
2/ Under the ADB Agreement, a,ny Signatory. Government which deposits
the instrument of ratification before the date on which the Agreement enters into force becomes a member of the Bank on that date. Any other Signatory becomes a member on the date on which it deposits its instrument of ratification. Instruments of ratification may be
deposited until 30 June 1965 (Art. 64(1) (a) and (b) ).
E/C2J.14/ADB/66
Page 5appear to "be contrary to the intentions of those who drafted the
Agreement.
12. The question may arise whether a Governor who has abstained from voting at, for instance, the first "ballot may participate in the following ballot. Bub-paragraphs (a) and (b) of para. (3) of Annex B
state that only Governors who voted in the first ballot for a person
not elected and Governors whose votes are deemed to have raised the votes cast for a person who has been elected above twelve per cent of 1 the eligible votes, may vote at a second ballot. Thus, the true
objection to the right to vote in further ballots seems to be the fact
that votes cast in preceding ballots were effective in securing anelection. It seems, therefore, that a Governor who abstains from voting at the first ballot is not barred from voting at subsequent ballots.
13. An elected Director carries with him the aggregate votes that counted towards his election. It may be said, however, that if a Governor whose vote for an elected person is deemed to have raised the total number of votes for that person above twelve per cent, partici
pates in a second ballot by casting his votes for another person, (i)
the votes of that Governor shall not count any more for the person
elected on the first ballot; and (ii) that Governor, if he votes again, shall cast all his votes for the other person even if the total number of votes cast for that person thereby exceeds twelve per cent (Annex B, para. (4) (b) ).
14. If two Governors with an equal number of votes vote for the same non.inee and either of them raises the nominee's total above ten per cent, it will be necessary to determine which of the two Governors shall be deemed to have so raised the number of votes which the nominee
received. The Committee thinks it advisable to recommend that this
determination be made by lot.15. As regards the determination of the "lowest number of votes" in
each ballot (Annex E, para.(3) ), the Committee considers that it should be
deemed to be below the number of votes which corresponds to the number of
Directors to be elected. Thus, at the first ballot, candidates receiving
Page 6
the lowest number of votes after the ninth nominee shall not be eligible for the second ballot. Such an interpretation may also prompt the
suggestion that no candidate should be dropped' if the number of nominees remaining would be less than the number of Directors to be elected.
16. In the event of two nominees receiving each the same "lowest number of votes", the.Board of Governors - it is suggested - should decide whether both of them should be retained or dropped for the next "ballot. If it were to retain them,1 it would be acting on the assumption that nrsit.fc.ei1 of tif* tvo nominees in fact received the "lowest number of votes".
