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 EmpowermentAnnexe 100 (D)4. Rules for Trusts |
| 4. | Rules for Trusts |
| 4.1 | The qualification criteria for the recognition of Trusts are as follows: |
| 4.1.1 | the trust deed must define the beneficiaries and the proportion of their entitlement to receive distributions; |
| 4.1.2 | a written record of the names of the beneficiaries or the use of a defined class of natural person satisfies the requirement for identification; |
| 4.1.3 | a written record of fixed percentages of entitlement or the use of a formula for calculating entitlement satisfies the need for defining proportion of benefit; |
| 4.1.4 | the trustees must have no discretion on the above mentioned terms; and |
| 4.1.5 | on winding-up or termination of the trust, all accumulated Economic Interest must be transferred to the beneficiaries or to an entity representing the interest of the participants or class of beneficiaries. |