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The Collective Management of Copyright (EU Directive) Regulations 2016

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This is the original version (as it was originally made).

Collective management organisations: management

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9.—(1) A collective management organisation must ensure that persons who manage its business do so in a sound, prudent and appropriate manner, using sound administrative and accounting procedures and internal control mechanisms.

(2) A collective management organisation must put in place and apply procedures (see paragraph (3))—

(a)to avoid conflicts of interest; and

(b)where such conflicts cannot be avoided, to identify, manage, monitor and disclose actual or potential conflicts of interest in such a way as to prevent them from adversely affecting the collective interests of the right holders whom the organisation represents.

(3) The procedures referred to in paragraph (2) include an annual individual statement by each of the persons referred to in paragraph (1) to the general assembly of members, containing the following information—

(a)any interests in the collective management organisation;

(b)any remuneration received in the preceding financial year from the collective management organisation, including in the form of pension schemes, benefits in kind and other types of benefits;

(c)any amount received in the preceding financial year as a right holder from the collective management organisation; and

(d)a declaration concerning any actual or potential conflict between—

(i)any personal interests and those of the collective management organisation; and

(ii)any obligations owed to the collective management organisation and any duty owed to any other person.

(4) A collective management organisation must ensure that its staff training procedures for employees, agents and representatives include appropriate training about conduct that complies with its obligations under these Regulations (but see paragraph (5)).

(5) Paragraph (4) does not apply where the collective management organisation is a business with fewer than ten employees and which has a turnover or balance sheet of less than 2 million euros per annum.

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