e24702_SN004
Translated from French
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(d) the equitable nature of the terms envisaged for distribution of the sums collected.
3. The terms for granting and withdrawing such approval shall be determined by decree.
Chapter II. Operation
Article 118. Principles applicable to distribution. – 1. The collective management
society shall be required to establish distribution rules, taking into account the actual use
of its repertoire. It shall employ all reasonable means to determine the actual use thereof,
such as putting in place an effective documentation system and carrying out appropriate
polls.
2. It shall respect the principle of equal treatment of its members, particularly with
respect to national treatment, as referred to in Article 154.
3. Actions seeking the payment of remuneration owed to rights owners shall be subject
to a time limit of 10 years from the date on which the sums in question were credited to
their accounts.
Article 119. Management costs. – Management costs deducted by the collective
management society shall be compatible with generally recognized good governance
practices and shall, to the extent possible, be proportional to the actual cost of managing
the rights in the work, performance, phonogram or videogram.
Article 120. Statutory deductions. – The collective management society may make
deductions in accordance with its statutes in order to finance social action and cultural
activities, provided that the amount of such deductions remains within the limits allowed
by generally recognized good governance practices.
Article 121. Non-distributable amounts. – Sums which, for practical or legal reasons,
cannot actually be distributed may be shared among the owners of rights in the category
concerned, on terms approved by a two-thirds majority of the society's general assembly.
Article 122. Allocation for cultural purposes of a percentage of remuneration for
private copying. – 1. Collective management societies shall use 15 per cent of the sums
obtained from remuneration for private copying for action to assist creation and promote
live entertainment and for training schemes for rights owners.
2. The distribution of the corresponding sums, which shall not be to the benefit of only
one single body, shall be subject to a vote at the society's general assembly, which shall
decide on the basis of a two-thirds majority. In the absence of such majority, a further
general assembly, convened specifically for that purpose, shall take a decision on the
basis of a simple majority.
Article 123. Auditing by members of the society. – 1. The members of the collective
management society shall have the right to obtain communication, at least once a year, of
the society's books and documents, and to submit questions in writing about the
management of the society, to which written replies shall be provided within one month.
However, a member may not obtain communication of the amount of royalties distributed