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 103 : Recognition of Equity equivalents for multinationals5. Examples of Equity Equivalent Programmes |
| 5.1) | Enterprise creation: |
| 5.1.1) | If the equity equivalent contribution of a Multinational involves the creation of a new Enterprise: |
| 5.1.1.1) | the new Enterprise must qualify as a Value-Adding Enterprise; |
| 5.1.1.2) | the creation of the new Enterprise must comply with the requirements for a Qualifying Transaction as defined in statement 102; |
| 5.1.1.3) | the creation of the new Enterprise cannot contribute to the Multinational's score under Code series 600; and |
| 5.1.1.4) | the equity equivalent contribution must involve the provision of interest free loans, No-Gain Grants or Human Capital Investments to the new Enterprise equivalent in value to 50% of the new Enterprise's projected operational costs for the first 3 years following its establishment. |
| 5.2) | Investment in social advancement: |
| 5.2.1) | An equity equivalent contribution of a Multinational that involves enhanced Socio-Economic Development. |
| 5.2.1.1) | must comply fully with Code series 700; and |
| 5.2.1.2) | cannot form part of the Multinational's score under Code series 700. |