Liquidating SARRAL: what composers need to know
Updated March 17 2010
In a judgement delivered at the Johannesburg High Court on Friday 6 November 2009, the judge ruled that SARRAL was to be wound up.
In the judge's words (the "respondent" is SARRAL):
- "In consequence of these findings and in the light of the evidence to which I have referred it is clear that the respondent is factually insolvent. Its legitimate revenue or income and reserves are insufficient to pay the royalty liability due to its members. It presently only distributes between 50 to 60% of the royalties that it collects.
By wrongly appropriating royalties which properly belong to members the board of directors and controllers of the respondent continue to operate in contravention of the respondent's constitutive documents. Such conduct can properly be characterised as a systematic mismanagement of the affairs of the respondent. Not to govern the respondent in accordance with its constitutive documents is a form of mismanagement.
In the present matter the controllers of the company have wrongly dealt with monies in the form of royalties that properly belong to its members and have kept the majority of members in ignorance of its parlous financial position. The majority of members do not have a proper insight into the interpretation of the constitutive documents"
SARRAL has therefore wrongly used around 50% of composers' royalties over the last 6 years. It is logical that all composers who had works recorded over this period have been underpaid (if they have been paid at all), and would have a claim.
The first part of the process is now complete and a liquidator (Mr. Norman Klein of Westrust) has been appointed.
All composers who believe they have legitimate claims against SARRAL will have the opportunity to complete claim forms and provide proof in the form of supporting documents of their claim .
You may address your queries in this regard to:
WESTRUST
41 Central Street
Houghton
2198
email: MCowin[AT]westrust.co.za
fax: 011 728 3555
telephone: 011 728 3222
This is really the last chance to get the money which is owed to you by SARRAL - so do it NOW.
