These are financial instruments shall constitute securities which are subject to regulation by Clause 5.1 Law on the Securities market including public company shares, company debt instruments, shares or units of the investment fund, depositary receipts, asset-backed securities, warrants or rights to subscribe a specified quantity of shares or debt instruments offered to investors from the securities issuer at an agreed-upon price during a specified period, derivative financial instruments, and other financial instruments prescribed by the Financial Regulatory Commission as a security in accordance with this Law.
By defined in Company law:
An 'open public company' is a company whose capital invested by the shareholders is divided into shares, which are registered at the securities trading organization, and which may be freely traded by the public.
A 'closed public company' is a company whose capital invested by the shareholders is divided into shares, which are registered at the securities depositing organization, and which are traded in the market in a closed extent outside of the securities trading organization.
By defined in Banking Law:
"Bank" is a profit seeking legal entity which has paid in capital consisting of cash funds invested by shareholders, and the shareholders of which bear financial liability to the extent of their invested capital, and is engaged in financial intermediary services such as taking deposits, extending loans on its own behalf and executing payments and settlements under a permit from the Bank of Mongolia.
The shareholders meeting shall be the supreme governing body of a bank.
To approve the bank charter, its amendments and revisions;
To change the structure and size of equity;
To reorganize the bank;
To liquidate the bank;
To review and approve the Board of Directors' annual report on bank operations;
To review and approve the Board of Directors opinion regarding audited financial statements;
To appoint, terminate the appointment of, and dismiss members of the Board of Directors upon receipt of Bank of Mongolia notice indicated in the Article 32.3 of this Law;
To set out powers of the Chairman and members of the Board of Directors, institute the responsibility framework, remuneration, and terms of reference of the Board of Directors;
Matters pertaining to the bank supervisor (Supervisory Board) shall be governed under Article 92 of the Company Law.
To set out, review, and amend the bank strategy, to approve the organizational structure, risk management policy, annual budget, business plan, and performance targets;
To appoint executive management of the bank upon authorization of the Bank of Mongolia;
To define the powers and responsibilities of executive management, oversee its activities and approve its compensation package;
To call for regular and extraordinary shareholders meetings;
To issue an opinion regarding the matters set forth in Articles 29.2.6 and 29.2.7 of Banking Law and present it to the shareholders meeting for consideration;
To form an internal audit unit in the bank independent from executive management, to approve its budget and staffing, to appoint its managers and staff, to outline its terms of reference, and to approve salaries and bonuses;
To outline prudent governance policies and procedures of the bank and oversee their enforcement;
To establish proper controls encompassing the bank's accounting, financial reporting, external and internal audit, risk management, financial and operational control, and compliance;
To oversee the disclosure of financial statements specified in Articles 37 and 38 of Banking Law and other information.
Address: TBD HQ, Peace avenue 19, Sukhbaatar district, Ulaanbaatar, Mongolia
Email: [email protected]
Telephone: 976 11 328227