1. The territory of Mongolia shall be divided administratively into Aimags and a capital city; Aimags shall be subdivided into Soums; Soums into Baghs; the capital city shall be divided into districts and districts into Horoos.
2. Legal status of towns and villages located on the territories of administrative divisions shall be defined by law.
3. Revision of an administrative and territorial unit shall be considered and decided by the State Ikh Hural on the basis of a proposal by a respective local Hural and local population, and with account taken of the country's economic structure and the distribution of the population.
1. Aimag, the capital city, Soum and district are administrative, territorial, economic and social complex having their own functions and administrations provided for by law.
2. Borderlines of Aimags, the capital city, Soums and districts shall be approved by the State Ikh Hural at the presentation by the Government.
1. Governance of administrative and territorial units of Mongolia shall be organized on the basis of combination of the principles of both self-government and central government.
2. The self-governing bodies in Aimag, capital city, Soum and district shall be Hurals of Representatives of the citizens of respective territories; in Bagh and Horoo- General Meetings of citizens. In between the sessions of the Hurals and General Meetings, their Presidiums shall assume administrative functions.
3. Hurals of Aimags and the capital city shall be elected for a term of four years. The memberships of these Hurals as well as those of Soums and districts, and the procedure of their election shall be determined by law.
1. State power shall be exercised on the territories of Aimags, the capital city, Soums, districts, Baghs and horoos by their respective Governors.
2. Candidates for Governors are nominated by the Hurals of respective Aimags, the capital city, Soums, districts, Baghs and Horoos. Governors of Aimags and the capital city are appointed by the Prime Minister; Soums and district Governors by the Governors of Aimags and the capital city; Governors of Baghs and Horoos by the Governors of Soums and districts respectively for a term of four years.
3. In case the Prime Minister and Governors of higher levels refuse to appoint the gubernatorial candidates, new nominations shall be held in the manner prescribed in Section 2 of this Article. Pending the appointment of a new Governor the previously appointed Governor shall exercise his/her mandate.
1. While working for the implementation of the decisions of a respective Hural, a Governor, as a representative of State authority, shall be responsible to the Government and the Governor of higher instance for proper observance of national laws and fulfillment of the decisions of the Government and the respective superior body in his/her territory.
2. Governor shall have a right to veto decisions of respective Aimag, capital city, Soum, district, Bagh and Horoo Hurals.
3. If a Hural by a majority vote overrides the veto, the Governor may tender his/her resignation to the Prime Minister or to the Governor of higher instance if he/she considers that he/she is not able to implement the decision concerned.
4. Governors of Aimag, the capital city, Soum and district shall have secretariats/Offices of the Seal.
The Government shall determine the structure and staff limit individually or by a uniform standard.
1. Local self-governing bodies besides making independent decisions on matters of socio-economic life of the respective Aimag, the capital city, Soum, district, Bagh and Horoo shall organize the participation of the population in solving problems of national scale and that of larger territorial divisions.
2. The authority of higher instance shall not take decision on matters coming under the jurisdiction of local self-governing bodies. If law and decisions of respective superior State organs do not specifically deal with definite local matters, local self- governing bodies can decide upon them independently in comformity with the Constitution.
3. If the State Ikh Hural and Government deem it necessary they may delegate some matters within their competence to the Aimag and capital city Hurals Governors for their solution.
1. Hurals of Aimag, the capital city, Soum, district, Bagh and Horoo shall adopt resolutions and Governors shall issue ordinances within their competence.
2. Resolutions of the Hurals and Ordinances of the Governors shall be in conformity with law, Presidential decrees and decisions of the Government and other superior bodies, and shall be binding within their respective territories.
3. Administrative and territorial units, and the powers, structure and procedure of their governing bodies shall be determined by law.