Legal knowledge

   According to the Article 83.6 of the Company Law of Mongolia, The executive body shall act within the scope of authority set forth in the Contract entered into with the Board of Directors (in its absence, a shareholders meeting). 

 

   Following matters shall be included in the Contract: 

• The purpose, goal and expected result of the Executive body;

• Rights and duties of the Executive body;

• Responsibilities of the Executive body;

• Contract period;

• Salary and commission of the Executive body;

• Schedule for reports, information and data of activities which will be executed by the Executive body;

• Grounds and procedures to suspend and revoke powers of the Executive body;

• Conclude a work executed by the Executive body;

• Grounds of termination of contract etc;

 

   If there will be irrelevant matter that our of power of the Executive body such as concluding transactions, entering into agreements, carrying activities, it should be discussed with the Board of Directors (in its absence, a shareholders meeting) and stated in the Company’s Charter to getting on approval. It shall be appropriated to limit the amount of the company's equity to not less than 5 percent of its capital that the Executive body of the company may decide independently and it is stated in the principles and recommendations in the Executive Body chapter of the Corporate Governance Code codified by the Financial Regulatory Committee. 

 

Source: The Company Law of Mongolia