Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Rail Sub-Sector Code for B-BBEE

3. Indicators of Empowerment

3.2 Ownership

3.2.2 Private Industry Commits to:

Purchase

3.2.2.1

Pro-actively seek opportunities to broaden the ownership base of their enterprises and ensure that a minimum of 25% +1 vote is the hands of black people;

3.2.2.2

Ensure that a minimum of 25% of economic interest accrues to black people;

3.2.2.3

Ensure that a minimum of least 10% voting rights is in the hands of black women;

3.2.2.4

Ensure that 10% of economic interest is in the hands of black women;

3.2.2.5

Ensure that 3% is earmarked for black designated groups (including black people living with disabilities) and/or black participants in Employee Ownership Schemes, Broad based Ownership Schemes and Co-operatives within five years. This refers to Black Natural People;

3.2.2.6

If the ownership by black people living with disability is through a Non profit organisation or Public benefit organisation, the organisation will require to evidence that 85% of the beneficiaries are black people living with disability as defined in the Employment Equity Act in order to realise maximum bonus points; and

3.2.2.7

Qualifying Small Enterprises (QSEs) as defined in this Sub-Sector Code will commit to:

3.2.2.7.1

Increasing the ownership base of their companies and ensure that a minimum of 25% of economic interest is in the hands of black people;

3.2.2.7.2

25%+1 vote voting rights, or equivalent thereof, are in black hands; and

3.2.2.7.3

Ensure that the net economic interest of the black equity participants is 100% of their acquired share of the business within 5 years. If this is achieved, it will be deemed that Ownership Fulfilment has been achieved for both bigger entities (i.e. companies with turnover above R35 million) and Qualifying Small Enterprises (i.e. companies within R5 million and R35 million turnover threshold).