Capital Structure and Voting System of the BRICS New Development Bank (NDB)

The BRICS New Development Bank’s initial authorized capital is $100 billion, with $50 billion designated as the initial subscribed capital. According to the founding members’ agreement, $10 billion of this subscribed capital is classified as paid-in capital, which will be deposited over seven annual installments. The remaining $40 billion will be available as callable capital. Under the agreement, the initial subscribed capital must be distributed equally among the founding members.

Share Structure and Voting Rights

The bank’s total shares are based on the initial authorized capital, set at one million shares with a par value of $100,000 each. Each member country’s voting power is proportional to the percentage of subscribed shares held relative to the bank’s total shares. This shareholder structure allows founding members to have equal voting power without granting any member veto rights.

Key Provisions Regarding Voting Power

• Capital increases are allowed for all members, provided that:
  • The voting power of founding members does not fall below 55% of total votes,
  • The voting power of non-borrowing countries does not exceed 20%,
  • No non-founding member’s voting power exceeds 7%.
• If any member fails to pay its due portion of the paid-in capital, it cannot exercise the corresponding percentage of its voting power until the payment is completed.

Decision-Making Mechanism

All bank matters are decided by a simple majority vote. However, in certain cases, voting thresholds differ:

1. Qualified Majority

For issues such as establishing and operating special funds, decisions require a two-thirds majority of all votes.

2. Special Majority

For matters including:

• Admission of a new member,
• Suspension of membership,
• Capital increase,
• Expansion of the bank’s operations to non-member emerging or developing countries,

Decisions require the affirmative vote of four founding members along with a two-thirds majority of total voting power.