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

Industry Charters

Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 103: The Recognition of Equity Equivalents (Annexe 102 (A))

4. Measurement of Equity Equivalent Contributions on the Ownership Scorecard

Purchase

4.1	The ownership score of a Multinational participating in an Equity Equivalent Programme is calculated in terms of paragraph 4.3. A Multinational participating in an Equity Equivalent Programme cannot receive any points for ownership under any statement in Code Series 100 other than this statement.

4.2	Contributions to Equity Equivalent Programmes are measured as actual contributions made using the general principle set out in code series 600 and 700 against any of the following targets:

4.2.1

30% of the value of the South African operations of the entity apply for the recognition of Equity Equivalents determined using a Standard Valuation; or

4.2.2

30% of total net Profit after tax of the South African operations of the entity applying for recognition of equity Equivalents; or

4.2.3

4% of Total Revenue from its South African operations annually over the period of continued measurement

4.3	The Ownership Score under an Equity Equivalent Programme using either of the targets in paragraphs 4.2 must be calculated in terms of Annexe 103(A).