On 2 July 2026, Mongolia enacted the Law on Governance of State and Local Government-Owned Companies (“SOE
Governance Law”), establishing a dedicated legal framework governing the establishment, ownership, governance,
management, financing, oversight and disclosure of state and local government-owned companies.
The law will enter into force on 1 January 2027.

The SOE Governance Law forms part of Mongolia’s broader reform of the state-owned enterprise
(“SOE”) sector. Strengthening SOE governance, efficiency and transparency, while facilitating access
to domestic and international capital markets, has been a longstanding policy objective reflected in key
national development policies, including Vision 2050, the Mongolia Long-Term Development Policy
2030 and the Government Action Plan for 2024–2028.
While much of the SOE Governance Law consolidates and codifies requirements previously dispersed
across the State Property Law, Company Law and sector-specific legislation, it introduces a more
coherent framework for SOE governance. Key changes include clarifying the state’s role as owner,
strengthening board independence and accountability, imposing greater restrictions on the
establishment of new SOEs, enhancing transparency and disclosure, and promoting commercial
discipline, competitive neutrality and managerial autonomy.
The new framework operates alongside, rather than replacing, the State Property Law. The SOE
Governance Law specifically governs the ownership and corporate governance of state and local
government-owned companies, while the State Property Law continues to regulate broader matters
relating to state and local government property and other state-owned entities outside the scope of the
SOE Governance Law.
We highlight below the key changes introduced by the SOE Governance Law.

See the full content at the link https://mcusercontent.com/5fb460b5ee144f6ec534bc339/files/513efc25-5288-fa2a-26e9-2a1726da863a/Legal_Update_SOE_Governance_Law.pdf 

Published Date:2026-10-03