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

Codes of Good Practice on Black Economic Empowerment

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

Statement 100 : The General Principles for Measuring Ownership

8. Options and share warrants
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8.1)Exercisable voting rights and Economic interest will be recognised where a Participant holds an instrument granting the holder the right to acquire an Equity Instrument or part thereof at a future date. If the following requirements are met:

 

8.1.1)The Exercisable Voting Rights attached to that instrument are irrevocably transferred to the holder for the option period and are exercisable by the holder before acquiring the Equity Instrument.

 

8.1.2)The Value of any Economic Interest is irrevocably transferred for the option period and paid to the holder of that instrument before the exercise of that right.

 

8.1.3)The value of an instrument must be determined by using a Standard valuation method for calculating the Net value.