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

3. Key measurement principles

3.1 General principles

Purchase

3.1.1

An Enterprise receives points for participation by Black People in its rights of ownership, using the ownership scorecard in table 2a or 2b of Code Series FS100 Statement 100. Black People may hold their rights of ownership in a Measured Entity as direct participants or as participants through some form of business such as:

3.1.1.1

A Company with shares;

3.1.1.2

A Close Corporation;

3.1.1.3

A Co-operative;

3.1.1.4

Any form of juristic person recognised under South African law;

3.1.1.5

A Partnership or other association of natural persons;

3.1.1.6

A Broad-Based Ownership Scheme;

3.1.1.7

An Employee Ownership Scheme; and

3.1.1.8

A Trust (including a Family Trust, will qualify provided that the Trust deed stipulates that the beneficiaries must be Black South Africans and that at least 85% of the proceeds of the Trust accrues to the beneficiaries).

3.1.2

Any Measured Entity (Foreign or Domestic) may also receive points under the Ownership Scorecard in table 2a or 2b of Code Series FS100 Statement 100, via Equity Equivalent Contributions. Equity Equivalent Contributions are dealt with in detail under Code series FS100, Statement 103.

3.1.3

Any Measured Entity may also receive points under the Ownership Scorecard in table 2a or 2b of Code Series FS100 Statement 100 via Sales of Assets. Sales of Assets are dealt with in detail under Code series FS100, Statement 102.