TONO has become a cooperative

As of January 1, TONO is formally a cooperative. Cooperatives are characterized by being owned and managed by those who interact with, and directly benefit from, the company's activities. This is in line with TONO's practice as a cooperative.

The reason why TONO has now become a cooperative is the Storting's adoption of the Cooperatives Act in 2007. The act was intended to capture established cooperatives, as well as limited liability companies built on cooperative principles. A cooperative is the natural corporate form for TONO, considering the organization's activities and tasks. TONO began adapting its articles of association to the provisions of the Cooperatives Act as early as 2008. During the 2012 annual meeting, the remaining changes were adopted.

The transition to a cooperative form entails some changes for TONO's board. As of 2013, the annual meeting can freely elect board members within the board distribution: 2 from NOPA (Norwegian Association of Composers and Lyricists), 2 from NKF (Norwegian Composers' Association) and 2 from NMFF (Norwegian Music Publishers' Association), as well as 3 vacant positions. Previously, the positions of chairman and deputy chairman rotated among the group associations, but now they can be freely elected among all board members. Employees in TONO's administration will also be able to demand up to four board representatives from the 2013 annual meeting, not just one person with observer status, as was the case previously.

It is also new that members who have achieved voting rights and eligibility to stand for election to the board will now retain these rights throughout their period as a TONO member, regardless of income. When TONO was a cooperative, this right was lost in periods where income fell below 1/5 of the requirement that applied to obtaining voting rights and eligibility. Due to the transition from a cooperative to a cooperative enterprise, the term "shareholder" must be changed to "member", while all other rights holders for whom TONO manages the rights will still be called "right holders" in formal contexts. This does not entail any substantive changes, and is only a linguistic adaptation to the new regulations that TONO is bound by. In everyday speech, the employees in TONO's administration have always used the term "member" for everyone with whom we have a management contract, as we experience that this term encompasses most aspects of the connection and closeness that TONO has, and wants to have, to all composers, lyricists and music publishers that we work on behalf of. We will continue to do this, and it is normally only at annual meetings (voting rights and eligibility) that there will be a difference – as it has always been. TONO is a member of the association Samvirkesenteret, and on their website, www.samvirke.org you will find useful information about this form of enterprise. TONO's administration is also happy to assist with any questions. If so, call us on 22 05 72 00.