FRONT MATTER.PMD - International Seabed Authority

Annex IV: arts. 9-11
163
Article 9
Reports and financial statements
1. The Enterprise shall, not later than three months after the end of each
financial year, submit to the Council for its consideration an annual report containing
an audited statement of its accounts and shall transmit to the Council at
appropriate intervals a summary statement of its financial position and a profit
and loss statement showing the results of its operations.
2. The Enterprise shall publish its annual report and such other reports as it
finds appropriate.
3. All reports and financial statements referred to in this article shall be
distributed to the members of the Authority.
Article 10
Allocation of net income
1. Subject to paragraph 3, the Enterprise shall make payments to the Authority
under Annex III, article 13, or their equivalent.
2. The Assembly shall, upon the recommendation of the Governing Board,
determine what portion of the net income of the Enterprise shall be retained as
reserves of the Enterprise. The remainder shall be transferred to the Authority.
3. During an initial period required for the Enterprise to become self-supporting,
which shall not exceed 10 years from the commencement of commercial
production by it, the Assembly shall exempt the Enterprise from the payments
referred to in paragraph 1, and shall leave all of the net income of the Enterprise in
its reserves.
Article 11
Finances
1. The funds of the Enterprise shall include:
(a) amounts received from the Authority in accordance with article 173,
paragraph 2(b);
(b) voluntary contributions made by States Parties for the purpose of financing
activities of the Enterprise;
(c) amounts borrowed by the Enterprise in accordance with paragraphs 2
and 3;
(d) income of the Enterprise from its operations;
(e)
other funds made available to the Enterprise to enable it to commence
operations as soon as possible and to carry out its functions.
2. (a) The Enterprise shall have the power to borrow funds and to furnish
such collateral or other security as it may determine. Before making
a public sale of its obligations in the financial markets or currency of a
State Party, the Enterprise shall obtain the approval of that State Party.
The total amount of borrowings shall be approved by the Council upon
the recommendation of the Governing Board.