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

Statement 100: The General Principles for Measuring Ownership

Key measurement principles

3.11 Section 21 companies and companies limited by guarantee
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3.11SECTION 21 COMPANIES AND COMPANIES LIMITED BY GUARANTEE

 

3.11.1A Measured Entity may elect to include or exclude Section 21 companies or companies limited by guarantee for the purposes of measuring Ownership in terms of this statement;

 

3.11.2A Section 21 company or company limited by guarantee that houses a Broad-Based Ownership Scheme or an Employee Ownership Scheme is subject to the provisions governing those types of schemes and not to this paragraph;

 

3.11.3When a Measured Entity elects to exclude such companies, it can do so by excluding up to 40% of the level of their Ownership completely from the determination of its compliance with the Ownership target;

 

3.11.4A Measured Entity electing not to exclude Section 21 companies or companies limited by guarantee when it is entitled to do so, may either treat all of that Ownership as non-Black or obtain a competent person's report estimating the extent of Black rights of Ownership measurable in the Measured Entity and originating from those Section 21 companies or companies limited by guarantee; and

 

3.11.5Black participants in a Section 21 Company or a company limited by guarantee holding rights of Ownership in a Measured Entity may contribute:

 

3.11.6a maximum of 40% of the total points on the Ownership scorecard of the Measured Entity if they meet the qualification criteria for Broad-Based Ownership Schemes and Employee Share Ownership Programmes set out in Annexe 100(B) and Annexe 100 (C) respectively.

 

3.11.7100% of the total points on the Ownership scorecard of the Measured Entity if they meet the additional qualification criteria set out for Broad-Based Ownership Schemes and Employee Share Ownership Programmes in Annexe 100(B) and Annexe 100 (C) respectively.