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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 Empowerment

Annexe 100 (D)

4. Rules for Trusts

 

4. Rules for Trusts

 

4.1 The qualification criteria for the recognition of Trusts are as follows:

 

4.1.1 the trust deed must define the beneficiaries and the proportion of their entitlement to receive distributions;

 

4.1.2 a written record of the names of the beneficiaries or the use of a defined class of natural person satisfies the requirement for identification;

 

4.1.3 a written record of fixed percentages of entitlement or the use of a formula for calculating entitlement satisfies the need for defining proportion of benefit;

 

4.1.4 the trustees must have no discretion on the above mentioned terms; and

 

4.1.5 on winding-up or termination of the trust, all accumulated Economic Interest must be transferred to the beneficiaries or to an entity representing the interest of the participants or class of beneficiaries.