Countries listed under Category Two are developing member countries for the purposes of this SCHEDULE B-ELECTION OF DIRECTORS 1. Candidates for the office of Director shall be nominated by the Governors, provided that a Governor may nominate only one person. 2. The election of Directors shall be by ballot of the Governors. 3. In balloting for the Directors, every Governor shall cast for one candidate all the votes which the member represented by him is entitled to cast under Section (a) of Article 40. 4. One-fourth of the number of Directors shall be elected separately, one by each of the Governors of members having the largest number of shares. If the total number of Directors is not divisible by four, the number of Directors so elected shall be one-fourth of the next lower number that is divisible by four. 5. The remaining Directors shall be elected by the other Governors in accordance with the provision of paragraphs 6 to 11 of this Schedule. 6. If the number of candidates nominated equals the number of such remaining Directors to be elected, all the candidates shall be elected in the first ballot; except that a candidate or candidates having received less than the minimum percentage of total votes determined by the Council for such election shall not be elected if any candidate shall have received more than the maximum percentage of total votes determined by the Council. 7. If the number of candidates nominated exceeds the number of such remaining Directors to be elected, the candidates receiving the largest number of votes shall be elected with the exception of any candidate who has received less than the minimum percentage of the total votes determined by the Council. 8. If all of such remaining Directors are not elected in the first ballot, a second ballot shall be held. The candidate or candidates not elected in the first ballot shall again be eligible for election. 9. In the second ballot, voting shall be limited to (i) those Governors having voted in the first ballot for a candidate not elected and (ii) those Governors having voted in the first ballot for an elected candidate who had already received the maximum percentage of total votes determined by the Council before taking their votes into account. 10. In determining when an elected candidate has received more than the maximum percentage of the votes, the votes of the Governor casting the largest number of votes for such candidate shall be counted first, then the votes of the Governor casting the next largest number, and so on until such percentage is reached. 11. If not all the remaining Directors have been elected after the second ballot, further ballots shall be held on the same principles until all the remaining Directors are elected, provided that when only one Director remains to be elected, this Director may be elected by a simple majority of the remaining votes and shall be deemed to have been elected by all such votes. 10. Convention on the Settlement of Investment Disputes Between States and Nationals of Other States 1 Convention approved March 18, 1965, by the Executive Directors of the International Bank for Reconstruction and Development (IBRD), at Washington, for submission to member governments; 2 Open for signature at IBRD, and signed in behalf of the United States of America August 27, 1965; Ratification advised by the Senate of the United States of America May 16, 1966; Ratified by the President of the United States of America June 1, 1966; Instrument of ratification of the United States of America deposited with IBRD June 10, 1966; Proclaimed by the President of the United States of America September 30, 1966; Entered into force October 14, 1966 CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES The Contracting States PREAMBLE CONSIDERING, The need for international cooperation for economic development, and the role of private international investment therein; BEARING IN MIND, The possibility that from time to time disputes may arise in connection with such investment between Contracting States and nationals of other Contracting States; RECOGNIZING, That while such disputes would usually be subjected to national legal processes, international methods of settlement may be appropriate in certain cases; ATTACHING PARTICULAR IMPORTANCE, To the availability of facilities for international conciliation or arbitration to which Contracting States and nationals of other Contracting States may submit such disputes if they so desire; DESIRING, To establish such facilities under the auspices of the International Bank for Reconstruction and Development; 117 UST 1270; TIAS 6090; 575 UNTS 159. For a list of states which are parties to this convention, see Department of State publication, Treaties in Force. ? Partial text of Resolution 65-14, approving the submission of the Convention, reads as follows: "Now, therefore, the Executive Directors hereby resolve as follows: "(1) The text of the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States formulated by the Executive Directors in the form presented to this meeting and the report of the Executive Directors thereon are hereby approved for submission to member governments of the Bank; "(2) The President of the Bank shall transmit said report and the text of the said convention to all member governments of the Bank; "(3) The President and the General Counsel of the Bank shall sign a copy of said convention on behalf of the Bank to indicate the Bank's agreement to fulfill the functions with which it is charged under the convention; "(4) The copy of the Convention so signed on behalf of the Bank shall remain deposited in the archives of the Bank and shall be open for signature on behalf of governments in accordance with its terms." RECOGNIZING, That mutual consent by the parties to submit such disputes to conciliation or to arbitration through such facilities constitutes a binding agreement which requires in particular that due consideration be given to any recommendation or conciliators, and that any arbitral award be complied with; and DECLARING, That no Contracting State shall by the mere fact of its ratification, acceptance or approval of this Convention and without its consent be deemed to be under any obligation to submit any particular dispute to conciliation or arbitration, HAVE AGREED AS FOLLOWS: CHAPTER I-INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES SECTION 1-ESTABLISHMENT AND ORGANIZATION ARTICLE 1 (1) There is hereby established the International Centre for Settlement of Investment Disputes (hereinafter called the Centre). (2) The purpose of the Centre shall be to provide facilities for conciliation and arbitration of investment disputes between Contracting States and nationals of other Contracting States in accordance with the provisions of this Convention. ARTICLE 2 The seat of the Centre shall be at the principal office of the International Bank for Reconstruction and Development (hereinafter called the Bank). The seat may be moved to another place by decision of the Administrative Council adopted by a majority of two-thirds of its members. ARTICLE 3 The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel of Conciliators and a Panel of Arbitrators. SECTION 2-THE ADMINISTRATIVE COUNCIL ARTICLE 4 (1) The Administrative Council shall be composed of one representative of each Contracting State. An alternate may act as representative in case of his principal's absence from a meeting or inability to act. (2) In the absence of a contrary designation, each governor and alternate governor of the Bank appointed by a Contracting State shall be ex officio its representative and its alternate respectively. ARTICLE 5 The president of the Bank shall be ex officio Chairman of the Administrative Council (hereinafter called the Chairman) but shall have no vote. During his absence or inability to act and during any vacancy in the office of President of the Bank, the person for the |