International Finance Corporation Act, 1958

• Jurisdiction: Ireland
• Citation: IR No. 22/1958

Number 22 of 1958.
INTERNATIONAL FINANCE CORPORATION ACT, 1958.
ARRANGEMENT OF SECTIONS
Section 1. Interpretation. 2. Approval of terms of the Agreement. 3. Financial and other provisions. 4. Short title.
SCHEDULE.
Articles of Agreement of the International Finance Corporation
Number 22 of 1958.
INTERNATIONAL FINANCE CORPORATION ACT, 1958.
AN ACT TO APPROVE OF THE TERMS OF THE AGREEMENT FOR THE INTERNATIONAL FINANCE CORPORATION AND TO PROVIDE FOR MATTERS (INCLUDING PAYMENTS) RELATED TO THAT AGREEMENT. [23rd July, 1958.]
BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—
	Interpretation.	1.—In this Act—
	“the Agreement” means the agreement, for the establishment and operation of an international body to be called the International Finance Corporation, of which the text of the Articles is set out in the Schedule to this Act;
	“the Corporation” means the International Finance Corporation established under the Agreement.
	Approval of terms of the Agreement.	2.—The terms of the Agreement are hereby approved.
	Financial and other provisions.	3.—(1) The subsequent subsections of this section shall come into operation on the day on which the Agreement is signed on behalf of the Government.
	(2) The following payments, as and when they become appropriate to be made on behalf of the Government, shall be made out of the Central Fund or the growing produce thereof:
	(a) payments in respect of subscription to the Corporation,
	(b) payments under subparagraph (iii) of paragraph (c) of Section 4 of Article V of the Agreement.
	(3) The Minister for Finance may borrow from any person, and the Bank of Ireland may advance to him, any sum or sums required for payments under this section and, for the purpose of such borrowing, he may create and issue any securities bearing such rate of interest and subject to such conditions as to repayment, redemption or otherwise as he thinks fit.
	(4) The principal and interest of any securities issued under subsection (3) of this section and the expenses incurred in connection with their issue shall be charged on the Central Fund or the growing produce thereof.
	(5) Any moneys received by the Government from the Corporation or raised by securities under subsection (3) of this section shall be placed to the credit of the account of the Exchequer and shall form part of the Central Fund and be available in any manner in which that Fund is available.
	(6) The Central Bank of Ireland shall act as a depository for the holdings of currency of the State and other assets of the Corporation and may advance to the Minister for Finance any sum or sums required for payments under this section.
	(7) The provisions of Sections 2, 3, 4, 5, 6, 7, 8, 9 and 11 of Article VI of the Agreement shall have the force of law in the State, subject to the proviso that nothing in the said Section 9 shall be construed—
	(i) as entitling the Corporation to import goods, free of customs duty, without any restriction on their subsequent sale in the country to which they were imported,
	(ii) as conferring on the Corporation any exemption from duties or taxes which form part of the price of goods sold, or
	(iii) as conferring on the Corporation any exemption from duties or taxes which are in fact no more than charges for services rendered.
	Short title.	4.—This Act may be cited as the International Finance Corporation Act, 1958.
SCHEDULE. ARTICLES OF AGREEMENT OF THE INTERNATIONAL FINANCE CORPORATION.
Section 1.
The Governments on whose behalf this Agreement is signed agree as follows:
Introductory Article
The International Finance Corporation (hereinafter called the Corporation) is established and shall operate in accordance with the following provisions:
Article I. Purpose.
The purpose of the Corporation is to further economic development by encouraging the growth of productive private enterprise in member countries, particularly in the less developed areas, thus supplementing the activities of the International Bank for Reconstruction and Development (hereinafter called the Bank). In carrying out this purpose, the Corporation shall:
(i) in association with private investors, assist in financing the establishment, improvement and expansion of productive private enterprises which would contribute to the development of its member countries by making investments, without guarantee of repayment by the member government concerned, in cases where sufficient private capital is not available on reasonable terms;
(ii) seek to bring together investment opportunities, domestic and foreign private capital, and experienced management; and
(iii) seek to stimulate, and to help create conditions conducive to, the flow of private capital, domestic and foreign, into productive investment in member countries.
The Corporation shall be guided in all its decisions by the provisions of this Article.
Article II. Membership and Capital.
Section 1.
Membership.
(a) The original members of the Corporation shall be those members of the Bank listed in Schedule A hereto which shall, on or before the date specified in Article IX, Section 2 (c), accept membership in the Corporation.
(b) Membership shall be open to other members of the Bank at such times and in accordance with such terms as may be prescribed by the Corporation.
Section 2.
Capital Stock.
(a) The authorised capital stock of the Corporation shall be $100,000,000, in terms of United States dollars.
(b) The authorised capital stock shall be divided into 100,000 shares having a par value of one thousand United States dollars each. Any such shares not initially subscribed by original members shall be available for subsequent subscription in accordance with Section 3 (d) of this Article.
(c) The amount of capital stock at any time authorised may be increased by the Board of Governors as follows:
(i) by a majority of the votes cast, in case such increase is necesary for the purpose of issuing shares of capital stock on initial subscription by members other than original members, provided that the aggregate of any increases authorised pursuant to this subparagraph shall not exceed 10,000 shares;
(ii) in any other case, by a three-fourths majority of the total voting power.
(d) In case of an increase authorised pursuant to paragraph (c) (ii) above, each member shall have a reasonable opportunity to subscribe, under such conditions as the Corporation shall decide, to a proportion of the increase of stock equivalent to the proportion which its stock theretofore subscribed bears to the total capital stock of the Corporation, but no member shall be obligated to subscribe to any part of the increased capital.
(e) Issuance of shares of stock, other than those subscribed either on initial subscription or pursuant to paragraph (d) above, shall require a three-fourths majority of the total voting power.
(f) Shares of stock of the Corporation shall be available for subscription only by, and shall be issued only to, members.
Section 3.
Subscriptions.
(a) Each original member shall subscribe to the number of shares of stock set forth opposite its name in Schedule A. The number of shares of stock to be subscribed by other members shall be determined by the Corporation.
(b) Shares of stock initially subscribed by original members shall be issued at par.
(c) The initial subscription of each original member shall be payable in full within 30 days after either the date on which the Corporation shall begin operations pursuant to Article IX, Section 3 (b), or the date on which such original member becomes a member, whichever shall be later, or at such date thereafter as the Corporation shall determine. Payment shall be made in gold or United States dollars in response to a call by the Corporation which shall specify the place or places of payment.
(d) The price and other terms of subscription of shares of stock to be subscribed, otherwise than on initial subscription by original members, shall be determined by the Corporation.
Section 4.
Limitation on Liability.
No member shall be liable, by reason of its membership, for obligations of the Corporation.
Section 5.
Restriction on Transfers and Pledges of Shares.
Shares of stock shall not be pledged or encumbered in any manner whatever, and shall be transferable only to the Corporation.
Article III. Operations.
Section 1.
Financing Operations.
The Corporation may make investments of its funds in productive private enterprises in the territories of its members. The existence of a government or other public interest in such an enterprise shall not necessarily preclude the Corporation from making an investment therein.
Section 2.
Forms of Financing.
(a) The Corporation's financing shall not take the form of investments in capital stock. Subject to the foregoing, the Corporation may make investments of its funds in such form or forms as it may deem appropriate in the circumstances, including (but without limitation) investments according to the holder thereof the right to participate in earnings and the right to subscribe to, or to convert the investment into, capital stock.
(b) The Corporation shall not itself exercise any right to subscribe to, or to convert any investment into, capital stock.
Section 3.
Operational Principles.
The operations of the Corporation shall be conducted in accordance with the following principles:
(i) the Corporation shall not undertake any financing for which in its opinion sufficient private capital could be obtained on reasonable terms;
(ii) the Corporation shall not finance an enterprise in the territories of any member if the member objects to such financing;
(iii) the Corporation shall impose no conditions that the proceeds of any financing by it shall be spent in the territories of any particular...