1. General background

1.1 The "ZORIG" Foundation is non-profit and non-governmental organization, which serves society and takes as guidance in their activities the Law of NGOs and these by-laws
1.2 The official name of the non-governmental organization is "ЗОРИГ" САН, in English "ZORIG" Foundation.
1.3 The "ZORIG" Foundation is situated at the Ehkhtaivni orgon choloo 9A, Sukhbaatar district, Ulaanbaatar.
1.4 The Foundation will be considered to have been established, when founders decided to establish "ZORIG" Foundation and the Board and approved its statute.
1.5 The "ZORIG" Foundation shall have own sign, symbol, external and domestic account and form.
1.6 The Foundation's activities, its report, and balance are and shall be open to the public.
1.7 The Foundation shall submit its balance and the report of activities to the relevant State Bodies at the time required by law..

2. The mission and basic tendency of the activities

2.1 The main mission of the "ZORIG" Foundation shall be to advance the formation of democratic society and support political reforms in Mongolia, to spread democratic values to people, preserve human rights, freedom and social justice, respect pluralism and improve the system of transparency and accountability of government to the public.
2.2 The Foundation shall concentrate on the following activities for fulfill its mission:
1. Improving people's political education
2. Spreading democratic ideas
3. Researching political science, distributing information, publishing, advising and consultation
4. Coordinating political conflicts and formulating methods of mediating and collaboration
5. Participating and contributing to legislation on human rights and freedom
6. Improving people's participation in democratic process
7. Recognizing individuals and organizations who contributed substantially towards spreading democratic ideas
8. Supporting talented youth and students studying social science through financial aid, and
9. Cooperating with foreign organizations and foundations with similar missions.

3. Structure and control system of the "ZORIG" Foundation

3.1 The Foundation's represented authority is the Meeting of Founders. The Meeting of Founders shall elect Head of the Foundation, Leading and Controlling Board.
3.2 The Meeting of Founders shall have the following rights:
• Make amendments to the statute
• Reconstruct the Foundation
• Elect and discharge Head of the Foundation
• Elect Leading Board
• Control Leading Board's activities
3.3 The Leading Board shall have the following rights:
• Define Foundation's policy and basic tendency of activities
• Appoint and discharge Executive Director and discuss her/his report
• Define Executive Director's disposal and regulation of the property
• Approve Foundation's budget, working group structure, and arrangement
3.4 Leading Board shall consist of 11 persons, including Head of the Foundation and Controlling Board shall consist of 3 persons.
3.5 Head of the Foundation, Leading and Controlling Board shall be elected for 2 years.
3.6 Board of the Foundation shall hold a meeting not less than once a season and it shall be counted as valid when a majority of members participate. The meeting shall be announced 7 days in advance and members of the Board shall be informed of agendas, meeting place, and date. Members elected from other countries may give their proposal by phone or by letter if they can not participate.
3.7 The head of the foundation shall open the meeting of the Board. The meeting shall elect the chairperson of the meeting, approve agenda, and, if necessary, shall establish permanent or temporary Committee on election and other matters.
3.8 The meeting minutes of the Board of the Foundation shall be taken. Decisions shall be made by the majority of participants.
3.9 The Foundation Board shall make decisions according to the following rules:
1. The members of the Board shall have equal rights in making decision
2. The Board shall hold a secret ballot on issues of individuals, and hold an open ballot on other issues.
3. If the member of the Board has conflict of interest of considered issues, the member shall explain and may not participate in vote.
3.10 In the meeting minutes of the Foundation Board shall be recorded: agenda, decision taken, results of secret ballot by names, explanations of conflicts of interest, explanations of the members having principally different point of view.
3.11 A member of the Foundations Board may voluntarily withdraw himself from membership.
3.12 A member of the Foundations Board shall not get any payment except for compensation of the expenditures raised during the fulfilling of his functions.
3.13 Re-election and discharging from duties of member of the Foundations Board shall be decided by the meeting of the Founders. If member acts in contradiction with the Statute of the Foundation, does not fulfill member's duties, absented several times without good course, the member will be released from the Foundations Board by the meeting of the Founders.
3.14 The Head of the Foundation may have up to 2 Deputies. The Head shall have authority to appoint and suspend deputies from among members of the Board.
3.15 The Head of the Foundation shall exercise the following rights: represent Foundation within the country and abroad, preside at meetings of the Board, conclude a contract with executive directors and so on.
3.16 The Executive Director shall have the following rights: represent the Foundation within the rights approved by the Board, be responsible for Foundations internal activities, and dispose the property of the Foundation.
3.17 The Executive Director shall rule and organize daily work of the Foundation.
3.18 The rights, obligations, payment and other related issues shall be reflected in the contract.
3.19 The Foundation shall not be responsible for the casualties caused by illegal operations of the members of the Board, executive Director or employers.
3.20 The Foundationm, in order to advertise its activities, publish methodology and information.

4. Financing of the Foundation

4.1 The budget of the Foundation shall consist of the following resources:
1) Member's voluntary fees and donations
2) Financing of project implementation from State, Foreign and Domestic organizations.
3) Donation by foreign and Mongolian citizens and enterprises.
4) Income from activities connected with implementation of the Statute mission.
5) Loans and heritage.

5. Amendments to the By-Law

5.1 The By-Law shall be amended by the Board. The Ministry of Justice shall be informed of amendments in 30 days time.

6. Report

6.1 The Foundation shall submit its balance to the Tax Office, and the report of activities to the Ministry of Justice before Feb.15 of the following year.

6.2 The names and properties of donators over 700.000 tugrug shall be attached.

7. Dismissal

7.1 The Foundation may be dismissed after fulfilling its mission or due to other reasons. The decision to dismiss shall be taken by the Board and announced to the public and Ministry of Justice within 21 days.
7.2 In case of dismissal the property of the Foundation shall be transferred to non-governmental organization with similar mission, or in the absence of the former disposed on activities conform to the mission of the Foundation.