10
4.
The Management Board shall establish the plan of retrocessions taking
into account the priorities referred to in paragraph 2 of this article, and the volume of business ceded to the Corporation and after assessing the companies of
the region of the Economic and Social Commission for Asia and the Pacific which
are able and willing to accept retrocessions. The Council may revise the priori-
ties on retrocessions for important technical and financial reasons.
Article XVIII : Reinsurance Pools
1.
The Corporation may create, operate and manage reinsurance pools for
all or some classes of business.
Article XIX : Finance
1.
Each financial year of the Corporation shall begin on 1 January and
end on 31 December of the same year. However, the first financial year shall
be determined by the Council in the light of the date on which the Corporation's
operations commence.
2.
The accounts and records of the Corporation shall be maintained in
United States dollars in conformity with the procedures adopted by the
Council in consultation with the External Auditors.
3.
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At the end of each financial year the Management Board shall evaluate
the assets of the Corporation at cost, market or realizable value whichever
shall be least and shall make provisions, inter alia, for unexpired
premium and outstanding loss reserves, for all other liabilities of the
Corporation, for bad debts and other contingencies and for depreciation
on fixed assets.
Article XX : Dividends and Reserves
1.
No dividend shall be paid for the first three financial years of
operations of the Corporation. All profits realized during this period shall
be transferred to the Statutory Reserves.
2.
For subsequent financial years, one tenth of the annual net profit
shall be transferred to the Statutory Reserves until such fund shall amount
to 100 per cent of the Stock Capital of the Corporation. The Council may decide to continue such transfers to the Statutory Reserves beyond that