SUBSECTION D. THE SECRETARIAT
1. The Secretariat of the Authority shall comprise a Secretary-General and
such staff as the Authority may require.
2. The Secretary-General shall be elected for four years by the Assembly
from among the candidates proposed by the Council and may be re-elected.
3. The Secretary-General shall be the chief administrative officer of the
Authority, and shall act in that capacity in all meetings of the Assembly,
of the Council and of any subsidiary organ, and shall perform such other
administrative functions as are entrusted to the Secretary-General by these
4. The Secretary-General shall make an annual report to the Assembly on the
work of the Authority.
1. The staff of the Authority shall consist of such qualified scientific
and technical and other personnel as may be required to fulfil the
administrative functions of the Authority.
The staff of the Authority
2. The paramount consideration in the recruitment and employment of the
staff and in the determination of their conditions of service shall be the
necessity of securing the highest standards of efficiency, competence and
integrity. Subject to this consideration, due regard shall be paid to the
importance of recruiting the staff on as wide a geographical basis as
3. The staff shall be appointed by the Secretary-General. The terms and
conditions on which they shall be appointed, remunerated and dismissed
shall be in accordance with the rules, regulations and procedures of the
1. In the performance of their duties the Secretary-General and the staff
shall not seek or receive instructions from any government or from any
other source external to the Authority. They shall refrain from any action
which might reflect on their position as international officials
responsible only to the Authority. Each State Party undertakes to respect
the exclusively international character of the responsibilities of the
Secretary-General and the staff and not to seek to influence them in the
discharge of their responsibilities. Any violation of responsibilities by a
staff member shall be submitted to the appropriate administrative tribunal
as provided in the rules, regulations and procedures of the Authority.
International character of the Secretariat
2. The Secretary-General and the staff shall have no financial interest in
any activity relating to exploration and exploitation in the Area. Subject
to their responsibilities to the Authority, they shall not disclose, even
after the termination of their functions, any industrial secret,
proprietary data which are transferred to the Authority in accordance with
Annex III, article 14, or any other confidential information coming to
their knowledge by reason of their employment with the Authority.
3. Violations of the obligations of a staff member of the Authority set
forth in paragraph 2 shall, on the request of a State Party affected by
such violation, or a natural or juridical person, sponsored by a State
Party as provided in article 153, paragraph 2(b), and affected by such
violation, be submitted by the Authority against the staff member concerned
to a tribunal designated by the rules, regulations and procedures of the
Authority. The Party affected shall have the right to take part in the
proceedings. If the tribunal so recommends, the Secretary-General shall
dismiss the staff member concerned.
4. The rules, regulations and procedures of the Authority shall contain
such provisions as are necessary to implement this article.
1. The Secretary-General shall, on matters within the competence of the
Authority, make suitable arrangements, with the approval of the Council,
for consultation and co-operation with international and non-governmental
organizations recognized by the Economic and Social Council of the United
Consultation and co-operation with international and
2. Any organization with which the Secretary-General has entered into an
arrangement under paragraph 1 may designate representatives to attend
meetings of the organs of the Authority as observers in accordance with the
rules of procedure of these organs. Procedures shall be established for
obtaining the views of such organizations in appropriate cases.
3. The Secretary-General may distribute to States Parties written reports
submitted by the non-governmental organizations referred to in paragraph 1
on subjects in which they have special competence and which are related to
the work of the Authority.
SUBSECTION E. THE ENTERPRISE
1. The Enterprise shall be the organ of the Authority which shall carry out
activities in the Area directly, pursuant to article 153, paragraph 2(a),
as well as the transporting, processing and marketing of minerals recovered
from the Area.
2. The Enterprise shall, within the framework of the international legal
personality of the Authority, have such legal capacity as is provided for
in the Statute set forth in Annex IV. The Enterprise shall act in
accordance with this Convention and the rules, regulations and procedures
of the Authority, as well as the general policies established by the
Assembly, and shall be subject to the directives and control of the
3. The Enterprise shall have its principal place of business at the seat of
4. The Enterprise shall, in accordance with article 173, paragraph 2, and
Annex IV, article 11, be provided with such funds as it may require to
carry out its functions, and shall receive technology as provided in
article 144 and other relevant provisions of this Convention.
SUBSECTION F. FINANCIAL ARRANGEMENTS
OF THE AUTHORITY
The funds of the Authority shall include:
Funds of the Authority
- assessed contributions made by members of the Authority in accordance
with article 160, paragraph 2(e);
- funds received by the Authority pursuant to Annex III, article 13, in
connection with activities in the Area;
- funds transferred from the Enterprise in accordance with Annex IV,
- funds borrowed pursuant to article 174;
- voluntary contributions made by members or other entities; and
- payments to a compensation fund, in accordance with article 151,
paragraph 10, whose sources are to be recommended by the Economic
The Secretary-General shall draft the proposed annual budget of the
Authority and submit it to the Council. The Council shall consider the
proposed annual budget and submit it to the Assembly, together with any
recommendations thereon. The Assembly shall consider and approve the
proposed annual budget in accordance with article 160, paragraph 2(h).
Annual budget of the Authority
1. The contributions referred to in article 171, subparagraph (a), shall be
paid into a special account to meet the administrative expenses of the
Authority until the Authority has sufficient funds from other sources to
meet those expenses.
Expenses of the Authority
2. The administrative expenses of the Authority shall be a first call upon
the funds of the Authority. Except for the assessed contributions referred
to in article 171, subparagraph (a), the funds which remain after payment
of administrative expenses may, inter alia:
- be shared in accordance with article 140 and article 160, paragraph
- be used to provide the Enterprise with funds in accordance with
article 170, paragraph 4;
- be used to compensate developing States in accordance with article
151, paragraph 10, and article 160, paragraph 2(1).
1. The Authority shall have the power to borrow funds.
Borrowing power of the Authority
2. The Assembly shall prescribe the limits on the borrowing power of the
Authority in the financial regulations adopted pursuant to article 160,
3. The Council shall exercise the borrowing power of the Authority.
4. States Parties shall not be liable for the debts of the Authority.
The records, books and accounts of the Authority, including its annual
financial statements, shall be audited annually by an independent auditor
appointed by the Assembly.
Convention on the Law of the Sea: Index