Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentStatement 102 : Recognition in the sale of assets3. Key Measurement Principles |
| 3.1) | General principles: |
| 3.1.1) | A Seller that has concluded a transaction involving a sale of asset, Equity Instrument or business with an Associated Enterprise may claim the benefits provided for in this statement in its own Ownership Scorecard. |
| 3.1.2) | Where a Seller has claimed benefit in terms of the Ownership scorecard for the Sale of Asset, Equity Instrument or Business it may not claim benefits under the Enterprise Development Element. |
| 3.2) | Qualification Criteria: |
| 3.2.1) | For Ownership points to be recognised the transaction: |
| 3.2.1.1) | must result in the creation of sustainable businesses or business opportunities in the hands of black people; and |
| 3.2.1.2) | result in the transfer of specialised skills or productive capacity to black people. |
| 3.2.2) | A Sale of Asset, Equity Instrument and Business must involve a separate Associated Enterprise which has: |
| 3.2.2.1) | no unreasonable limitations as to its clients or customers; and |
| 3.2.2.2) | clients, customers or suppliers other than the Seller. |
| 3.2.3) | Any operational outsourcing arrangements between the Seller and the Associated Enterprise must be negotiated at arms-length on a fair and reasonable basis. |
| 3.2.4) | The following transactions do not constitute Qualifying Transactions: |
| 3.2.4.1) | transfers of business rights by way of license, lease or other similar legal arrangements not conferring unrestricted ownership; and |
| 3.2.4.2) | sales of franchises by franchisors to franchisees, but includes sales of franchises from franchisees to other franchisees or to new franchisees. |