Consider the following statements with respect to New Development Bank (NDB):
1. All members of the United Nations could be members of the bank.
2. The share of the founding nations can never be less than 55% of the voting power.
3. The voting power of each founding member shall equal their subscribed shares in the capital stock of the Bank.
Which of the statements given above are correct ?
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 3
Explanation Statement 1 is correct: The founding members of the NDB are Brazil, Russia, India, China and South Africa. The membership is open to all members of the United Nations, in accordance with the provisions of the Articles of Agreement of the New Development Bank. It shall be open to borrowing and non-borrowing members.
Statement 2 is correct: The Bank's Agreement specifies that all members of the United Nations could be members of the bank, however the share of the BRICS nations can never be less than 55% of voting power.
Statement 3 is correct: The initial subscribed capital of the Bank shall be fifty billion dollars which shall be divided into paid-in shares and callable shares and equally distributed amongst the founding members, (i.e., each member will have $10 billion of subscribed capital). The voting power of each (five) member shall equal its subscribed shares in the capital stock of the Bank (each share value is equal to $ 1,00,000).
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