Stock companies are obliged to convene their shareholders’ annual meetings within four months of the end of each fiscal year or before May 1 of each year according to Pursuant to Article 59 of Company Law of Mongolia.
Annual shareholders meeting is for protect right to exercise forth in Article 34 of the Company Law to discuss and resolve many of the most important issues for it’s shareholders and investors such as: To discuss and approve reports of business and financial activities of the joint stock company in the previous year,
and choose members of the company’s board of directors.
Stock companies must have a governance behavior and provide information transparency, thereby increasing their reputation among investors, it’s shareholders, and the public, creating favorable conditions for sustainable development and investment, and contributing to capital market development.
Therefore, the Board of Directors’s decision to convene its shareholders meeting of 2017 is pending.
Specifically, Article 60 of the Company Law requires the stock company’s Board of Directors to convene an annual shareholders’ meeting and it is critical to meet time of announcement of the regular shareholders meeting within a period of time.
If the Board does not hold a meeting within the period set forth in the law, it shall be deemed that the termination of any agreement shall be invalid unless the authority of the company’s Board of Directors is terminated except by law or statute.
Stock companies shall prevent any potential risks and potential consequences arising from not announcing their AGM and must fulfill its obligations under the law. We are advising The Board of Directors of stock companies which listed on Mongolian Stock Exchange that Annual Shareholders’ Meeting shall be held before its’ deadline.
The information and advice you need to convene your shareholders meetings can be obtained from the Mongolian Public Companies Association.
Contact us at mongolian.jsc@gmail.com and telephone (976) 9920-3430. Mongolian Public Companies Association.