To protect the rights of minority shareholders, the Financial Regulatory Commission held a meeting to discuss the procedures for allocating dividends by joint-stock companies on January 29th, 2020. Accordingly, the executives of joint-stock companies have been instructed to allocate dividends only through the “Mongolian Central Securities Depository”  LLC, while brokerage companies are given the role of providing information to the shareholders.

In the past, some joint-stock companies allocated dividends at the workplace, requiring the shareholders to acquire dividends from company premises, and in some cases, this caused difficulties hindering shareholders from acquiring their dividends due to lack of information.  With the allocation of dividends through a specific organization, the shareholders will have the opportunity to deposit the dividends received in a centralized personal account.

By relying on the brokerage company, the shareholder can submit a request for funds and transfer it to his/her designated bank account anywhere.

Issuance of this Resolution by the Financial Regulatory Commission urges the importance of protecting the rights of minority shareholders and instructs the executives of joint-stock companies to abide by the Resolution.

Please click here for the Resolution. (Mongolian)

Source: The Financial Regulatory Commission

2020.02.12