STIM's Statutes

For Föreningen Svenska Tonsättares Internationella Musikbyrå, STIM, u.p.a. Adopted at the annual general meeting of the Association held on 23 May 2019.

Business name

§ 1
The association’s business name is Föreningen Svenska Tonsättares Internationella Musikbyrå STIM u.p.a., (hereinafter referred to as the “Association”).

The Board of Directors’ registered office

§ 2
The Board of Directors’ registered office is in the City of Stockholm.

Purpose and activities

§ 3
The purpose of the Association, based on applicable copyright law, is to promote and administer the economic rights to music, with or without accompanying text, i.e. musical works in isolation or combined with literary works (hereinafter referred to as "Music"), which belong to the members of the Association and affiliated copyright holders, music publishers or other natural persons or legal entities holding rights or entitled to a share of the rights revenue for the use of Music, hereinafter collectively referred to as "Rights Holders".

The activities are carried out by the Association individually, or in cooperation with other organisations or companies, by collectively representing, managing, protecting and safeguarding the interests of the Rights Holders based on management assignments entrusted to the Association, with the purpose of collecting rights revenues and distributing these payments to the Rights Holders and to carry out activities that are compatible therewith. The Association's activities are not run for profit.

The Association's activities are intended to promote copyright, copyright-protected music and musical diversity.

§ 4
In these statutes, copyright holder refers to a natural person – composer, adapter and lyricist – who has created a work and holds the copyright of a musical work with or without text.

In these statutes, music publisher refers to a natural person or legal entity engaged in music publishing activities and, on the basis of agreements (e.g. music publishing agreements, sub-publishing contracts or administration agreements) with copyright holders of Music, has been granted the right to defend and represent the music rights of these copyright holders as well as the right to collect a share of the rights revenue arising from the use of the works.

§ 5
The Association performs its activities by granting, on behalf of Rights Holders, permission (licence) to use Music, by copying, transmission to the general public, public performance and the distribution of recorded copies of Music to the general public, as well as by collecting, distributing and paying such revenue to Rights Holders or to the nominee as designated by the Rights Holder (referred to as a management assignment).

Management assignment

§ 6
The management assignment is entrusted to the Association by means of the Rights Holders entering into an affiliation agreement with the Association. A Rightsholder who has entrusted a management assignment to the Association is designated an Affiliate Rights Holder. The management assignment may include one or more categories of rights, which are established by a resolution of the annual general meeting. The terms and conditions for the management assignment are set out in the affiliation agreement as it is worded at any given time.

§ 7
An Affiliate Rights Holder has the right to terminate or limit an assigned management assignment at any time as provided for in the affiliation agreement.

§ 8
Any party who has entrusted a management assignment to the Association, whereby one or more categories of rights have been granted to the Association may, notwithstanding this grant, independently grant permission to use the rights, categories of rights or types of works covered by the assignment, provided that this is not for the purpose of acquisition.

Membership

§ 9
Affiliated Rights Holders, who meet the following conditions, are accepted as members subject to the approval of the Board of Directors:

  • The Rightsholder shall have entered into an affiliation agreement with the Association. The terms and conditions of the affiliation agreement are those adopted by the annual general meeting at any given time.
  • Rights Holders who are copyright holders, shall have received annual settlements from the Association of at least SEK 200, for a minimum period of three consecutive years prior to application for membership, for transmission to the general public, public performance, copying (mechanical reproduction) or distribution of works to the general public.
  • Rights Holders who are Music Publishers, or natural persons or legal entities engaged in activities comparable to Music Publishing, shall have received annual settlements from the Association equal to at least the amount constituting the Swedish Tax Agency’s turnover limit for VAT registration at any given time, for a minimum period of three consecutive years prior to the application for membership, for transmission to the general public, public performance, copying (mechanical reproduction) or distribution of works to the general public.

§ 10
Members who are admitted to the Association retain their membership regardless of the future scope of the rights granted or future annual settlement.

§ 11
A member can only belong to only one category of rights holder from the rights holder categories represented by the Association at any given time. Thus, a natural person can never become a member as both a copyright holder and as a music publisher.

§ 12
The application for membership has to be submitted on the application form (membership application) applying at the time and shall be signed personally and witnessed. The Board of Directors considers the application at the next Board meeting.

§ 13
If the Board of Directors approves the application, the member is admitted to the Association and listed in the Association's membership register.

Contributions

§ 14
Each contribution in the Association shall be SEK 10. Members are not permitted to participate in the Association by more than one contribution. The contribution is paid by a deduction of SEK 10 from the first settlement following the Board of Directors acceptance of the Affiliate Rights Holder as a member.

Liability for the Association's obligations

§ 15
Pursuant to the Act on Economic Associations, in the wording applicable at any give time, the Association is liable for its obligations only in so far as these can be covered by its assets, including due but unpaid contributions.

Termination of Membership

§ 16
Members may give notice of their resignation from the Association. Notice is given on the resignation form valid at any given time. Notice shall be addressed to the Board of Directors and be personally signed and witnessed.

A member's announcement of resignation from the Association does not affect the management assignment entrusted to the Association that, in order to cease, must be terminated separately.

§ 17
A party who, by division of joint property, inheritance or testament, is entitled to a member’s estate is not permitted to enter into the aforementioned party’s place. However, the management assignment previously assigned remains unchanged until otherwise agreed.

§ 18
If a member terminates a management assignment entrusted to the Association in its entirety, this will also be automatically considered as notice of resignation as a member of the Association.

Expulsion

§ 19
Any member in breach of these statutes, his or her affiliation agreement, or any special regulations issued by the annual general meeting or the Board of Directors at any given time, or who harms the Association or counteracts the Association's activities, interests and purposes or otherwise acts disloyally to the Association may be expelled.

§ 20
Questions regarding a member’s expulsion shall be determined by the general meeting of the association. Expulsions are only valid when ratified by at least three quarters of the voters present.

Exit

§ 21
Unless otherwise legally stipulated, exit from the Association takes effect at the end of the financial year that falls, at the earliest, one month after the member has announced his/her resignation or has been expelled or any other circumstance causing the exit occurred.

§ 22
In conjunction with their exit, members, subject to the limitations that follow from the Act on Economic Associations, have the right to the return of his/her member contribution of SEK 10. This is done by adding the member contribution to the next settlement immediately following the exit.

§ 23
A member who has been expelled does not have any right to recover his/her member contribution of SEK 10.

Loss of the right to participate in decisions

§ 24
A member who has been expelled or announced his/her retirement loses the right to participate in deliberations and decisions on the affairs of the Association with immediate effect.

Composition and appointment of the Board of Directors

§25
The Board of Directors shall consist of nine ordinary members and eight deputy members, of which two ordinary members and deputy members respectively shall be active in the Swedish Composers Association (Föreningen Svenska Tonsättare, "FST"), two ordinary members and deputy members respectively shall be active in SKAP – the Swedish Society of Songwriters, Composers and Authors ("SKAP"), two ordinary members and deputy members respectively shall be active in the Musikförläggarna SMFF Economic Association upa (the "Music publishers") and three ordinary members and two deputy members shall be independent. Thus, the Board of Directors of Directors is composed in such a way that the Rights Holders represented by the Association are reasonably and fairly represented. One of the three independent Board members shall be elected as Chairman of the Board.

The term "active" means here that the member or deputy member at the time, of nomination, by employment, position on the Board position or a committee of FST, SKAP or the Music Publishers, or by another assignment or appointment from one of the Boards for FST , SKAP or the Music Publishers participates in and exercises influence over FST's, SKAP's, or the Music Publishers ' activities and/or in the Association's activities. Board members or deputy members are not required to hold membership in FST, SKAP, the Music Publishers or the Association.

"Independent" means here that the member and the deputy member shall be regarded as being independent in relation to the Association based on an overall assessment. Independent members and deputy members are not permitted to be active, as defined in the preceding paragraph. This does not prevent Board members or deputy members from holding membership in FST, SKAP, the Music Publishers or the Association.

Employee representatives have the right to appoint Board members (Employee members) and deputy members to the Board of Directors pursuant to the Board Representation (Private Sector Employees) Act.

§ 26
During the election of Board members and deputy members, the annual general meeting shall always first consider whether the Nomination Committee's proposal can be adopted in its entirety. Should the annual general meeting not adopt the Nomination Committee's proposal in its entirety, the annual general meeting shall be asked if the Nomination Committee's proposal for Board members and deputy members, who are active in FST, SKAP and the Music Publishers, can be adopted in its entirety. If the annual general meeting adopts the Nomination Committee's proposal in these parts, the annual general meeting shall then be asked whether the Nomination Committee's proposal for independent Board members and independent deputy members respectively can be adopted. If the Nomination Committee's proposal in these parts is not adopted, all nominated candidates for the positions of independent Board members and independent deputy members shall be put to the vote in an election.

Should the annual general meeting reject the Nomination Committee's proposal for Board members and deputy members who are active in FST, SKAP and the Music Publishers in its entirety, the annual general meeting shall then be asked if the Nomination Committee's separate proposals for Board members and deputy members active in FST, SKAP and the Music Publishers, respectively, can be adopted individually. If the annual general meeting does not adopt the Nomination Committee's separate proposals for Board members and deputy members who are active in FST and the Music Publishers respectively, an election between different candidates shall take place in the same manner as for independent Board members described above. The elections are to be carried out in such a way that the nominated candidates for the FST are put to the vote against each other, the nominated candidates for SKAP are put to the vote against each other and the nominated candidates for the Music Publishers are put to the vote against each other. These elections shall take place before the election for persons to sit as independent Board members and independent deputy members.

The winner of these elections is the candidate who receives the most votes. If the candidates receive the same number of votes, the election is decided by the drawing of lots, unless the meeting has resolved prior to the election that a new vote is to take place in the event of a tie.

§ 27
Board members and deputy members are appointed by the Association’s general annual meeting for the period until the conclusion of the annual general meeting held during the second financial year following the election; however, the term of office shall be determined so that five and four Board members respectively are replaced every two years.

The annual general meeting in conjunction with the election of deputy members shall state if the deputy member is the first or second deputy for the category of Board member to which each deputy belongs. Deputy members replace ordinary members within the category to which the deputy belongs in the order determined by the annual general meeting.

The independent Board member appointed to be the Chairman of the Board does not have a deputy member.

§ 28
The Board of Directors appoints a first and second deputy Chairman from among its members. Furthermore, the Board of Directors appoints a secretary, either from among its own members or externally.

§ 29
The Board of Directors has a quorum when the number of Board members present as elected by the annual general meeting exceeds half the total number of Board members.

§ 30
All Board members and deputy members have the right, during the duration of their Board mandate, and notwithstanding the provisions of § 9, to become members of the Association. Membership ceases immediately in conjunction with the Board mandate ceasing.

Duties of the Board of Directors

§ 31
The Board of Directors shall continuously monitor whether the individuals who manage the Association's activities fulfil their obligations, and decide on matters delegated to it by resolutions of the annual general meeting. The Board of Director's obligations are regulated in more detail in the Board’s rules of procedure. The Board of Directors is not permitted to participate in the day-to-day management of the Association's affairs.

§ 32
Through the annual general meeting’s adoption of these statutes, the Board of Directors has been delegated the right, with the restrictions that follow from the Collective Management of Copyright Act (2016:977), chapter 5, section 6, second paragraph, to make decisions regarding risk management strategies, approvals of acquisitions, sales and mortgaging of real estate, approvals of mergers and alliances, formation of subsidiaries and acquisition of companies, shares or rights in companies, and approval of borrowing, lending and pledging of assets.

Chief Executive Officer

§ 33
The Board of Directors appoints a Chief Executive Officer who is responsible for the day-to-day management of the Association's affairs.

Signing on behalf of the Association

§ 34
The Board of Directors represents, and is the duly authorised signatory for, the Association. Another party or other parties assigned by the Board of Directors can also sign on behalf of the Association.

Auditors

§ 35
To review the management of the Board of the Directors and the Association’s financial statements, a registered firm of auditors, an elected auditor and a deputy for the latter are appointed annually at the annual general meeting for the period until the conclusion of the next annual general meeting.

Financial statements

36 §
The Association's financial year is the calendar year. The annual report and other financial statements shall be submitted to the auditors for review by no later than 1 April, who shall submit an auditor's report by no later than 1 May.

Annual general meeting

§ 37
The annual general meeting is opened by the Chairman of the Board or, if the Chairman is not in attendance, the person appointed by the Board, after which the voting list is drawn up and presented for approval. Thereafter, the voting members present elect the Chairman and the secretary for the meeting.

§ 38
Members exercise their right to decide on the Association's affairs at the annual general meeting. A member has the right to attend, speak and vote at the general annual meeting unless a member has announced his/her resignation or been expelled from the Association beforehand. Each member has one vote.

§ 39
A member, who is a natural person, who is unable to be personally present at the annual general meeting, may exercise his or her right at the annual general meeting by proxy. The power of attorney shall clearly state the meeting for which it is intended and that it is only valid for that specific annual general meeting. The power of attorney shall be addressed to a specific person and be dated, signed by the member and authenticated by two witnesses. The requirement for the signature of two witnesses is not applicable for a power of attorney signed via electronic signature.

§ 40
A member who is a legal entity is represented at the annual general meeting by its legal representative (quorum of the Board, CEO or duly authorised signatory). If the member's legal representative cannot be personally present at the annual general meeting, the member may exercise his right at the annual general meeting by an agent provided with the power of attorney. The power of attorney shall clearly state the meeting for which it is intended and that it is only valid for that specific annual general meeting. The power of attorney shall be addressed to a specific person and be dated, signed by legal representative for the member and authenticated by two witnesses. The requirement for the signature of two witnesses is not applicable for a power of attorney signed via electronic signature.

§ 41
Prior to attendance at the annual general meeting, members should register their, or their proxy’s, attendance and, where appropriate, the attendance of any assistants no later than two weeks before the annual general meeting will take place. The power of attorney should be submitted at the same time as this registration.

Should a member wish to participate and vote by electronic means, this shall be notified to the Association no later than two weeks before the annual general meeting or immediately upon the notice of the annual general meeting, which is given two weeks before the annual general meeting.

§ 42
A proxy for a member does not have the right to represent more than three members at the same time. Nor may a person belonging to a different category of members or who, for any reason, has a different interest in the Association than the member, serve as proxy for that member. Nor may a proxy represent multiple members with conflicting interests or who belong to different categories of member.

§ 43
Members have the right to have a motion heard at the annual general meeting. For a motion to be heard at the annual general meeting, it must be submitted in writing and have been received by the Board of Directors no later than seven weeks prior to the meeting. Motions received after this date will not be heard, unless the Board specifically resolves to do so.

The Board of Directors shall present their written opinion on the motions to the annual general meeting. Motions, together with the Board of Director's opinion and the Board's own propositions shall be made available to members together with other documentation relating to the annual general meeting in accordance with §§ 50-51.

Nomination procedure

§ 44
Each member has the right to nominate persons to the Board of Directors. Nominations shall be in writing and contain the information necessary for the Nomination Committee to assess whether the candidate fulfils the criteria for electability as a Board member or a deputy member of the Association and shall be the available to the Nomination Committee by no later than 1 January. After this date, and up to the annual general meeting, only the annual general meeting's Nomination Committee has the right to nominate candidates.

Only those nominations for persons meeting the requirements presented in § 25, and who have accepted the nomination, shall be considered by the Nomination Committee and presented as electable at the meeting.

§ 45
Each member also has the right to nominate persons for positions on the Nomination Committee and for positions on the STIM’s council for the promotion of musical diversity and copyright. Nominations shall be submitted in writing and include the necessary information for the Nomination Committee to assess whether the candidate fulfils the criteria for electability as a member or deputy member of the Nomination Committee or STIM's council for the promotion of musical diversity and copyright, and these must have been received by the Nomination Committee no later than 1 January. After this date, and up to the annual general meeting, only the annual general meeting's Nomination Committee has the right to nominate candidates.

Only those nominations for persons meeting the requirements presented in §§ 53 and 59 respectively, and who have accepted the nomination, shall be considered by the Nomination Committee and presented as electable at the meeting.

§ 46
The Nomination Committee's proposals for the Board of Directors, proposals for STIM’s council for the promotion of musical diversity and copyright and proposals for the Nomination Committee, shall be made available to the members on the website or by any other suitable means no later than four weeks before the annual general meeting and be distributed to the members in connection with the notice to the meeting. Other electable nominees shall be made available to members in the same way.

§ 47
Voting at the annual general meeting takes place by open ballot, unless the annual general meeting decides that voting shall take place through a secret ballot. However, in the event of an election between different candidates, the voting shall take place through a secret ballot, if so requested by any of the voters.

Annual general meeting

§ 48
The annual general meeting shall be held annually before the end of May. The meeting shall be held in Stockholm or in another location temporarily determined by the Board of Directors.

Matters to be considered at the annual general meeting

§ 49
The annual financial statements and the auditor's report shall be presented at the annual general meeting. Apart from any other matters referred to the annual general meeting, the following matters shall be considered:

  1. preparation and adoption of the voting list;
  2. election of Chairman and secretary for the annual general meeting;
  3. election of two attendees to verify the minutes and two attendees to count the votes;
  4. resolution as to whether the annual general meeting has been properly convened;
  5. adoption of the agenda and rules of procedure;
  6. presentation of the Board of Director's annual report, administration report, income statement and balance sheet for the preceding financial year (including consolidated income statement and consolidated balance sheet);
  7. presentation of the auditor's report;
  8. resolution on the adoption of the income statement and balance sheet (including consolidated income statement and consolidated balance sheet);
  9. resolution on the appropriation of the Association's profit or loss according to the adopted balance sheet;
  10. resolution on the approval of the annual insight report;
  11. presentation of the operating plan and budget for the current financial year;
  12. report on the interests and remuneration of the Association's executive management;
  13. report on the Board's supervision and how the Board, as supervisory body, has exercised its decision-making rights;
  14. consideration of and resolutions on propositions;
  15. consideration of and resolutions on motions;
  16. resolution on discharge from liability for the Board members and Chief Executive Officer;
  17. election and dismissal of members and deputy members of the Board and election of Chairman of the Board;
  18. election of two auditors and two deputy auditors;
  19. election of members and deputy members to STIM’s council for the promotion of musical diversity and copyright;
  20. reporting of instructions for STIM's council for the promotion of musical diversity and copyright;
  21. election of members of the Nomination Committee;
  22. resolutions on fees to Board members, deputy members, auditors, deputy auditors, members and deputy members of STIM's council for the promotion of musical diversity and copyright, members of and Nomination Committee and members of other committees and councils;
  23. other matters;
  24. closing of the meeting.

Notice, communication and documentation relating to the annual general meeting

§ 50
Notice of the annual general meeting is given no earlier than four weeks and no later than two weeks prior to the annual general meeting and no earlier than four weeks and no later than two weeks prior to an extraordinary general meeting.

§ 51
Notice and other information to members shall be provided by means of information on the Association's website or sent to members via e-mail. If the e-mail address is not known, notice is posted to each member by ordinary mail to the address listed in the registry of members.

§ 52
The notice shall include a proposed agenda, stating all matters that are intended to be considered by the meeting. If there is a proposal to amend the statutes, or another matter of material significance for the Association and its members, this shall be set out. The notice shall also include information about when and where the documentation relating to the general annual meeting will be available to the members.

Nomination Committee

§ 53
The Association shall have a Nomination Committee, consisting of five members elected by the annual general meeting for the period until the annual general meeting concludes the following year. FST, SKAP and the Musik Publishers shall each nominate a member of the Nomination Committee. In addition, two independent members shall be nominated, with nominations open to all members of the Association.

The meaning of “independent” in this context is set out in § 25. Detailed rules regarding the criteria for members of the Nomination Committee follow from the Nomination Committee's rules of procedure.

The election of members to the Nomination Committee shall be carried out in such a manner that the annual general meeting decides whether the proposal for the Nomination Committee can be adopted. If the annual general meeting does not adopt the proposal, the annual general meeting shall be asked if the three candidates nominated by FST, SKAP and the Music Publishers can be accepted. If the annual general meeting adopts the nominated candidates, the annual general meeting shall be asked if the two proposed independent members can be approved. Should the nominated independent candidates not be approved, all nominated candidates for the positions of independent members of the Nomination Committee shall be put to the vote in an election

If the annual general meeting rejects any of the candidates nominated by FST, SKAP and the Music Publishers, they have the right to nominate another candidate at the meeting.

The winner of these elections is the candidate who receives the most votes. If the candidates receive the same number of votes, the election is decided by the drawing of lots, unless the meeting has resolved prior to the election that a new vote is to take place in the event of a tie.

§ 54
The Nomination Committee has its inaugural meeting immediately following the annual general meeting. The Chairman and secretary of the Nomination Committee are elected at this meeting.

§ 55
The Nomination Committee's task is, prior to the general meeting, preparing supporting documentation and proposals for resolutions on the appointment of:

  • Attendees to verify the minutes at the annual general meeting
  • Members and deputy members of the Board and the Chairman of the Board
  • Auditors and deputies
  • Members and deputy members of STIM's council for the promotion of musical diversity and copyright
  • Members of the Nomination Committee

The Nomination Committee shall also prepare supporting documentation and proposals for resolutions on fees to the Association's Board members and deputy members, members and deputy members of STIM's council for the promotion of musical diversity and copyright, members of the Nomination Committee, members of the Association's other committees and councils, Board members in the Association's subsidiaries and elected auditors and deputy auditors respectively.

§ 56
The rules of procedure for the Nomination Committee are established by the annual general meeting based on proposals from the Board and apply until the annual general meeting has decided otherwise.

General principles for deductions

§ 57
From the annual revenues for the Association's collective management of rights (rights revenues) and other revenues generated by the Association, the Association is entitled to make deductions for:

a) The Association's documented and legitimate expenses for management during the year (management expenses).

b) Social, cultural and educational purposes, up to a maximum of 10 percent of the amount remaining from total rights revenues and other revenues generated by the Association after the deduction of management expenses.

§ 58
The Association’s Board of Directors has the right to determine the deductions that will be applied relating to rights revenues from foreign sister organisations, the size of these deductions and any further restrictions regarding these deductions. In addition, the Association’s Board of Directors has the right to exempt rights revenues from deduction, in part or in whole, to the extent deemed necessary for commercial reasons or other objectively justifiable reasons.

STIM's council for the promotion of musical diversity and copyright

§ 59
The Association shall have a council for the preparation, decision and follow-up of the utilisation of deductions made for social, cultural and educational purposes. The council shall consist of five independent members and five independent deputy members elected at the annual general meeting. FST, SKAP and the Music Publishers shall each nominate an independent member and independent deputy member to STIM's council for the promotion of musical diversity and copyright. In addition to the above, two independent members and two independent deputy members shall be nominated, with nominations open to all members of the Association.

The meaning of “independent” in this context is set out in § 25. Detailed rules regarding the criteria for members and deputy members of STIM's council for the promotion of musical diversity and copyright follow from the Nomination Committee's rules of procedure.

The election of members and deputy members to STIM's council for the promotion of musical diversity and copyright shall be carried out in such a manner that the annual general meeting decides whether the proposal from the Nomination Committee can be adopted. If the annual general meeting does not adopt the proposal, the annual general meeting shall be asked if the three members and the three deputy members, respectively, nominated by FST, SKAP and the Music Publishers can be accepted. If the annual general meeting approves the nominated candidates, the annual general meeting shall be asked whether the two nominated independent candidates and, for these two, their personal deputies can be approved. Should these nominated candidates not be approved, all nominated candidates for the positions of independent members of STIM's council for the promotion of musical diversity and copyright shall be put to the vote in an election and, in the same manner, all nominated candidates for the positions as the independent members' deputies shall also be put to the vote in an election.

If the annual general meeting rejects any of the candidates nominated by FST, SKAP and the Music Publishers, these associations have the right to nominate another candidate at the meeting.

The winner of these elections is the candidate who receives the most votes. If the candidates receive the same number of votes, the election is decided by the drawing of lots, unless the meeting has resolved prior to the election that a new vote is to take place in the event of a tie.

A deputy members may only sit in the absence of the ordinary member for which the annual general meeting has determined the deputy member shall deputise.

§ 60
Member and deputy members of STIM’s council for the promotion of musical diversity and copyright are appointed for the period until the conclusion of the annual general meeting held during the second financial year following the election; however, the mandate period is to be arranged so that three and two members, respectively, are replaced in alternating years, along with their deputies.

§ 61
The STIM’s council for the promotion of musical diversity and copyright has its inaugural meeting immediately following the annual general meeting. The Chairman and secretary of STIM's council for the promotion of musical diversity and copyright are elected at this meeting

§ 62
The duty of STIM's council for the promotion of musical diversity and copyright is, according to the instructions of the Board of Directors, to prepare, determine and follow up the utilisation of deductions from rights revenues and other revenues for social, cultural and educational purposes.

§ 63
The instructions issued to STIM's council for the promotion of musical diversity and copyright are established each year by the Board of Directors and are presented to the annual general meeting. The council's decisions on the use of funds for social, cultural and educational purposes shall be subject
to review by an authorised public accountant, to ensure that the Board of Director's instructions have been followed.

General principles for distribution of remuneration to Rights Holders

§ 64
The distribution of the rights revenues remaining after the deduction of management expenses and other deductions, with consideration given, where applicable, to due interest on investments, takes place in accordance with the Association's distribution rules.

Regarding changes to the distribution rules, statutory requirements on the amendment of statutes apply.

The Association's profit for the year

§ 65
The Association's profit according to the adopted balance sheet shall be appropriated according to the decision of the annual general meeting.