22 International Financial Managemen There are ad hoc and standing committees appointed by the Board Governors and Executive Board. There is also an interim committe appointed by the Board of Governors. The apex body of IMF is the Board of Governors, Itis comprised one Goverior and/one alternate Governor appointed by each meme: country. Normally the minister of finance or the governor of cent bank of a country acts as its Governor at the IMF. The alterna Governor can participate in the deliberations -of the Board Governors but he ean have the voting right only in the absence of Governor. ‘The meeting of the Board of Governors takes place once a yea which the detailed account of the activities of the Fund in the previow Year is presented. The decisions regarding the policies of the Fund are also taken at the annual meeting. Special meeting of the Board » Sevemors can be convened by any ofthe five member countries having 25.percent or more of the total voting rights, Apart from the Board of Governors, another decision making organ of the IMF has been the Executive Board. In practice, the inaicrity of the decision-making powers of the Board of Governors have been delegated to the Board of Executive Directors. ‘These inclu decisions on the access of the members to the resources of the Fund decisions, on charges. and. remunerations and the review “i consultations between the Fund and its members. The decisions o Board of Governors or the Executive Board are binding upon the member countries ‘The Executive: Board is constituted by 21 members. Fiv executive directors are the appointees of the five members eountri, having the largest quotas (U.S.A., U.K, Germany, France and Japan) Saudi Arabia, appoints a sixth Executive Director'on account of ite being ane ofthe two largest contributors to the Fund. Tho remaining executive directors are elected by the momber countries for a period of vo years roughly on a geographical basis. The Board of Executive Directors elects a Managing Director, who is usually a politician or an important international official. Managing Director is the non-voting Chairman of the Board of Executive Directors, The Executive Board is the mest powerful organ of the Fund. It exercises vast powers conferved on it by the Articles of Agreement and the powers delegated to it by the Board of Governors. These powers are connected with ail the financial activities of the Fund apart from the regulatory and Supervisory powers. The Executive Board meets several times a week and is, therefore, supposed to be in continuous session ‘The Managing Director apart from acting as the chairman of the Executive Board is responsible also for the organisation and administration of the personnel of the Fund. (Financial Management ecision making; body appoint ibeen the Interim Committee whict Fhe Second Amendment to the Ar Seastitution of a council “by a decis ea with an 85 percent majority of th Be states of the Fund.” 'Quotas g the member of the IMF, a cot iption, its voting power and its « Glause that the subscription quota B= @) 2 percent of national income, ies (iit) 10 percent of average ant ym variation in annual exports a Ge) increased by the percentage ratia national income, The subscription ¢ ‘of that amount of subseription m iBhe form of gold or the U.S, dollars ( andU.S. do!lars with the country, the remaining amount is payable in te ithe country concerned. The subseripti He quota constitutes the so-called ‘go quota composed of national currenci he so-called ‘credit tranche. Thesubsei Geuntries taken together determine # SF the Fund. The total subseription FES billion. By 1993, it had grown to$ @) The Fund was delinked from gold in Eeeping gold reserves with the Fund @ member country maintains the sub fewn currency and in terms of Speci quotas of the member countries are re ily the U.S. quota was the largest ¢ Fespective quotas of the five leading ntly at 21 percent for the U.S.A., at 7p for Germany and at 5 percent each for jerof the member states and their be fspon the quotas allocated to them, + The major functions of the IMF Fund operates a5 a short-torm credit ets as a reservoir of the currencies A borrowing country can borrow the ¢ of this reservoir. {The IMF is like a lending institution in f Tens in forcign oxchange to the met