Cooperative Law of Mongolia

This document presents the ‘Cooperative Law of Mongolia. The Law aims to determine the legal basis for the structure and activities of cooperatives, and regulate the relations arising from the establishment, registration of the cooperative, termination of its activities and membership. The Law defines a cooperative as a “legal person established by individuals on a voluntary basis for the purpose of satisfaction of their social and cultural needs, governed and supervised in a democratic manner and conducting its business based on common ownership of its members”.The Law covers the following topics:

• Establishment and registration of cooperatives: The cooperatives membership, name, assets, contents of its ‘Charter, and registration;
• Members of a cooperative: Members admission, rights, duties, contribution, distribution in shares, withdrawal, exclusion and transfer of shares;
• The management of a cooperative, including:
  • Management meetings, members meetings, form and terms of announcement, the management board and its liabilities,
  • Details about the Director of the cooperative,
  • The auditing board and its members, meetings and power.
• The ‘Association of Cooperatives and its functions;
• Dissolution of a cooperative through a decision of the members meeting or through a court judgement and the various procedures that follow the decision.

The document concludes by describing liabilities for breaching the legislation and by stressing the need for the re-registration of cooperatives that were registered before the law came into force.