Medicines and Related Substances Act, 1965
R 385
Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Amended Codes of Good Practice (2013)Amended Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentStatement 100: The General Principles for Measuring OwnershipKey measurement principles3.8 Recognition of Ownership After the Sale or Loss of Shares by Black Participants |
3.8 | Recognition of Ownership After the Sale or Loss of Shares by Black Participants |
3.8.1 | A Measured Entity is allowed to recognise a portion of Black Ownership after a Black participant has exited through the sale or loss of shares subject to the following criteria: |
3.8.1.1 | the Black participant has held shares for a minimum period of 3 years; |
3.8.1.2 | net value based on the Time Based Graduation Factor as per annexe 100 'E' must have been created in the hands of Black people; and |
3.8.1.3 | transformation has taken place within the Measured Entity using the B-BBEE Recognition Level from the period of entry of black participants to the exiting period. |
3.8.2 | Black participation arising from continued recognition of Black Ownership cannot contribute more than 40% of the score on the Ownership scorecard. |
3.8.3 | In the case of a sale or loss of shares by the Black participant, the following additional rules apply: |
3.8.3.1 | a written tripartite agreement between the Measured Entity, the Black participant and a lender must record the loan or security arrangement, unless the Measured Entity is the lender; and |
3.8.3.2 | the period over which the continued recognition points are allocated or recognised after sale or loss of shares will not exceed the period over which the shares were held. |
3.8.4 | The Ownership points under this paragraph that are attributable to the Measured Entity will be calculated by multiplying the following elements: |
3.8.4.1 | the value created in the hands of Black participants as a percentage of the total value of the Black participants' shareholding in the Measured Entity at the date of sale or loss of shares; |
3.8.4.2 | the B-BBEE status of the Measured Entity based on the balanced scorecard at the Date of Measurement; and |
3.8.4.3 | the Ownership points that were attributable to the Measured Entity on the date of sale or loss shares. |