Medicines and Related Substances Act, 1965
R 385
Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentStatement 100 : The General Principles for Measuring OwnershipAnnexe 100(C) |
| 1) | Measurement of Voting Rights |
| 1.1) | The calculation of the ownership indicators provided for in paragraphs 2.1.1 and 2.1.2 is as follows: |
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A–BxD C
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Where:
A is the recognisable percentage of black Participant claim to Economic Interest in the Enterprise.
B is the percentage that Economic interest to which Participants who fall within the category of black people in that Enterprise so holds to all Economic interest to which all Participants of that Enterprise.
C is the percentage compilation Target for Economic Interest for the applicable measured ownership indicator in paragraph 2.2.
D is the Weighting points allocated to the applicable measured ownership indicator in paragraph 2.2.
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| 1.2) | If an Enterprise gains a score in the formula above that is more than the Weighting points in paragraph 2.1, that Enterprise will only receive the Weighting points. |
| 2) | Measurement of Economic Interest |
| 2.1) | The calculation of the ownership indicators provided for in paragraphs 2.2.1 to 2.2.3 is as follows: |
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A–BxD C
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Where:
A is the recognisable percentage of black Participant claim to Economic Interest in the Enterprise.
B is the percentage that Economic interest to which Participants who fall within the category of black people in that Enterprise so holds to all Economic interest to which all Participants of that Enterprise.
C is the percentage compilation Target for Economic Interest for the applicable measured ownership indicator in paragraph 2.2.
D is the Weighting points allocated to the applicable measured ownership indicator in paragraph 2.2.
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| 2.2) | If an Enterprise gains a score in the formula above, that is more than the Weighting points in paragraph 2.2, that Enterprise will only receive the Weighting points. |
| 3) | Calculation of Deemed Net Value |
In calculating the "Deemed Net Value" referred to in paragraph 4 below, the following formula applies:
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A=B-C D
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Where:
A is the Deemed Net Value.
B for the purposes of paragraph 4 below is the value of the Equity Instruments relevant to the calculation, determined on the date of measurement.
B for the purposes of paragraph 5 below is the value of the Equity Instruments relevant to the calculation determined on the date of sale or loss.
C for the purposes of paragraph 4 below is the carrying value of any acquisition debts of the relevant black Participants on the date of measurement.
C for the purposes of paragraph 5 below is the carrying value of any acquisition debts of the relevant black Participants on the dale of sale or loss.
D for the purposes of paragraph 4 and 5 below is the value of the Measured Entity on the date of measurement.
D for the purpose of the exclusion principle, is the value of the measurable portion of the Measured Entity on the date of measurement.
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| 4) | Net Value |
| 4.1) | The "Net Value" points in paragraph 2.3.2 is the lower result of Formula A and Formula B below: |
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Formula A
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Where:
A is the score under paragraph 2.3.2.
B is the Deemed Net Value for all black Participants in the Measured Entity determined using Formula 3.
C is the time-based graduation factor or the Economic Interest compliance target outlined below:
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Formula B
A=B x7 C |
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Where:
A is the score under paragraph 2.3.2.
B is the percentage Economic interest in the Measured Entity of black Participants.
C is the target for the partnership indicator in paragraph 2.2.1.
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| 4.2) | If an Enterprise gains a score in paragraph 4.1 that is more than the Weighting points in paragraph 2.3.2, that Enterprise will only receive the Weighting points. |
| 4.3) | Ownership Fulfilment occurs: |
| 4.3.1) | on the release of all black Participants in a Measured Entity from all third-party rights; or |
| 4.3.2) | when black Participants have never been subject to any third-party. |
| 4.4) | A minimum score of 7 points for Current Equity Interest is a requirement for the award of the Ownership Fulfilment point. |
| 5) | Calculation of the Recognition of Ownership after the Sale or Loss of Shares by Black Participants: |
The calculations in paragraphs 3.5.1 and 3.5.3 use the following formula:
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A = B x C x D
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Where:
A is the percentage of rights of ownership that survive the sale of an Equity Instrument by a black Participant in paragraph 3.5.
B is the percentage of rights of ownership for each of indicators in the ownership scorecard that were attributable to the black Participant immediately before his or her sale or loss.
C is the Net Value percentage provided for in paragraph 3 above undertaken for the Equity Instruments sold or lost by the black Participant on the dates of the sale or loss.The value of the Enterprises is measurable at the date of measurement.
D is the most recently determined BEE Recognition Level of the Measured Entity (which must be less than 1 year old) based on its Generic Scorecard result for all Elements other than ownership determined using statement 000.
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| 6) | The Bonus Points |
| 6.1) | The calculation of the bonus points uses the following formula: |
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A= B xD x E C 25
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Where:
A is the bonus points awarded in paragraph 2.4.1 and 2.4.2.
B is the percentage that Economic interest to which Participants who fall within the category of black people in that Enterprise holds to the total of all Economic interest of that Enterprise.
C is the percentage compilation Target for Economic Interest for the measured ownership indicator in paragraph 2.4.
D is the percentage of the Economic Interest in the Measured Entity of black people up to a maximum of 25%.
E is the Weighting points allocated to the applicable measured ownership indicator in paragraph 2.2.
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