As reported by the Department of public Relations, Organization for Investment, Economic and Technical Assistance of Iran, quoting from the Government’s Official Portal, in order to enhance the presence of Iran in international and regional bodies and organizations, the bill of the Articles of Association of the International Islamic Trade Finance Corporation, affiliated to the Islamic Development Bank, was submitted by the president to the Parliament.
As reported by the Portal of the Government, the draft of the Articles of Association of the International Islamic Trade Finance Corporation, as proposed by the Ministry of Economic Affairs and Finance, was submitted by the President to the parliament for the official procedures.
Based on the explanatory preamble of the draft and regarding the importance of trade and transactions as well as commercial cooperation among the Islamic countries and concerning the role of the Islamic Development Bank in the provision of needed financing, according to the Islamic Sharia, for the strengthening of trade activities among the Islamic Countries, and with regard to the strong role and presence of Iran in making decisions and policies of the Islamic Development Bank and its associated bodies, also taking into consideration the fact that the said bank has established the International Islamic Trade Finance Corporation in order to boost trade among the Islamic countries, the draft was submitted to the parliament.
According to the report, since the procedure for the approval of the Articles of Association and becoming a member of the Corporation, imposes no financial obligation on the Government of the Islamic Republic of Iran and following the approval of the Articles of Association and becoming a member of the it, the shares which Iran has already subscribed and paid to the Export Financing Scheme (EFS) are transferred to the International Islamic Trade Finance Corporation, the draft was submitted to the Islamic Consultative Assembly.
Based on the single Article of this draft the Government is allowed to subscribe for a hundred and ninety two shares (192), with a value of one million nine hundred and twenty thousand dollars (through transferring the shares of the Islamic Republic of Iran in the “Export Financing Scheme” of the Islamic Development Bank) to join the said corporation and contribute to the future capital increases of the corporation, having obtained the approval of the Board of Ministers.
The headquarter of the corporation is in Jeddah, Saudi Arabia, and its first branch shall be in Dubai, United Arab Emirates. The location of other branches are set by the corporation as need arises.
The founder members are the Bank, as well as the institutions and member countries of the Bank as mentioned in attachment (a) of the agreement, having acquired the conditions and signed the agreement earlier or on the date mentioned in article 54 of which.
The bank and the founder members are required to first subscribe the shares, as specified in the attachment (a) of the agreement. Each member needs to subscribe a minimum of 50 shares. The shares offered for subscription in the beginning, shall be in nominal value.
The responsibility of the members, including the Bank, regarding their subscriptions, shall be limited to the value of the shares which has not been paid at the time of issuance of the shares. No shareholder, including the Bank, stand accountable against the obligations of the Corporation, due to their membership.
Annual General Assembly and how to convene meetings:
The Annual General Assembly is held annually. If the Assembly finds necessary, or because of the invitations made by the Board of Directors, may convene a meeting. The Board of Directors may convene a meeting if a third of members of the Board of directors call for it.
The corporation, assets, property, incomes, operations and transactions, as carried out according to this agreement, shall be exempt from tax. The corporation is also exempted of the responsibility to collect or pay any form of taxes or duties.