Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003) Industry Charters Chartered Accountancy Charter Appendices Appendix 1: Interpretations (continued 8)

 

'Start-up Enterprise'*

means a recently formed or incorporated Entity that has been in operation for less than one year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise.

 

'Strategy Document'*

means the document entitled 'South Africa's Economic Transformation -A strategy for Broad-Based Black Economic Empowerment' published by the Department of Trade and Industry in March 2003, as amended or substituted in terms of section 11 of the Act.

 

'Subsidiary'*

has the meaning defined in section 1(3) of the Companies Act.

 

'Superior Contributor to B-BBEE'*

is a Level One to Level Four Contributor to B-BBEE.

 

'Supplier'*

means any supplier or service provider to a Measured Entity if any portion of the supply or service provision within the definition of Total Measured Procurement Spend.

 

'Target'*

means the targets for the various Elements in the Generic, QSE and the CA sector scorecard.

 

'The Act'*

means the Broad-Based Black Economic Empowerment Act, 2003 (Act 53 of 2003).

 

'The Codes'*

mean the Codes of Good Practice including all the statements as issued in terms of section 9 of the Act.

 

'The Generic Scorecard'*

means the balanced B-BBEE scorecard as contained in statement 100.

 

'The PFMA'*

means the Public Finance Management Act, 1 of 1999, as amended.

 

'The QSE Scorecard'*

means the QSE scorecard referred to in statement 800.

 

'Third Party Rights'*

mean third party legal or commercial rights that restrict, withhold or defer any benefit associated with ownership of any Equity instrument. Third party rights include only those rights—

 

'Top Manager'*

means the employees of a Measured Entity who hold rights of ownership, serve on the Board, undertake the day to day management, have overall responsibility for the overall financial management and are actively involved in developing and implementing the overall strategy of the Measured Entity.

 

'Total Labour Cost'*

means the total amount of remuneration paid by an Entity to its employees determined using section 3(4) of the Skills Development Levies Act of 1999 and the Forth Schedule of the Income Tax Act of 1962.

 

'Total Revenue'*

means the total income of an Entity from its operations as determined under South African Generally Accepted Accounting Practice.

 

'Training Inside Public Practice (TIPP)'

means training that takes place at a registered training office in public practice or the office of the Auditor-general that is approved and registered with SAICA as an office where prospective Chartered Accountants may be trained.

 

'Training Outside Public Practice (TOPP)'

means training that takes place at a training organisation in commerce and industry or public practice or the public sector that is approved and registered with SAICA as an office where prospective Chartered Accountants may be trained.

 

'Transformational Charters'*

means the sectoral transformation charters referred to in section 12 of the Act.

 

'Turnover'

means the revenue of the entity which refers only to income that arises in the course of the ordinary activities of the entity and includes fees from rendering services and royalties.

 

'Uncertified Learning Programme'*

means any Learning Programme of the Measured Entity that is not a certified Learning Programme.

 

'Value-adding Enterprise'*

means an Entity registered as a vendor under the Value Added Tax of 1991, whose Net Profit Before Tax summed with its Total Labour Cost exceeds 25% of the value of its Total Revenue.

 

'Voting Right'*

means a Voting Right attaching to an Equity Instrument owned by or held for a Participant measured using the Flow Through Principle or the Control Principle.

 

'Weighting'*

means the Weightings applied to various Elements in the Generic Scorecard.

 

'Workplace Skills Plan'*

means the plan of a Measured Entity approved by the relevant SETA.