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

Ownership (20 points)

Property

Owning

Companies

All Other Companies

Property

Owning

Companies

All Other Companies

Voting Rights

Exercising voting Rights in the enterprise in the hands of black people

5

3

25%+1 vote

25%+1 vote

Exercising voting Rights in the enterprise in the hands of black women

2

2

10%

10%

Economic interest

Economic interest of black people in enterprise

5

4

25%

25%

Economic interest of black women in enterprise

2

2

10%

10%

Economic interest of the following black natural persons in the enterprise:

1

1

2.5%

2.5%

Realisation points

Ownership fulfillment

1

1

No restriction for Property Owning companies

Refer to paragraph 10.1 of Code Series 100 of the Codes of Good Practice for all other Property entities

Net equity value

4

7

The following calculation applies to Property owning companies only:

year 1-3%

year 2-7%

year 3-10%

year 4-15%

year 5-19%

year 6-24%

year 7-30%

year 8-36%

year 9-43%

year 10-50%

For other property entities Refer to Annexure C paragraph 4 of Codes Series 100 of the Codes of Good Practice

Involvement in the ownership of the Enterprise of black new entrants

2

2

10%

10%

Bonus Points

Involvement in the ownership of the Enterprise of Black participants:

1

1

10%

10%

CONTROL (10 points)

Board participation

Exercisable Voting Rights of black Board members using the Adjusted Recognition for Gender

3

50%

Black Executive Directors using the Adjusted Recognition for Gender

2

50%

Top Management

Black Senior Top Management using the Adjusted Recognition for gender

3

40%

Black Other Top Management using the Adjusted Recognition for gender

2

40%

Bonus

Black Independent Non-Executive Board Member

1

40%

EMPLOYMENT EQUITY (15 points)

Disabled

Black disabled employees as a percentage of all employees using the Adjusted Recognition for Gender

2

3%

Senior Management

Black employees in Senior Management as % of all such employees using the Adjusted Recognition for Gender

5

60%

Middle Management

Black employees in middle management as a percentage of all employees using the Adjusted Recognition for Gender

4

75%

Junior Management

Black employees in junior management as a percentage of all employees using the Adjusted Recognition for Gender

4

80%

Bonus Points

Bonus point for meeting or exceeding the EAP targets in each category (Senior=1, Middle=1 & Junior=1 point)

3

Property brokers/estate agents

Black practitioners as % of total practitioners using Adjusted Recognition for Gender

7

75%

Black people in Management as % of total Management

7

50%

Black women in Management as % of total Management

1

15%

Bonus points

Black practitioners as % of total practitioners using Adjusted Recognition for Gender

1

80%

Black people in Management as % of total Management

1

60%

Black women in Management as % of total Management

1

20%

SKILLS DEVELOPMENT (15 points)

INDICATORS

WEIGHTING

COMPLIANCE TARGET

Skills Development Expenditure on Learning Programmes, specified in the Learning Programme Matrix for black employees as apercentage of Leviable Amount using the adjusted recognition for gender

6

3%

Skills Development Expenditure on Learning Programmes, specified in the Learning Programme Matrix for black employees with disabilities as a percentage of Leviable Amount using the adjusted recognition for gender

3

0.3%

Number of black employees participating in learnership or category B, C and D programme as a percentage of total employees using the adjusted recognition for gender

6

5%

PREFERENTIAL PROCUREMENT (20 points)

BEE Procurement Spend from all Suppliers based on the BEE Procurement Recognition Levels as a percentage of total measured procurement spend

10

70%

BEE Procurement Spend from Qualifying Small Enterprises or Exempted Micro-Enterprises based on the applicable BEE procurement recognition levels as a percentage of total measured procurement spend

2

15%

BEE Procurement Spend from any of the following Suppliers (regardless of their BEE procurement recognition Level) as a percentage of total measured procurement spend:

5

20%

(12%)

(8%)

% spend property services Enterprises (Level 1-4) of total property services spend

3

40%

ENTERPRISE DEVELOPMENT (10 points)

INDICATORS

WEIGHTING

COMPLIANCE TARGET

SOCIO-ECONOMIC DEVELOPMENT (2 points)

Average annual value of all socio-economic development contributions made by the measured entity as a percentage of the target

2

1%NPAT

ECONOMIC DEVELOPMENT (15 points)

Disposal of assets to B-BBEE enterprise (Level 1-3) as a % of total asset disposal (private) which are black owned

8

35%

Development Investment in under-resourced areas as a % of total annual investment

7

10%