(2022.09.17-ны өдрийн орчуулга)        Unofficial translation

LAW OF MONGOLIA

January 31, 1997                                                                                 Ulaanbaatar city

ON NON-GOVERNMENTAL ORGANIZATIONS

CHAPTER ONE
GENERAL PROVISIONS

Article 1. Purpose of this law

The purpose of this law is to regulate relations concerning the association of citizens and the establishment and activities of non-governmental organizations for the aim to implement the human rights as specified in the Constitution of Mongolia and international treaties  to which Mongolia is a party.

Article 2. Legislation on non-governmental organizations

1.  Legislation on non-governmental organizations is comprised of the Constitution of Mongolia, this law and other legislative acts enacted  in conformity with them.

/This paragraph was added by the law as of January 29, 2015/

2. If an international treaty to which Mongolia is party provides otherwise than this law, then the provisions of the international treaties shall prevail.

Article 3. Scope of this law

1. This law applies  to all non-governmental organizations except political parties, trade unions, and churches and monasteries.

2. This law applies equally to international and foreign non-governmental organizations, their branches and representative offices established and operating in the territory of Mongolia.

Article 4. Definitions of terms

The following terms used in this law shall be understood as follows:

1/ "non-governmental organization" means a non-profit organization which operates its activities based on the principle of independent from the state, and self-governing, and established voluntarily by citizens or legal entities other than the State bodies (that exercise legislative, executive and judicial powers) on the basis of their individual or social interests and opinions;

2/ "public benefit non-governmental organization" means a non-governmental organization that operates for the public benefit in the fields of culture, art, education, upbringing, science, health, sport, nature and environment, community development, human rights, protection of the interests of specific group and cast of the population, charity and other such fields;

3/ "mutual benefit non-governmental organization" means a non-governmental organization other than a public benefit non-governmental organization that operates primarily to serve to its members and protect the legitimate interests of its members.

Article 5. The right to establish and participate in non-governmental organizations

1. Mongolian citizens and legal entities other than State bodies have a right to establish, individually or collectively, non-governmental organizations on the basis of their interests and opinions without obtaining permission from any State body.

2. It is prohibited to illegally restrict the rights of citizens to establish non-governmental organizations

3. No person shall be forced to join a non-governmental organization.

4. It is prohibited to discriminate against and/or to restrict the rights and freedoms of any person for associating in non-governmental organization.

5. The activities of a non-governmental organization shall be transparent to the public, and any of its members and citizens may access the report of the organization.

6. Foreign citizens and stateless persons legally residing in the territory of Mongolia may establish and join non-governmental organizations in accordance with the procedure specified in this law, unless otherwise provided by the laws and international treaties to which Mongolia is party

Article 6. Consideration of the establishment of non-governmental organizations

A non-governmental organization shall be considered as established after the founders have issued a decision to establish the non-governmental organization and have approved the non-governmental organization's charter. The non-governmental organization shall exercise its rights as a legal entity after it is registered in the State registry.

Article 7. Dissolution of non-governmental organizations

1. A non-governmental organization may be dissolved if it has fully achieved the mission stated in its charter or on the grounds of other provisions specified in its charter. The decision to dissolve the non-governmental organization shall be issued by its governing body.

2. Upon dissolution of a non-governmental organization, any remaining assets after the settlement of debts shall be transferred to another non-governmental organization with the same or similar purpose or, if no such non-governmental organization exists, to activities consistent with the stated purpose of the non-governmental organization.

3. The governing body of the non-governmental organization shall publicly announce its decision to dissolve the non-governmental organization and notify the State administrative body in charge of state registration matters in writing within 21 days and, it shall be removed from the State registry on the basis of that decision.

/This paragraph was amended by the law as of January 29, 2015/

Article 8. Compulsory dissolution of non-governmental organizations

1. The Court shall compulsory dissolve a non-governmental organization on the following grounds:

1/ conducted activities that inconsistent with its purpose of the Charter;
2/ seriously or repeatedly violated laws.

2. Assets of a non-governmental organization compulsory dissolved by the Court's decision shall be decided in accordance with the procedures specified in paragraph 2 of Article 7 and in paragraph 3 of Article 25 of this law.

Article 9. State's communications with non-governmental organizations

1. The State shall protect the legitimate rights of non-governmental organizations.

2. The non-governmental organizations shall be independent from the State.

3. The State may support, financially and otherwise, activities of non-governmental organizations.

4. Information relating to activities of State bodies, unless it is classified as State or official secrets, shall be open to non-governmental organizations.

/This paragraph was amended by the law as of December 1, 2016/

5. The non-governmental organizations may be involved in the drafting and implementing the decisions to be taken by legislative and executive authorities based on its proposal.

6. The non-governmental organizations may make public statements about their positions on decisions taken by the State bodies.

CHAPTER TWO
GENERAL REQUIREMENTS FOR NON-GOVERNMENTAL ORGANIZATIONS

Article 10. Charter of non-governmental organizations

The Charter of a non-governmental organization shall include the followings:

1/ name and address of the non-governmental organization;
2/ date of establishment of the non-governmental organization;
3/ the purpose of the non-governmental organization;
4/ organizational structure and monitoring procedures of the non-governmental organization;
5/ powers of the Governing Board;
6/ maximum and minimum numbers of members of the Governing Board;
7/ terms of office and procedures for selection and removal of members of the Governing Board;
8/ minimum number of meetings of the Governing Board per annum;
9/ quorum necessary to consider as valid a meeting of the Governing Board;
10/ procedure for decision-making at meetings of the Governing Board;
11/ grounds and procedures for restructuring and dissolution of the non-governmental organization and in this case disposal of its assets;
12/ grounds and procedures regarding the amendment to Charter of the non-governmental organization.

Article 11. Governing body of a non-governmental organization

1. The governing body of a non-membership non-governmental organization  shall be the Governing Board. The Governing Board shall exercise the following powers:

1/ making amendments to the Charter;
2/ restructuring and dissolving the non-governmental organization;
3/ approving the non-governmental organization's annual budget;
4/ hiring and discharging the Executive Director and discussing the report;
5/ determining the authority of the Executive Director over the non-governmental organization's finances and assets;
6/ approving the organizational structure of the non-governmental organization's office and its budget;
7/ other duties specified in the Charter.

2. Unless otherwise specified in the charter of a membership non-governmental organization, the governing body shall be a Governing Board with powers specified in paragraph 1 of this article.

3. The Governing Board shall consist of an odd number of members not less than five.

4. Members of the Governing Board shall not receive any salary or other remuneration except compensation for expenses incurred in carrying out their duties as members of the Board.

Article 12. Powers and responsibilities of the Chairman of the Governing Board and the Executive Director

1. Unless otherwise specified in the Charter, the Chairman of the Governing Board shall have the right to represent the non-governmental organization abroad and domestically, and preside over meetings of the Governing Board and conclude a contract with the Executive Director based on the decision of the Governing Board.

2. The Executive Director shall exercise the following powers:

1/ to represent the non-governmental organization and manage its finances and assets within the limits of his/her powers granted by the Governing Board;
2/ other duties specified in the law and the contract.

3. The Executive Director's powers, duties and responsibilities, grounds for dismissal, salary rate and remuneration shall be regulated by the contract.

4. The Executive Director shall carry out his/her duties after expiry of the term of appointment until a new Executive Director is hired.

5. A non-governmental organization shall not be responsible for losses of or damages to individuals, business entities, and organizations caused by illegal activities of the non-governmental organization's members, members of the Governing Board and staff.

Article 13. Decision-making procedures of the Governing Board

1. All members of the Governing Board (hereinafter referred to as "members") shall have an equal right to solve any problem.

2. The Governing Board shall decide a matter on the personal data by closed voting and other matters by open voting.

/This paragraph was amended by the law as of December 17, 2021/

3. If a member has a conflict of interest in an issue to be resolved at the meeting of the Governing Board, such member shall state the conflict and refrain from voting on that issue. If the Chairman of the Governing Board's Meeting has a conflict of interest, the meeting shall be presided by another member.

Article 14. Minutes of Meetings of the Governing Board

Minutes of meetings of the Governing Board shall include the agenda, the decisions taken by the Board, the results of secret votes in figures, the results of open votes by name, explanation of any conflicts of interest and statements of members protesting decisions of the Board. Such protests shall be explained in writing by the protesting member.

CHAPTER THREE
REGISTRATION OF NON-GOVERNMENTAL ORGANIZATIONS

/This charter was annulled by the law as of May 23, 2003/

CHAPTER FOUR
NON-GOVERNMENTAL ORGANIZATION'S FINANCES

Article 19. Income of non-governmental organizations

Sources of non-governmental organization income may include the following:

1/ membership fees and contributions;
2/ contributions  by individuals, business entities and organizations;
3/ income from business activities related to the implementation of the purpose of the Charter;
4/ borrowed or inherited funds, and funds allocated from the State budget for project implementation.

Article 20. Non-governmental organization's expenses

1. The non-governmental organization shall use its income only for the activities of carrying out the objectives specified in the Charter.

2. It shall be prohibited to distribute dividends from the income of non-governmental organization, and provide asset guarantees to citizen, business entity or organization and pay their fees.

3. No member of the Governing Board or staff of a non-governmental organization shall  conduct any financial or economic activities using the organization's assets and finances for his/her personal gain.

4. Non-governmental organization shall not make any contributions to political parties and/or to coalition or to candidates in the State Great Khural's, Presidential and Citizens Representatives' Khural's elections.

Article 21. /This article was annulled by the law as of January 15, 1998/

Article 22. /This article was annulled by the law as of January 15, 1998/

CHAPTER FIVE
NON-GOVERNMENTAL ORGANIZATION'S REPORTS

Article 23. Non-governmental organization reports

1. The non-governmental organization shall file its annual financial report for the previous calendar year with the Tax Office by no later than February 15 of the following year in accordance with appropriate procedure.

2. The non-governmental organization shall file its activities report with the Ministry of Justice within a period specified in paragraph 1 of this Article and it shall be included the following matters:

/This paragraph was amended by the law as of January 29, 2015/

1/ address of the non-governmental organization;
2/ a summary of its activities;
3/ an annual balance sheet showing income and expenses in the following categories:

a/ contributions:
b/ income from business activities related to the implementation of the Charter's stated objectives;
c/ inherited property.

4/ a list of names and items of organizations and citizens who have donated or inherited assets more than 700,000 tugriks or .

5/ the names and addresses of the Chairman and members of the Governing Board and the Executive Director.

3. Whether or not a non-governmental organization shall report to a donor on the use of the donor's contribution shall be regulated by the contract signed between the non-governmental organization and the donor.

4. The non-governmental organization's activity report shall be kept by the state authority in charge of state registration and the non-governmental organization for at least 10 years.

/This paragraph was amended by the law as of January 29, 2015/

5. The non-governmental organization shall follow the procedures for record keeping and organization archives specified in the Law on Archives and Office work recording in its record keeping and archiving activities. 

/This paragraph was added by the law as of April 24, 2020/

CHAPTER SIX
LIABILITIES FOR VIOLATTORS OF THE LEGISLATION ON NON-GOVERNMENTAL ORGANIZATIONS

Article 24. Liability for violators of the law

1)     If actions of an official violating this Law are not of a criminal nature, he/she shall be subject to liability specified in the Civil Service Law.

2)     A person or legal entity that violates this Law shall be subject to liability specified in the Criminal Code or the Law on Violations.

/This Article was modified by the law as of December 4, 2015/

CHAPTER SEVEN
MISCELLANEOUS PROVISIONS

Article 25. Special regulation on Funds

1.               This law shall refer to Funds operating with functions as specified in Article 36.2 of the Civil Code, and the fund may donate to others for the following purposes:

/This paragraph was amended by the law as of July 4, 2002/

1/ support public benefit activities of a non-governmental organization;
2/ implementation of projects that meet the Fund's stated objectives by government authorities;
3/ finance individual tuition fees and other related expenses, and costs for the academic and research work carried out by individuals consistent with the Fund's stated objectives;
4/ encourage individuals to act in the public benefit.

2. The fund shall spend at least 50 percent of its annual profits on the activities specified in the charter.

3. The decision to dissolve the Fund shall be made by majority vote of all members of the Governing Board. Upon dissolution the assets of the fund shall be disbursed to another fund with the same or similar purpose or, if no such fund exists, to public benefit activities consistent with the stated purpose of the fund.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA     

R.GONCHIGDORJ