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

Amended Codes of Good Practice (2013)

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

Annexe 100 (C)

2.3 Rules for Employee Share Ownership Programmes
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2.3Rules for Employee Share Ownership Programmes

 

2.4The following rules apply to Employee Share Ownership Programmes;

 

2.4.1the constitution of the scheme must define the Participants and the proportion of their claim to receive distributions;

 

2.4.2a written record of the name of the Participants or the use of a defined class of natural person satisfies the requirement for identification;

 

2.4.3a written record of fixed percentages of claim or the use of a formula for calculating claims satisfies the need for defining proportion of benefit; and

 

2.4.4the fiduciaries of the scheme must have no discretion on the above mentioned terms; and

 

2.5The Participants must take part in:

 

2.5.1appointing at least 50% of the fiduciaries of the scheme;

 

2.5.2managing the scheme at a level similar to the management role of shareholders in a company having shareholding;

 

2.5.3the constitution, or other relevant statutory documents, of the scheme must be available, on request, to any Participant in an official language in which that person is familiar;

 

2.5.4the scheme fiduciaries must present the financial reports of the scheme to Participants yearly at an annual general meeting of the scheme; and

 

2.5.5all accumulated Economic Interest of the scheme is payable to the Participants at the earlier of a date or event specified in the scheme constitution or on the termination or winding-up of the scheme.