Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Sector Charter on Black Economic EmpowermentInterpretationInterpretation 2.30 to 2.35 |
| 2.30 | Management |
| 2.30.1 | Management is divided into senior, middle and junior levels, and |
| • | Senior management means all employees with a package (excluding bonuses) In respect of which the cost to the employer is R450,000 per annum or more, but excludes all employees who fall within the definition of executive management; |
| • | Middle management means all employees with a package (excluding bonuses) in respect of which the cost to the employer is between R250,000 and R450,000 per annum; |
| • | Junior management means all employees with a package (excluding bonuses) in respect of which the cost to the employer is between R150,000 and R250,000 per annum. |
| 2.30.2 | If the bonus is in excess of 50% of total remuneration then 50% of the bonus will be included as part of the package. |
| 2.30.3 | The salary bands will be increased in line with the consumer price index ("CPIX") on the 1st of January each year commencing on 1st January 2004. |
| 2.31 | Procurement means all expenditure to acquire goods and or services including capital expenditure, but excluding |
| • | broker commissions; |
| • | reinsurance premiums; |
| • | commissions paid to insurance intermediaries; |
| • | property and rental purchases (although property management is specifically included); |
| • | expenditure classes covered elsewhere in the charter e.g. salaries and wages. (Contract staff are regarded for this purpose as own staff and are excluded); |
| • | procurement spending where there is a natural monopoly; |
| • | any items of procurement where the supplier is imposed in terms of a global policy for technical (but specifically not commercial) reasons; |
| • | inter-entity charges for services rendered by other members of the group; |
| • | social investment expenditure and donations; and |
| • | all V.A.T payable. |
| 2.32 | Regulation or regulate when used in this charter shall have a common law or economic meaning depending on the context in which it is used. |
| 2.33 | Sound business practice means business practice which is conducive to the establishment, maintenance and promotion of: |
| • | domestic and international confidence in the financial sector; |
| • | best international practice and prudential and other regulations relating to the custody and investment of the nation's savings and the acceptance of risk; |
| • | the right to underwrite in both the long and short-term insurance industries; |
| • | sustainable sources of finance, which take cognisance of the different resources available; |
| • | level playing fields and competition between the different sub-sectors of the financial sector, and hence the avoidance of arbitrage between the sub-sectors; and |
| • | BEE transactions taking place on a willing buyer and a willing seller basis. |
| 2.34 | Targeted Investment means debt financing of, or other form of credit extension to, or equity investment in South African projects in areas where gaps or backlogs in economic development and job creation have not been adequately addressed by financial institutions. It specifically means financing of or investment in: |
| 2.34.1 | transformational infrastructure projects that support economic development in underdeveloped areas and contribute towards equitable access to economic resources. Such infrastructure projects could be in the following sectors- |
| ➢ | transport; |
| ➢ | telecommunications; |
| ➢ | water, waste water and solid waste; |
| ➢ | energy; |
| ➢ | social infrastructure such as health, education, and correctional services facilities; and |
| ➢ | municipal infrastructure and services. |
| 2.34.2 | agricultural development involving integrated support for resource-poor farmers, through enabling access to and the sustainable use of resources. |
| 2.34.3 | low-income housing for households with a stable income in excess of R1,500 per month and less than R7,500 per month. This income band will be increased in line with the CPIX on the 1st of January each year commencing on 1 January 2004. |
| 2.34.4 | Black SMEs. |
| 2.35 | All references to a year mean 31 December of that year (e.g. 2008 means 31 December 2008). |