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

Industry Charters

Financial Services Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 100: The General Principles for Measuring Ownership

2. The Ownership Scorecard

Purchase

Table 2a represents the indicators and method for calculating a score for ownership for local measured entities:

Table 2a Ownership

Points

Targets

2.1	Voting Rights of Black People

25% + 1 Vote

2.2	Voting Rights of Black Women

10% + 1 vote

2.3	Economic Interest of Black People

25% + 1 Share

2.4	Economic Interest of Black Women

10% + 1 share

2.5	Economic Interest of Black Designated Groups, Black Participants in Employee Share Ownership Schemes, Black Participants in Broad-Based Ownership Schemes and / or Black Participants in Co-ops

2.5%

Ownership Fulfilment

2.6	Net Equity Value (Formula A and B as per para. 4 of Annexe 100(C)

2.7	Direct or Indirect Ownership in Excess of 15%

10%

Total

Bonus Points

2.8	Ownership by Black New Entrants

10%

2.9	Ownership by ESOPs and Co-ops

10%

Total Including Bonus Points

For 2.7, the target will apply to economic interest as a result of Direct or Indirect B-BBEE ownership in excess of 15%. To avoid any doubt, Ownership and/or Equity Equivalent contributions and/or Asset Sales claimed will count under 2.7.

If a measured entity wishes to claim Ownership credits for Indirect Ownership, it must provide a competent person's report that has estimated the value of B-BBEE ownership held through indirect ownership.

Table 2b represents the indicators and method for calculating a score for Ownership for measured entities that are local branches of foreign banks:

Table 2b

Ownership

Points

Targets

Notes

2.1	Additional BEE Transaction Financing or other qualifying Equity Equivalent contributions

25%

Target is equal to 25% of the value of the measured entity as at 31 December 2010

Bonus Points

2.2	Funding of BEE Transactions and/or other Equity Equivalent contributions in the Financial Sector

100% of 25%

3 bonus points are available for contribution within the Financial Sector