Archive for March, 2010
Corporate Governance in Mongolia
Compliance with the Company Law is Mongolia is still a relatively rare thing. Most companies are not publicly listed and are owned by single shareholders so therefore do not feel the need to follow the Company Law.
Under the Company Law of Mongolia there are a number of decisions which must be approved by a shareholder’s meeting held at least once a year, including the appointment of members of a board of directors, approving annual reports, and the reorganization or liquidation of the company, amongst other matters.
While these aspects of the Company Law may not be strictly enforced in Mongolia yet, they nevertheless remain important features of properly maintaining a company. Read the rest of this entry »
Foreign Workers Quotas: Limiting Expats in Mongolia
The Government of Mongolia imposes foreign worker quotas on businesses operating in Mongolia, both foreign-invested and Mongolian-owned companies. The quota ranges from 5% to 80%, depending on the sector, the amount of investment and the total number of employees a company has. For all foreign-invested companies the default business activity is “foreign trade,” which carries with it a quota of 5%, meaning a company must employee 20 Mongolian employees for every expat it employees. Quotas go up from there depending on the sector – for example any company with a mining or exploration license has a quota of 10% while a company that extracts oil or natural gas can employee up to 80% of its workforce as expats. Read the rest of this entry »