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Statute

On the basis of the article 165 and 166 of the Copyright and Related Rights Law ("Official Herald of RS" number 104/09) and article 12 and 22 of the Law about Associations ("Official Herald of RS" number 51/09) and according to the article 23 of the Statute of Sokoj of February 26, 2006 with Amendments of July 1, 2006 and March 30, 2008, Assembly of Sokoj, on the day of March 10, 2010, has adopted

STATUTE
of Sokoj - Serbian Music Authors' Organization


I GENERAL PROVISIONS


Article 1.
Sokoj - Serbian Music Authors' Organization (hereinafter: Sokoj) is a non-for-profit organization whose goal is collective management of economic rights of music authors and other right holders, on the basis of contract with Sokoj or on the basis of the law.

Article 2.
According to this Statute, authors are composers, lyricists and arrangers of musical works.
Right holders are other physical and legal entities who acquired their economic rights on musical works in accordance with the law.

Article 3.
Name of the organization is: Sokoj - Serbian Music Authors' Organization.
Abbreviated name is: Sokoj
Name of the organization in English language is: Sokoj - Serbian Music Authors' Organization.
Name Sokoj is used in Serbian language, in Cyrillic or Latin alphabet and in English language.

Article 4.
Main office of Sokoj is in Belgrade, Misarska 12-14.
Activity of Sokoj is performed on the territory of the Republic of Serbia.

Article 5.
Sokoj has its seal. Seal is round and contains text: "Serbian Music Authors' Organization" on the edge, "Sokoj" in the middle, and "Belgrade" on the bottom of the seal.

Article 6.
Sokoj is a member of International Confederation of Societies of Authors and Composers (CISAC) and International Bureau of Mechanical Rights Societies (BIEM).
Sokoj may also become a member of other related international organizations.

Article 7.
Sokoj is a legal entity which has rights, obligations and liabilities originating from the law and this Statute and is responsible for its obligations with entire property at its disposal.

Members of Sokoj are jointly and severally responsible for damage done to the organization by their decision if the decision is made by rough carelessness or with intention to cause damage, except if they have, when the decision was made, separated their opinion into the minutes.

Manager of Sokoj is responsible for the damage caused to the organization on same conditions as the members of Sokoj. Responsibility for caused damage is established in the organization or before the competent court.

Article 8.
Sokoj is represented by General Manager.
Sokoj may also be represented by other persons appointed by Managing Board, i.e. by General Manager, within obtained mandate for representation.

Article 9.
Work of Sokoj is open to the public and openness to the public is carried out through:
  • information to members, users and public through media and web page of Sokoj about the categories of right holders which Sokoj represents, economic rights which are being realized, categories of users of subject matter of protection and other payers of remuneration, content of general enactments, number and list of bilateral contracts with foreign organizations, authorized representatives and working hours;
  • information to members through web page of Sokoj about the list of the members of current session of the Assembly, Managing Board and Supervisory Board, annual reports about business operations, Assembly meetings and decisions of the Assembly, Managing and Supervisory Board,
  • giving information about the repertoire and conditions under which it realizes rights, to each interested user or other person with legal interest.
II ACTIVITY

Article 10.
Sokoj performs activity - 91110 - Collective management of economic rights of the authors:
  • right of recording and copying,
  • right of putting copies of work into circulation,
  • right of renting out copies of work,
  • right of performance,
  • right of presentation,
  • right of transmission of performance or presentation,
  • right of broadcasting,
  • right of rebroadcasting,
  • - right of public communication, including interactive making the work accessible to the public,
  • - right of public communication of the work which is broadcasted,
  • - right of public communication of the work from the phonogram or videogram,
  • - right of special remuneration from the import, i.e. from sale of technical devices and phonograms and videograms, for which may be assumed with probability that they will be used for such a multiplication,
  • - right of remuneration from loan for use.

Article 11.
On the basis of legal authorizations, i.e. authorizations of authors and right holders, Sokoj performs activity of collective management of copyright in the country and abroad, except of the rights of those authors and right holders who excluded their rights explicitly, i.e. of those authors and right holders to whom, in accordance with general enactments of Sokoj, protection was cancelled.
Authors and right holders by the contract about exclusive transfer of their rights transfer to Sokoj exclusive authorization (hereinafter: protection entrusted by the contract to the Sokoj), to, by the contract with the users of musical works, issue licenses for the use of those works, as well as the exclusive authorization for collection of belonging remunerations, in accordance with the law, this Statute and other general enactments and decisions of Sokoj.

Article 12.
On the basis of the law, international agreements and Sokoj's contracts with foreign societies, Sokoj also manages rights of foreign authors and right holders on the territory of Republic of Serbia.

Article 13.
In addition to carrying out activity of collective management of copyright, Sokoj may also, in accordance with the law, carry out administrative and technical services in the name and for the account of other organization as well as the activity through which artistic, professional and social interest of right holders, is realized.

Article 14.
Uniform principles, criteria and procedures of managing copyright are equally applied on all authors and right holders whose rights Sokoj manages, in accordance with the Statute and
enactments of Sokoj.

Article 15.
Protection of Sokoj terminates by cancellation of the contract in written form by the author or right holder, or by the decision of Sokoj.
Protection may be cancelled to the author or right holder in case of his disregard of enactments of Sokoj or the decisions of its bodies, violation of reputation of Sokoj or for other justified reason.
Protection terminates upon expiry of the calendar year in which contract was cancelled by the author or right holder, i.e. in which the decision about cancellation of protection was made by the Managing Board.
Procedure for cancellation of protection to the author or right holder is established by special enactment, made by the Managing Board, while the decision about cancellation of protection is made by the Assembly.

III MEMBERSHIP

Article 16.
Members of Sokoj are authors and right holders having their residence, i.e. main office for legal entity, on the territory of Republic of Serbia, who, by contract, entrusted protection of their rights with Sokoj.

IV ORGANS OF SOKOJ

Article 17.

Organs of Sokoj are:
  1. Assembly
  2. Managing Board
  3. General Manager
  4. Supervisory Board

Article 18.
Member of the organ of Sokoj may not be the person who is in conflict of interests.
Conflict of interests has a person who is an owner, co-owner, general manager, member of the administrative organ or has a managerial position which enables him to decide about business policy of physical or legal entity which has status of user of the musical work, while duration of mentioned circumstances and 6 months upon their cessation.
In conflict of interests also is legal entity which has the status of user of the musical work.
Status of user of the musical work, according to the provisions about conflict of interests,
has physical or legal entity which uses musical works in accordance with the law, regardless whether it has contract about use of musical works with Sokoj or not.
Procedure of determining existence of conflict of interests and acting in case of its existence is established by the special enactment made by Managing Board. Initiative for determining
existence of conflict of interests is being directed to Supervisory Board, which delivers its opinion about existence or non-existence of conflict of interests to the Managing Board. Upon submitted opinion, Managing Board makes a decision which is final.
Mandate, i.e. membership in the organ of Sokoj of the person with the determined conflict of interests ends by the decision of Managing Board.


1. ASSEMBLY

Article 19.
Assembly is the highest organ of Sokoj.
Assembly decides at meetings.
Assembly consists of all the members of Sokoj, but due to large number of members, according to the representation principle, decides current session of the Assembly which is established each year by Managing Board on the basis of criteria foreseen by this Statute.

Article 20.
Member of the Assembly may be:
1) author, member of Sokoj, who cumulatively satisfies following requirements:
  • minimum 10 registered works which have been published or issued,
  • contract about protection in continuous duration for the last five accounting years,
  • nonexistence of conflict of interest from the article 18;
2) authorized representative of domestic publisher of musical works ("publisher"), if publisher cumulatively satisfies following requirements:
  • has its principal place of business on the territory of Republic of Serbia,
  • has concluded with Sokoj contract about exclusive transmission of copyright authorizations,
  • represents at least 10 domestic authors,
  • represents repertoire of at least 250 published works of domestic authors,
  • nonexistence of conflict of interest from the article 18;
Current session of the Assembly, on condition of satisfying all requirements from the previous paragraph, consists of:
  • 60 authors of artistic and jazz music, ranked first by the average of received royalties,
  • 180 authors of other genres, ranked first by the average of received royalties,
  • up to 10 representatives of domestic publishers of musical works, ranked first by the average of received royalties, so that each publisher may have one representative at the most.
Realized royalty in one accounting year is a sum of royalties which author i.e. right holder has received through Sokoj from all grounds in that accounting year.
Average realized royalty is average for the last five accounting years.

Article 21.
Author or publisher, who does not want to be the member of current session of the Assembly of Sokoj, may sign statement about nonacceptance of the membership in the current session of the Assembly.
In that case the member of current session of the Assembly becomes the first author from the list of authors of artistic, jazz or popular music, i.e. of publishers, through the procedure established by this Statute.

Article 22.
Decision about getting or ending the status of a member of current session of the Assembly is made by Managing Board in the form of the List of the members of current session of the Assembly, which, on the basis of criteria fixed by this Statute, is established for each calendar year after the division of royalties for previous calendar year, until September 30 of the current year at the latest.
Decision about acquiring or ending the status of a member of current session of the Assembly is made by Managing Board, upon previously obtained opinion of the Supervisory Board.

Article 23.
List of the members of current session of the Assembly is being announced on the bulletin board and on the web page of Sokoj.
Rights and obligations of members of current session of the Assembly are being acquired or ended by establishing the List of the members of current session of the Assembly.

Article 24.
Within competence of the Assembly is to:
  1. Pass a Statute of Sokoj and decide about its amendments,
  2. Pass Distribution rules and decide about its amendments,
  3. Discuss and adopt reports of the Managing Board,
  4. Discuss and adopt reports of the Supervisory Board,
  5. Discuss and adopt reports of the Authors' Council,
  6. Establish elements of business policy and makes Financial Plan of Sokoj
  7. Discuss and adopt annual financial report about dealings of Sokoj,
  8. Decide about joining related international organizations,
  9. Decide about cancellation of protection to the member of Sokoj,
  10. Elect and release members of the Managing Board,
  11. Elect and release members of the Supervisory Board,
  12. Appoint members of the Authors' Council,
  13. Perform also other tasks in accordance with the law, this Statute and other general enactments of Sokoj.

Article 25.
Assembly meeting is held at least once a year.
Decision about convening Assembly meeting is made by the Managing Board,
  • at its own initiative,
  • upon the proposal of Supervisory Board, or the Authors' Council or at least 20% of members of current session of the Assembly, within 30 days from the day when proposal for convening Assembly meeting was submitted. Proposal has to be in written form and to be justified.
All members of current session of the Assembly, according to the List of the members of current session of the Assembly valid at the moment of its convening, are being invited to the Assembly meeting, that in accordance with the Operating procedure about the work of the Assembly.

Article 26.
Assembly may validly work and make decisions if at least 20% from the total number of members of the Assembly are present.
Assembly decides about all matters from its competence by simple majority of the present members of current session of the Assembly, except item 1, paragr.1 article 24 of this Statute, when it is decided by simple majority of votes of members of current session of the Assembly.
Operating of the Assembly is in detail defined by Operating procedure about the work of the Assembly.

2. MANAGING BOARD

Article 27.
Managing Board administers the operations of Sokoj in accordance with the decisions of the Assembly.
Managing Board consists of 13 members selected by the Assembly and out of the members of the Assembly, who among each other select the president and one or more vice presidents of the Managing Board.
Managing Board must contain adequate representation of genres, so that there are 4 authors in the genre of artistic and jazz music, 8 authors of other genres, as well as one representative of domestic publisher who may not be the president of the Managing Board.
Candidates for members of the Managing Board from the genre of artistic and jazz music may be proposed by at least 10 authors of artistic and jazz music, who are the members of the current session of the Assembly.
Candidates for members of the Managing Board from other genres may be proposed by at least 10 authors of those genres, who are the members of the current session of the Assembly.
Candidate for the member of the Managing Board - representative of the domestic publisher may be proposed by at least 10 authors, who are members of the current session of the Assembly.
Mandate of the member of the Managing Board lasts 4 years from the moment of the election, and membership is limited to two consecutive mandates at the most.
Managing Board or some of its members may, by the decision of the Assembly, be released even before the expiry of the mandate.

Article 28.
Within the scope of the competence of the Managing Board is to:
  1. Pass all general and individual enactments of Sokoj, except those which are by the law and this Statute in the competence of other bodies of Sokoj,
  2. Establish current policy of acquisition and distribution of funds,
  3. Establish general settlements of royalties on all basis,
  4. Decide about conclusion of contracts with foreign societies,
  5. Makes a List of members of the Assembly,
  6. Appoints and dismisses General Manager of Sokoj,
  7. Prepares meetings of the Assembly of Sokoj,
  8. Carries out other tasks in accordance with the law, this Statute and other general enactments of Sokoj.

Article 29.
Managing Board may validly work and decide if more than half of total number of members are present.
Managing Board decides by the majority votes from total number of members of Managing Board.
Managing Board defines its work in detail by the Operating procedure of Managing Board.

Article 30.
Managing Board is responsible for its work to the Assembly.
President of the Managing Board submits Report about the work of the Managing Board at the regular Assembly meeting.

3. GENERAL MANAGER

Article 31.
General Manager of Sokoj operates the work of Professional service of Sokoj.
General Manager organizes process of work and manages business operations of Sokoj within the scope of the activities of Sokoj, in accordance with the decisions of the Assembly and of the Managing Board. General Manager passes and applies enactment on Systematization of jobs and applies other enactments and decisions of bodies of Sokoj.

Article 32.
General Manager is appointed and dismissed by the Managing Board and is, for its work, responsible to the Managing Board.
Mandate of the General Manager lasts for 4 years with the possibility of being appointed again; however, by the decision of the Managing Board he may be dismissed even before the expiry of the mandate.
Managing Board may dismiss General Manager at any time, in case of his actions contrary to the law and enactments of Sokoj, in case of glaring violation of rights and liabilities or in case of established conflict of interests.

4. SUPERVISORY BOARD

Article 33.
Supervisory Board is a control body of Sokoj, which follows and controls the work of Sokoj.
Supervisory Board consists of 5 members, authors, elected by the Assembly from its members, who among each other elect the president of the Supervisory Board.
Supervisory Board must contain adequate representation of genres.
Mandate of the member of Supervisory Board lasts for 4 years from the moment of his election, and the membership is limited to two consecutive mandates at the most.
By the decision of the Assembly, Supervisory Board or some of its members may be dismissed even before the expiry of the mandate.

Article 34.
Within the scope of the competence of the Supervisory Board is:
  • control of application of the Statute, Remuneration Tariff and other enactments and decisions of the bodies of Sokoj,
  • control of business operations of Sokoj,
  • control of the List of members of the current session of the Assembly,
  • giving opinions upon requests of other bodies of Sokoj, in accordance with the Statute of Sokoj,
  • interpretation of the Statute.

Article 35.
Supervisory Board may validly work and decide if more than half of total number of members is present.
Supervisory Board decides by the majority votes from total number of members of Supervisory Board.
Supervisory Board defines its work in detail by the Operating procedure of Supervisory Board.

Article 36.
Supervisory Board is responsible for its work to the Assembly.
President of the Supervisory Board submits Report about the work of the Supervisory Board at the regular Assembly meeting.

Article 37.
In order to carry out work from its competence more successfully, Supervisory Board may hire a professional authorized for auditing as well as other professionals who will perform inspection.

V AUTHORS COUNCIL

Article 38.
Authors Council is permanent working body of the Assembly of Sokoj which has controlling and regulatory function in reference to application of Distribution Rules.
Authors Council consists of 9 members, appointed by the Assembly; members of the Council among each other elect the president of the Authors Council.
Structure of Authors Council must adequately represent genres, so that it contains 3 authors from genre of artistic and jazz music and 6 authors from other genres.

Article 39.
Authors Council proposes Distribution Rules and its amendments, controls application of Distribution Rules and decides upon complaints of the authors in connection with the application of Distribution Rules.
Authors Council may perform professional work from its competence through smaller professional boards elected among its members.
Authors Council defines its work in detail by the Operating procedure of Authors Council.

Article 40.
Members of the Managing Board and Supervisory Board may not be appointed in Authors Council.
Managing Board and General Manager are obliged to regularly inform Authors Council about all relevant matters from its competence.

Article 41.
Authors Council is responsible for its work to the Assembly.
President of Authors Council submits Report about the work of the Authors Council at the regular Assembly meeting.

VI FINANCIAL RESOURCES AND OPERATIONS

Article 42.
Financial resources collected on the basis of remunerations from the use of authors works create a fund which is to be distributed to the authors.

Article 43.
Expenses incurred in carrying out activity of Sokoj are being deducted from the resources mentioned in the previous article.
The level of expenses incurred in carrying out activity is established by the Managing Board and it has to be in conformity with Financial plan of Sokoj for a certain business year.
The level of expenses may not exceed 30% of income in that business year, except under exceptional circumstances and upon the decision of the Assembly.
General Manager of Sokoj establishes the structure of the expenses.

Article 44.
According to the decision of the Managing Board and international agreements, from the collected remuneration for authors and right holders, upon deduction of administrative expenses for protection and taxes, the amount of 10% is being deducted for cultural and social purposes.
Mentioned financial resources create the separate Fund for cultural and social purposes.
Managing Board decides about the percentage of distribution of the resources from the mentioned Fund for each repartition year.
Decision about the distribution of resources intended for social purposes is made by Managing Board and the decision about distribution of resources intended for cultural purposes is made by the Assembly of Sokoj upon proposal of the Managing Board.

Article 45.
Sokoj provides financial resources for its activity from:
  • the financial resources acquired through the paid remunerations
  • income from the property
  • income from providing administrative and technical services to other organizations (in their name and for their account)
  • income from the activity by which is realized artistic, professional and social interest of right holders
  • extra income and other income in accordance with the law.

Article 46.
All resources mentioned in the previous article may be used only for financing the activity of Sokoj.

Article 47.
Financial operations of Sokoj are run by General Manager, in accordance with the law and the decisions of the Assembly and Managing Board.
General Manager is responsible for legal use of resources.

VII TRANSITIONAL AND FINAL PROVISIONS

Article 48.
Sokoj is a legal successor of the Union of Yugoslav Composers (SAKOJ), the Union of Yugoslav Composers' Organizations - Authors' Rights Protection Society (SOKOJ) and Sokoj - Organization for Protection of Music Authors' Rights.

Article 49.
In case of cessation, Sokoj will, as a receiver of property, fund domestic non-for-profit legal entity with the same or similar activity goal.

Article 50.
All general enactments of Sokoj must be harmonized with this Statute within 6 months from the day when Statute went into effect.

Article 51.
Supervisory Board interprets this Statute and its provisions.

Article 52.
This Statute goes into effect and will be applied from the eighth day of its publication.


In Belgrade on March 10, 2010.
Chairman of the Assembly,
Srdjan Hofman, sgnd.