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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

Statement 100: The General Principles for Measuring Ownership

Key measurement principles

3.11 Section 21 companies and companies limited by guarantee

 

3.11 SECTION 21 COMPANIES AND COMPANIES LIMITED BY GUARANTEE

 

3.11.1 A Measured Entity may elect to include or exclude Section 21 companies or companies limited by guarantee for the purposes of measuring Ownership in terms of this statement;

 

3.11.2 A Section 21 company or company limited by guarantee that houses a Broad-Based Ownership Scheme or an Employee Ownership Scheme is subject to the provisions governing those types of schemes and not to this paragraph;

 

3.11.3 When a Measured Entity elects to exclude such companies, it can do so by excluding up to 40% of the level of their Ownership completely from the determination of its compliance with the Ownership target;

 

3.11.4 A Measured Entity electing not to exclude Section 21 companies or companies limited by guarantee when it is entitled to do so, may either treat all of that Ownership as non-Black or obtain a competent person's report estimating the extent of Black rights of Ownership measurable in the Measured Entity and originating from those Section 21 companies or companies limited by guarantee; and

 

3.11.5 Black participants in a Section 21 Company or a company limited by guarantee holding rights of Ownership in a Measured Entity may contribute:

 

3.11.6 a maximum of 40% of the total points on the Ownership scorecard of the Measured Entity if they meet the qualification criteria for Broad-Based Ownership Schemes and Employee Share Ownership Programmes set out in Annexe 100(B) and Annexe 100 (C) respectively.

 

3.11.7 100% of the total points on the Ownership scorecard of the Measured Entity if they meet the additional qualification criteria set out for Broad-Based Ownership Schemes and Employee Share Ownership Programmes in Annexe 100(B) and Annexe 100 (C) respectively.