e24702_SN004 Translated from French 28 Article 110. Purpose. – Collective management societies may be established by owners of copyright and neighboring rights for the purpose of: 1. negotiating with users of the repertoires which they are responsible for managing; 2. collecting the relevant royalties and distributing them among their members; 3. financing social action for the benefit of their members; 4. organizing and financing cultural activities; 5. taking legal action to defend the interests for which they are responsible under their statutes, including the collective interests of their members. Chapter I. – Constitution Article 111. Form. – Collective management societies shall be constituted in the form of civil law societies. Article 112. Plurality of societies. – 1. Subject to the approval provided for in Article 117, a collective management society may be established for each repertoire of works protected by copyright, for performers, phonogram producers, videogram producers and publishers. Such societies may, for management purposes, establish joint societies among themselves. 2. As an exception to the previous paragraph, a single society shall be established for the purpose of managing all the rights recognized by the present Law for a period of at least five years from the date of its entry into force. Article 113. Society members. – The members shall be authors, performers, phonogram or videogram producers and publishers, or their successors in title. Article 114. Optional nature of collective management. – Unless otherwise provided by law, owners of copyright and neighboring rights shall not be required to belong to a collective management society. Provided that they give sufficient notice, they may withdraw from the society after joining it. Article 115. Legal nature of transfer. – The management of rights may be entrusted to a collective management society by appointing the society as agent or by assignment. Article 116. Extent of transfer. – Membership of a society may be subject to the transfer of all economic rights that shall reasonably be deemed essential to effective collective management. Article 117. Approval of the society. – 1. The societies referred to in Article 112 shall be approved by decree on the basis of a proposal of the Minister of Culture. 2. Approval shall be given subject to consideration of: (a) the professional qualifications of the directors of the society; (b) the human and material resources which the society is able to deploy to ensure the exercise of rights and the exploitation of its repertoire; (c) the equitable representation of rights owners among the members and within the management authorities;