Performance rights organization, The South African Recording Rights Association Limited (SARRAL), is to be wound up with immediate effect. According to the information we received, the ruling was issued at the Johannesburg High Court on Friday, 06 November 2009.
SARRAL had been fighting a long legal battle with renowned composer Colin Shapiro, who accused the organization of wrongfully appropriating royalty money in a bid to counter its financial problems.
SARRAL was factually insolvent many years ago and changed their accounting policy as a response to the liquidation action, according to investigations.
The judge ruled that SARRAL, as an agent had no right to use royalties as income and that it has to immediately close shop.
SARRAL's board and controllers conducted "systematic mismanagement" of the company and its accounting policy was in conflict with its constitutive documents, said the judge.
Investigations further revealed that SARRAL's financial statements from 2003 onwards mis-state the affairs of the company, treating musicians’ royalties as income.
However, a source from SARRAL, who requested to be anonymous, says while it is correct that the judge ruled against SARRAL , "nothing official has been issued telling SARRAL that it will be wound up"
| Company: | The South African Recording Rights Association Limited |
| Organization: | Johannesburg High Court |
| Person: | Colin Shapiro |
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