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Law on Non-Governmental Organizations

1: WEBTEXT/57969/65207/E97MNG01

Mon golia
LAW OF MONGOLIA ON NON-GOVERNMENTAL ORGANIZATIONS, 1997
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Purpose of this law
The purpose of this la w is to regulate relations concerning the association of citiz ens 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 in
international treaties to which Mongolia is a part y.
Article 2. Legislation on non-governmental organizations
1. Legislation on non-go vernmental organizations is comprised of the Constitution, this la w and other legislative acts issued in
conformity with them.
2. If an international treat y to which Mongolia is a part y is inconsistent with this law, then the pro visions of the international
treaty shall prevail.
Article 3. Framework of this law
1. This la w is applicable to all non-go vernmental organizations ex cept political parties, trade unions, and churches and
monasteries.
2. This la w is applicable to international and foreign non-go vernmental organizations, their br anches and representativ e offices
established and operating in the territory of Mongolia.
Article 4. Definitions
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In this law the following terms shall ha ve the following meaning:
1) “non-go vernmental organization” means an organization which is independent from the state, self -governing, not –
for-profit and established v oluntarily by citizens or b y legal persons other than State bodies (that ex ercise legislativ e,
executiv e and judicial powers) on the basis of their individual or social interests and opinions;
2) “public benefit non-go vernmental organization” means a non-go vernmental organization that oper ates for the
public benefit in the fields of culture, art, education, science, health, sport, nature and en vironment, community
development, human rights, protection of the interests of specific subsets of the population, charit y and other such
fields;
3) “mutual benefit non-governmental organization” means a non-go vernmental organization other than a public
benefit non-go vernmental organization that oper ates primarily to serve the legitimate interests of its members.
Article 5. The rights of individuals to establish and participate in non-governmental organizations
1. Citizens of Mongolia and legal persons ex cept State bodies may freely establish, individually or collectiv ely, non-
governmental organizations on the basis of their interests and opinions without the permission of an y State body.
2. Illegal restriction of the rights of citiz ens to establish non-governmental organizations is prohibited.
3. No person shall be forced to join a non-go vernmental organization.
4. Discrimination against and/or restriction of the rights and freedom of an y person on the grounds on his/her association with
a non-governmental organization is prohibited.
5. A non-go vernmental organization’s activities and reports shall be public information and open to its members and to
citiz ens.
6. Foreign citiz ens and stateless persons legitimately residing in Mongolia ma y establish and join non-governmental
organizations in accordance with the procedure specified in this la w if other laws and international treaties of Mongolia do not
provide otherwise.
Article 6. Establishment of non-governmental organizations
A non-go vernmental organization shall be considered established after the founders ha ve issued a decision to establish the
non-go vernmental organization and ha ve appro ved the non-go vernmental organization’s b y-la ws. The non-go vernmental
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organization shall exercise its rights as a legal person after it is registered in the State registry .
Article 7. Dissolution of non-governmental organizations
1. A non-governmental organization can be dissolv ed if it has fully achieved the mission stated in its b y-la ws or on the grounds
of other pro visions specified in its b y-la ws. The decision to dissolv e the non-governmental organization shall be issued b y its
governing body .
2. Upon dissolution of a non-governmental organization, an y remaining assets after the settlement of debts shall be
transferred to another non-go vernmental organization with the same or similar purpose or , if no such non-governmental
organization exists, to public benefit activities consistent with the stated purpose of the non-go vernmental organization.
3. The go verning body of the non-go vernmental organization shall publicly announce its decision to dissolv e the non-
governmental organization and notif y the Ministry of Justice in writing within 21 da ys and, on the basis of that decision, the
non-governmental organization shall be remo ved from the State registry .
Article 8. Compulsory dissolution of non-governmental organizations
1. The Court shall compulsory dissolv e a non-governmental organization on the following grounds:
1) the non-go vernmental organization has conducted activities inconsistent with its mission;
2) the non-go vernmental organization has repeatedly violated la ws and/or conducted activities of a sev ere nature.
2. Assets of a non-governmental organization compulsory dissolv ed by the Court’s decision shall be liquidated in accordance
with the procedures specified in paragraph 2 of article 7 and in par agraph 3 of article 25 of this law.
Article 9. Relations between State bodies and non-governmental organizations
1. The State shall protect the legitimate rights of non-go vernmental organizations.
2. Non-go vernmental organizations shall be independent of State bodies.
3. The State ma y support, financially and otherwise, activities of non-go vernmental organizations.
4. Information relating to activities of State bodies, unless it is classified as State secret, shall be open to non- go vernmental
organizations.
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5. Non-governmental organizations ma y be involv ed in dr afting and implementing the decisions to be tak en by legislativ e and
executiv e authorities.
6. Non-go vernmental organizations ma y make public statements about their positions on decisions tak en by the State.

CHAPTER TWO
GENERAL REQUIREMENTS FOR NON-GOVERNMENTAL ORGANIZATIONS
Article 10. By-laws of non-governmental organizations
The b y-la ws of a non-go vernmental organization shall include the following:
1) name and address of the non-go vernmental organization;
2) date of creation of the non-go vernmental organization;
3) statement of purpose of the non-go vernmental organization;
4) organizational structure and monitoring procedures of the non-go vernmental organization;
5) powers of the Go verning Board;
6) maximum and minimum numbers of members of the Go verning Board;
7) terms of office and procedures for selection and remo val of members of the Go verning Board;
8) minimum number of meetings of the Go verning Board per annum;
9) quorum necessary to hold a meeting of the Go verning Board;
10) procedure for decision-making at meetings of the Go verning Board;
11) grounds and procedures for restructuring and dissolution of the non-go vernmental organization and liquidation of
its assets;
12) grounds and procedures regarding the amendment to the non-go vernmental organization b y-la ws.
Article 11. Governing body of a non-governmental organization
1. The go verning body of a non-membership non-go vernmental organization shall be the Go verning Board. The Go verning
Board shall ha ve the following powers:
1) making amendments to b y-la ws;
2) restructuring and dissolving the non-go vernmental organization;
3) appro ving the non-go vernmental organization’s annual budget;
4) hiring and discharging the Ex ecutive Director and discussing the report;
5) defining the authorit y of the Executiv e Director o ver the non-go vernmental organization’s finances and assets;
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6) approving the staffing structure and the budget of the non-governmental organization;
7) other duties specified in the b y-la ws.
2. The go verning body of a membership non-go vernmental organization shall be a Go verning Board as specified in par agraph 1
of this article if the non-go vernmental organization’s b y-la ws do not pro vide otherwise.
3. The Governing Board shall consist of an odd number of members not less than fiv e.
4. Members of the Go verning Board shall not receiv e any salary or other remuner ation except compensation for expenses
incurred in carrying out their duties as members of the Board.
Article 12. Rights and responsibilities of the Chairperson of the Governing Board and the Executive Director
1. If the b y-la ws do not pro vide otherwise, the Chairperson of the Go verning Board shall ha ve the right to represent the non-
go vernmental organization inside and outside the country , preside over meetings of the Go verning Board and conclude a
contr act with the Ex ecutive Director based on the decision of the Go verning Board.
2. The Ex ecutive Director shall ha ve the following authorities:
1) to represent the non-go vernmental organization and manage its finances and assets within the limits of his/her
powers defined b y the Governing Board;
2) other duties specified in the la w and the contract.
3. The Ex ecutive Director’s powers, duties and responsibilities, grounds for dismissal, salary r ate and remuner ation shall be
regulated by the contract.
4. The Executiv e Director shall carry out his/her duties after expiry of the term of appointment until a new Ex ecutive Director
is hired.
5. A non-go vernmental organization shall not be responsible for losses of or damages to individuals and business entities
caused b y illegal activities of the non-go vernmental organization’s members, members of the Go verning 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 ha ve an equal v ote.
2. Votes shall be secret on personnel matters and open in all other cases.
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3. If an issue examined by the Governing Board results in a conflict of interest for an y member present at the meeting, such
member shall state the conflict and refrain from v oting on that issue. If the conflict of interest in volv es the Chairperson of the
Governing Board, another member shall guide the meeting.
Article 14. Minutes of Meetings of the Governing Board
Minutes of meetings of the Go verning Board shall include the agenda, the decisions tak en by the Board, the results of secret
votes in figures, the results of open votes b y name, announcement of an y conflicts of interest and statements of members
protestingdecisions of the Board. Such protests shall be explained in writing by the protesting member .

CHAPTER THREE
REGISTRATION OF NON-GOVERNMENTAL ORGANIZATIONS
Article 15. Registration of non-governmental organizations
Non-governmental organizations shall be registered with the Ministry of Justice in accordance with the procedure specified in
this la w.
Article 16. Registration process of non-governmental organizations
1. The Chairperson of the Go verning Board shall submit an application to be registered to the Ministry of Justice along with
documents specified in par agraph 2 of this Article.
2. The following documents shall be enclosed in the application:
1) name and address of the non-go vernmental organization;
2) names and addresses of the members of the Go verning Board, the Chairperson and the Ex ecutive Director;
3) by-la ws of the non-go vernmental organization certified and signed b y the Chairperson of the Go verning Board;
4) receipt of the pa yment for the state stamp dut y fee.
3. The non-governmental organization’s application to be registered and other related documents shall be submitted, directly
or via local authorit y, to the Ministry of Justice.
4. The authorit y that first receiv es the non-governmental organization’s application and related documents to be registered
shall officially inform the non-go vernmental organization of the date on which the documents were receiv ed.
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5. If the application to be registered and other documents are incomplete or do not meet the requirements specified in Article
10 of this law and in par agraph 2 of this Article, the authorit y that first receives the above documents shall return them to the
non-go vernmental organization.
6. Within 30 da ys of receipt of adequate documents the Ministry of Justice shall mak e either one of the following decisions:
1) register the non-governmental organization in the State registry;
2) refuse registr ation on the following grounds:
a) the purpose of the non-go vernmental organization violates the la ws of Mongolia;
b) another non-governmental organization is already registered with the same name.
7. The Ministry of Justice shall register the non-go vernmental organization and pro vide it with a registration certificate. The
design of the certificate of registration and the issuance procedures shall be appro ved b y the Minister of Justice.
8. If registr ation is refused, the Ministry of Justice shall officially notif y the non-governmental organization of the grounds for
refusal in the State registry . If the non-go vernmental organization does not agree with the decision it ma y file suit in court.
9. The non-governmental organization ma y again apply for registration after taking corrective action on the grounds for
refusal.
10. If no official response from the Ministry of Justice is receiv ed by the non-go vernmental organization regarding its
registr ation in the State registry within the time specified in par agraph 6 of this article, the non-go vernmental organization
shall be considered to be legally registered and entitled to oper ate. The non-go vernmental organization shall be issued a
certificate of registr ation according to the relev ant procedures.
11. The Ministry of Justice shall publicly announce the registr ation in the State registry of the non-governmental organization.
Article 17. Registration of amendments to the By-laws
1. The non-go vernmental organization shall notif y the Ministry of Justice of any amendments to the by-la ws within 30 da ys of
those amendments.
2. The Ministry of Justice shall officially notif y the non-governmental organization of the registr ation of the amendments or , if
registration is refused, of the grounds for refusal within 30 da ys.
Article 18. Removal from State registry
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1. The Ministry of Justice shall remove from State registry a non-go vernmental organization on the following grounds and
inform the public about the decision:
1) court decision on compulsory dissolution of the non-go vernmental organization enters into force;
2) the non-go vernmental organization fails to file its activities report after receiving a written notice.
2. Once the non-go vernmental organization has corrected a violation specified in sub-par agraph 2 in par agraph 1 of
this Article, it ma y register in the State registry again following this la w.

CHAPTER FOUR
NON-GOVERNMENTAL ORGANIZATION FINANCES
Article 19. Income of non-governmental organizations
Sources of non-go vernmental organization income ma y include the following:
1) membership fees and contributions;
2) contributions by individuals, business entities and organizations;
3) income generated by mission-related economic activities;
4) borrowed or inherited funds, and funds allocated from the State budget for project implementation.
Article 20. Non-governmental organization expenses
1. Non-go vernmental organization shall use all income for the attainment of their stated purposes.
2. Non-go vernmental organization shall not distribute income in the form of dividends. Non-go vernmental organization shall
not act as financial guar antors or participate in amelioration of any business of an y business losses on behalf of any person,
business entit y or other organization.
3. No member of the Governing Board or staff of a non-go vernmental organization shall conduct an y financial or economic
activities using the organization’s assets and finances for his/her personal gain.
4. Non-go vernmental organization shall not mak e any contributions to political parties and/or to coalition or to candidates in
the State Ih Hur al, Presidential and Citizen R epresentativ es’ Hural elections.
Article 21. Benefits for non-governmental organization
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1. Income from membership fees, contributions, inheritance and mission-related economic activities of public benefit,
registered non-governmental organization shall be tax ex empt.
2. Income from membership fees and members’ contributions to mutual benefit, registered non-governmental organization
shall be tax ex empt.
3. Other benefits for registered non-go vernmental organization shall be regulated b y relevant la ws and regulations.
Article 22. Tax deductions for contributors
A Contributor to a public benefit registered non-go vernmental organization ma y deduct the amount of the contribution from
annual income subject to taxation at the current market price rate. A Contributor of an inheritance to a public benefit,
registered non-go vernmental organization shall be ex empt from inheritance tax.

CHAPTER FIVE
NON-GOVERNMENTAL ORGANIZATION REPORTS
Article 23. Non-governmental organization reports
1. The non-governmental organization shall file an annual financial report for the previous calendar y ear with the Tax Office by
no later than F ebruary 15 of the following y ear, following relev ant regulations.
2. The non-governmental organization shall file an activities report with the Ministry of Justice before the deadline specified in
par agraph 1 of this Article and the report should include the following:
1) the non-go vernmental organization’s address;
2) a summary of its activities;
3) a balance sheet showing income and expenses for the year b y the following categories:
a) contributions:
b) income from mission-related economic activities;
c) inheritance.
4) a list of donors with cumulativ e donations, cash or in-kind, greater than 700,000 togrogs, and the specific amount
or value of in-kind contributions.
5) names and addresses of the Chairperson and members of the Go verning Board and the Ex ecutive Director .
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3. Whether or not a non-governmental organization shall report to a donor on the use of the donor’s contribution will be
regulated b y the contract signed between the non-governmental organization and the donor .
4. The Ministry of Justice and the non-governmental organization shall k eep the non-governmental organization’s activities
report for at least 10 years.
CHAPTER SIX
LIABILITIES FOR VIOLATION OF THIS LAW
Article 24. Administrative sanctions
If a breach of the legislation on non-go vernmental organizations is held not to constitute a criminal offense, the court
depending from the nature of a breach shall impose the following penalties on an offending person:
1) in cases of illegal distribution of income in the form of dividends or pa yment on behalf of any person, business
entity or organization acting as financial guar antor, a fine of 40,000-60,000 togrogs shall be imposed on the guilt y
executiv e, and a fine of 100,000-150,000 togrogs shall be imposed on the organization;
2) if a member of the Governing Board or staff of a non-go vernmental organization conducts an y financial or
economic activities using the organization’s assets and finances for his/her personal gain, a fine of 40,000-60,000
togrogs shall be imposed on the guilty executiv e and the earned income shall be confiscated;
3) if non-go vernmental organization mak e contributions to political parties, part y coalitions or candidates in the
State Ih Hural, Presidential and Citiz en Representativ es’ Hurals elections, a fine of 50,000-60,000 togrogs shall be
imposed on the guilt y executiv e, and a fine of 200,000-250,000 togrogs shall be imposed on the organization;
4) if a non-go vernmental organization fails to file its annual report with the relev ant authorities within the time
specified in this law a fine of 10,000-20,000 togrogs shall be imposed on the guilt y executiv e.
CHAPTER SEVEN
MISCELLANEOUS PROVISIONS
Article 25. Special provisions related to Foundations
1. This la w shall refer to F oundations oper ating in the fields specified in par agraph 3 of Article 36 of the Civil La w. Such
Foundations ma y only donate funds to:
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1) support public benefit activities of a non-governmental organization;
2) support go vernment activities consistent with the F oundation’s stated objective;
3) finance tuition fees, research and related costs for the education of an individual consistent with the F oundation’s
stated objectives;
4) encour age individuals to act in the public benefit.
2. Each year a Foundation must disburse at least 50 percent of the interest earnings of its funds for its stated objectiv es.
3. The Foundation may be dissolv ed only by majority vote of all members of the Go verning Board. Upon dissolution the funds
of the foundation shall be disbursed to another foundation with the same or similar purpose or , if no such foundation exists, to
public benefit activities consistent with the stated purpose of the foundation.
February 6, 1997
Ulaanbaatar city
LAW OF MONGOLIA ON THE IMPLEMENTATION REGULATIONS
OF THE LAW ON NON-GOVERNMENTAL ORGANIZATIONS
Article 1.
The non-governmental organizations that ha ve been registered in the State registry before this la w enters into force shall
register on the renewed registry no later than January 13, 1998, following procedures specified in this la w.
Article 2.
The non-go vernmental organizations specified in Article 1 of this la w shall be removed from the State registry b y the Ministry
of Justice if they do not re-register within the period of time specified in Article 1 of this la w.
Article 3.
The non-go vernmental organizations specified in Article 1 of this la w shall be exempt from state stamp dut y fee when
registering on the renewed State registry of a non-governmental organization.
Article 4.
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This law shall enter into force on the da y the Law on Non-Go vernmental Organizations enters into force.
Chairman of the State Ih Hural of Mongolia R.
Gonchigdorj
International Labour Organization
NA TLEX database
Disclaimer
infonorm@ilo.org
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