Williams and other stars earn royalties from radio airplay

Blur, Travis and Tom Jones were also affected by the incident involving the Association of United Recording Artists which issues payment for radio airplay.

The London-based firm said it dismissed director Peter Horrey after discovering "significant financial irregularities".

A High Court injunction has been obtained freezing Mr Horrey's assets.

The company's chairman, Stephen King, said at least £700,000 had been "misappropriated".

Irregularities

He said Mr Horrey had not contested the High Court injunction. Mr Horrey, from Stansted, Essex, was unavailable for comment.

The irregularities were discovered in an audit taken earlier this year, the company said.

"We do not yet have a final figure for the money that has gone missing," said Mr King. "We have called in specialist auditors to search through our accounts back to 1999, but £700,000 is our estimate so far.

"We have written to all our members informing them of the situation and they have been supportive of us. We are taking action to recover the money."

The Association of United Recording Artists (Aura) is responsible for collecting and distributing £2 million a year in royalties to recording artists and producers.