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

Amended Codes of Good Practice (2017)

Amended Code Series CSC100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC100: The General Principles for Measuring Ownership

Annexe CSC100 (C)

1. Rules for Employee Share Ownership Programmes
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1.1 The following rules apply to Employee Share Ownership Programmes;

 

1.1.1 The constitution of the scheme must define the Participants and the proportion of their claim to receive distributions;
1.1.1.1 A WRITTEN RECORD of the name of the Participants or the use of a defined class of natural person satisfies the requirement for identification;
1.1.1.2 A WRITTEN RECORD of fixed percentages of claim or the use of a formula for calculating claims satisfies the need for defining proportion of benefit; and

 

1.1.2 The fiduciaries of the scheme must have no discretion on the above mentioned terms of the constitution; and

 

1.1.3 The Participants must take part in:
1.1.3.1 Appointing at least 50% of the fiduciaries of the scheme;
1.1.3.2 Managing the scheme at a level similar to the management role of shareholders in a company having shareholding;

 

1.1.4 The constitution, or other relevant statutory documents, of the scheme must be made available, on request, to any Participant in an official language in which that person is familiar;

 

1.1.5 The scheme fiduciaries must present the financial reports of the scheme to Participants yearly at an annual general meeting of the scheme; and

 

1.1.6 All accumulated Economic Interest of the scheme is payable to the Participants at the earlier of a date or event specified in the scheme constitution or on the termination or winding-up of the scheme.

 

1.1.7 The fiduciaries of the scheme must complete an annual declaration that the scheme was created, managed and operated in accordance with its stated constitution and that the scheme does not seek to circumvent the intention of the the Act and the Construction Sector Codes.